What are the ways to avoid Margin Trading and avoid penalty.
Please guide me .
I don’t want to trade with margin.
Because it is very risky.
- Use CNC order type instead of MIS, thus reducing leverage from 5x to 1x.
- Use broker that donot provide margin trading facility MTF on delivery of stocks.
- Avoid futures and option selling, you will be still getting leverage there.
- Exit before auto square off timing, if trading MIS in options.
- Have buffer of 0.10x of traded price. Even you loose money, you will have some short of fund to pay for government charges and brokerages or any other i.e. clearing charges or etc. Thus, reducing the chance of penalties and interest on short-fall capital.
- In Indian stock market there are only two option to trade with 1x leverage i.e, CNC order type for equity and MIS/NRML for option buy and rest of them are leverage product.
It will be risky until you becomes risky to market.