hi i have simple question…if i have equity of hdfc rs. 5 lakhs…now i want to buy a hdfc future 3 lots generaly required margin of 175000…for intraday or for holding 1 week…in this situation…my pledging stock valued 4 lakhs enough or i can arrange extra money in my trading account?..
Hello @ahmadmemon1
When you pledge shares, you will receive a margin amount after a haircut is applied on the pledged amount. HDFC has a haircut of 12.5% so if you pledge 5 lacs worth of HDFC then you will receive 87.5% of it as margin which is Rs.4,37,500.
To trade 1 lot of HDFC Futures(Lot size - 500), you require an NRML margin of 90k and an MIS margin of 35k.
To trade 3 lots of HDFC Futures, you require an NRML margin of 2.7 lacs and an MIS margin of 1.05 lacs.
Now, when you take a Futures position using Collateral Margin from pledged amount, 50% of the margin is used from the Collateral Margin and the other 50% must be in Free Cash.
Let’s assume you have zero free cash in your account, then you can still buy 3 lots of HDFC Futures using only Collateral Margin entirely but 50% of this margin value will be charged an interest rate of 0.05% per day due to the cash deficit in the account.
In this case, you will be charged 0.05% interest per day on the cash deficit of Rs. 1.35 lacs for 3 lots of HDFC Futures in NRML.
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Thanks its very use full for me…one more clearification…the charges of interest is 6.75 rs ir 675 rs?
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