How to trade in intraday(equity) using leverage for a regular limit order?

General
1

how to trade in intraday(equity) using leverage for a regular limit order? and also how to short stocks using leverage under same conditions?

2

Place a Limit BUY / Short SELL order under MIS Product type and the Intraday leverage is applied automatically.

For leverage availability for each stock check the link below:

3

14x is the maximum leverage available.

1 Like
4

Hi,

Can anyone advice me how to use use margin leverage?

Suppose I transfer a capital of 1000 Rs then how I can buy stocks on leverage?

Thanks

5

@portfolioplus911 thanks for answering.
So does that mean that I don’t have to do anything else other than simply placing an MIS order?

Also, say I have a fund of 10k and I buy 1000 stocks of Rs. 100 since it offers a leverage of 10x. So where will I know that 90k of leverage is being used on my trading terminal, will it be in my ‘funds section’ under ‘margin’ or where will it be?

Also, can a MIS initiated trade be converted to CNC?

Thank you once again.

6

There’s nothing else that you need to do.

It doesn’t work that way, If you put 10k in your account broker doesn’t put 90k against it. If you take trade with MIS in stock with leverage of 10x instead of you needing 10k for purchasing those shares, MIS gives you ability to buy those at only 1k and that amount is blocked from your funds, leaving 9k spare in your funds for other trades.

You can convert MIS to CNC but you should have the full funds available to carry position over. With CNC you can’t buy 10k worth of shares in 1k.

7

Thanks for the reply-

If you put 10k in your account broker doesn’t put 90k against it. If you take trade with MIS in stock with leverage of 10x instead of you needing 10k for purchasing those shares, MIS gives you ability to buy those at only 1k and that amount is blocked from your funds, leaving 9k spare in your funds for other trades.

Okay I am still not clear.
Lets say: Stock price is 100.
Actual available balance: 10,000
Leverage provided: 10x

So I can I buy 1000 stocks in MIS (instead of 100 which is sufficient for CNC) and block entire 10k of my funds leaving 0k funds for other trades or is this not possible? Or are there some contraints.

You can convert MIS to CNC but you should have the full funds available to carry position over. With CNC you can’t buy 10k worth of shares in 1k.

Oh I got it thanks : )
Also, If I have a balance of 10k having bought the stocks of 100k using leverage and I try to convert it to CNC, will it only convert 10k worth of stocks to CNC and give me the PROFIT or LOSS generated by that at the end of the day and add it 10k if profit and deduct it from 10k if loss. Is this correct?

Thank you for answering my queries.

8

When your 10k is blocked you won’t be able to take any other trades and you will also receive margin call message from broker to deposit extra funds.

Yep, any loss will be deducted from 10k while any profit will be added to 10k. Keep in mind though if you get a margin call from the broker and don’t bring additional funds broker’s RMS team will square-off your position.

I haven’t yet converted MIS order to CNC so I can’t tell if partial conversion is possible. @Siva can you clear this?

9

Yeah, partial conversion is possible provided enough cash is available.