How to understand a Margin statement? why it is needed?
I really cant understand Margin statement being received from my broker every day.
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Every client is sent a daily margin statement and a contract note. As per the SEBI norms every stock broking firm should notify their clients about the daily margin positions. Every exchange requires a separate margin statement and if you have been trading on all exchanges, you'll receive a statement for all. A margin statement for a particular exchange will have all the segments included. The daily margin statement should be issued within 1 working day from the Trade (T) Date.
Every broker will have to compulsorily disclose the following details in the daily margin statement:-
- Client Code, Name, Trade Date & Exchange
- Total margin deposit up to day T-1
- Margin utilized up to the end of the day T-1
- Margin deposit on the day T
- Margin Adjustments for the day
- Margin Status at the end of the day
Kindly go through the following screen shot to know more:-
When the client buys securities he pays the full price or can borrow part of the purchase price from Zerodha. After the client opens the margin account, the securities purchased out of the margin money will be treated as a collateral for the loan amount. If the securities in your account decline in value, the value of the collateral also reduces. When the margin position enters a dangerous level, Zerodha can take action by issuing a margin call or sell the security in your account.At Zerodha, daily margin statement are sent to the registered email address of the client. However some brokers also provide the daily margin information as a part of the client contract note.
Hope it helped :)
Screen shot not visible…My cash balance and Margin differs by double, is this same for all or what is the calculation behind this?