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.
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.
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