How much margin is blocked in case of CNC?
Suppose I have bought 10 lakh shares or 10 Rs, How much money do I pay? 10 lakhs * 10Rs only? or some additional margin?
After 5 days, there is an unrealized loss of 2 lakhs. Does this unrealized loss amount get deducted from the available margin?
How do things work in the case of delivery of shares? I am aware of the intraday margin but wanted to know the margin requirement in case of delivery of shares.
Only 10 lakhs * 10 INR and keep some loose change in the trading account for paying the related transaction charges for the purchase.
No need to maintain additional margins or liability of future obligations on this scenario. You have paid in full at the time of purchase.
so basically, there is no margin concept in case of delivery (CNC) right?
No margin concept when you buy using CNC and take delivery of shares into your demat account.
But, when you sell shares from your demat (CNC sale) the entire sale proceeds won’t be credited to you trading account on the same day of sale. I think its about 80% gets released on the same day and the rest 20% of the sale proceeds gets released to your trading account 2 days later.
From the margin perspective, it is 20% which you should have to initiate the trade. This margin can be atleast 50% in CASH component and rest in non-CASH component. So in your case, the amount would be approx 2 lakh. But during settlement you have to pay complete 10 lakh to the clearing corporation. However, to avoid this risk, most of the brokers block the entire amount of 10 lakhs (as per their RISK policy). No additional margin is needed as you are already paying the complete order value.
No impact of un-realized loss unless you have either bought them via MTF (Margin Trading Facility) or pledged them to get collateral margin.
When you sell delivery shares, you make an early pay-in (instructing the broker that you have shares and are marking them to be delivered during settlement). In that case, you get 80% of the sale value as margin benifit.
Why create unnecessary confusion with irrelevant information?
must be a financial advisor or a technical analyst.
He joined just 7 hours back. Am sure he was trying to be helpful.
@prakash1975 Just an investor, who has been into the markets since 2008! Helping traders and investors! 
Hi. Suppose I have 10 lakhs cash in my trading account. I want to be able to place bids of at least 10x that amount, suppose 10 lakhs in 10 different securities. I don’t mind if the 9 bids get cancelled automatically if any one transaction goes through. Is it possible with Zerodha or do any other brokers allow this? I don’t want to be paying any interest . Thanks.
Those days are gone, max leverage is around 5X now.
So you can punch order using MIS for 5X ( as per margin guidelines, without MTF no broker will give higher margin ), later if you want to carry, convert position to CNC for what is filled. For CNC you need 100% cash value.
otherwise use GTT where margin is not blocked until execution, but it has its own demerits as the order is not in the EXCH orerbook so lag/order skip etc can happen.
How to use the Good Till Triggered (GTT) feature? (zerodha.com)
For margin derivative positions, nothing changes and margin is nearly the same for intra/carry trades, at best you can have hedge or counter side trade for margin benefit.
I have an interest in a few illiquid scripts where there are sellers/transactions just a few times a week. Doesn’t make sense blocking money for whole days when there probably might not be a single seller. Hence, trying to figure out a way. These scripts are not in FNO or such. No way to square off EOD. And pay interest for what when there won’t be a transaction!! I will have more than enough cash to cover up for any transactions that happen.
How to convert fulfilled MIS orders into 100% cash CNC? Is there any penalty or such? Thanks
see here
How to convert MIS to CNC/NRML and vice versa? (zerodha.com)
There is no penalty, you need full value in cash to carry(BTST or delivery) in CNC