Need advice on how much margin should be used,find liquid stocks and find the appropiate amount to trade in a stock

Hi,

If i have x amount as capital.and i trade upto 10 stocks/trades per day.then,since cover order provides minimum 13 times margin,i thought each trade should be worth 1x since it can max go to 10x.correct me if iam wrong here but,however,if iam not able to squareoff my long position because buyers are not available( here iam trying to sell to squareoff)or iam not able to squareoff my short position because sellers are not available(here iam trying to buy to squareoff),then if its a long position,i need to convert into delivery or if its a short position they will auction the shares for the highest price among T+3 days or 20% whichever is higher and if it still does not get sold,then i have to pay interest daily on the shares iam not able to squareoff.or in the worst case,if iam trading 1x * 10trades,i need to have more than 1x money(which is my total capital/networth) to take delivery or pay for short delivery.in case i default,they will give me legal notice.so is’nt margin trading a big risk in case we are not able to squareoff our positions due to lack of buyers or selleres at end of the day.in that case why do brokers make a big deal with offering margin or customers prefer lot of margin offering.also,how to identify liquid stocks to trade.and if i want to take a buy or sell position in a particular stock because i know it will go up or down,but i dont know how much shares i will be able to buy or sell,how to judge the liquidity of that stock so that i can decide to say, trade for this much amount in this stock.

Thanks and regards
Vasisht

Yes, you are correct. Thank you.