How much free margin should we keep available?

Trading
1

Hello friends & Zerodha, I wanted to know what should be an ideal extra free margin which I should keep in my account.
Let’s take an example
My total available margin = 20K
Nifty 75 BO margin requirement ~~ 16K(approx).

So ideally I have margin to go for one lot BO nifty. But as trade proceeds in my direction, I generally get SMS from zerodha that my margin utilisation is 500% or something and your position will be sqrdoff.

So what should the extra margin which I should keep. I don’t want to keep just unlimited amount like 1 lac or 10 lacs.

I just think that for any future contract trading we should keep the total actual value in margin (in this case around 800k for nifty) . What you says as keeping 800k also defeats the purpose of taking leverage.

1 Like
2

It all depends on your stoploss.
if you want to keep trading daily and don’t want to burst your account then you should not risk more than 2% of your capital. - The most important rule for new traders.

1 Like
3

Hey - I am not talking about stop-loss . I am asking what should be an ideal free margin available when we enter a trade. Any calculation which can help us like keep 5% extra or 10% extra

4

I think whatever profit or loss happens, it is deducted from your margin real time

So if you have 20K margin, and 16K is used up for buying 1 lot Nifty intraday.

Now if you have 4K loss, your trade should get auto closed.

Anyone correct me if I am wrong.

5

Don’t let a trade auto close…That means keep 50 perc of maximum trade value in ur account

Better take delivery in spot. It saves ur health and bp.