in intraday if i have 10000 only in my trading account , rs 8000 is needed to buy 1 lot, i bought 1 lot and sold it(squared off). can i buy again a lot in the same day? i mean can i use that MTM money in RMS to buy again or it need to be settled to use that first squared off trades money?
Hi Sudharshan,
You can use the MTM profits of the first trade. Any amount realized after position squared off can be used to take another trade for the day ( intraday trade). In case if you take the NRML position, using the realized MTM then it will be a problem like shortage of margin, let me explain:- Eg 1 lot of nifty requires 16000/- margin to carry overnight, assume had Rs 14000/- in account & MTM profit for the day is RS 2500/-, So now my cash balance will be RS 16500/-. Using this I take a new position in NIFTY (NRML) 1 lot, in reality the realized MTM will be settled on T+1 day, even though system has allowed me to take a position in NRML, iām short of Rs 2000/- to pay. For this short fall amount Exchange will charges a penalty of certain % of the short fall.
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If you are buying again for intraday purpose, no issues, go ahead and use the profits too.
Yep, you can.