Suppose I have 5000 and I buy silver micro with NRML order type… Now suppose silver price drops by 5500(suppose)… will my position get squared up or Will i get debit balance of Rs 500/- ??
Suppose I have 5000 and I buy silver micro with NRML order type. Now suppose silver price drops by 5500(suppose). Will my position get squared up or Will i get debit balance of Rs 500/-?
1 Rs movement in Silver Mic means a 1 Rs loss in your account. So yes if silver falls by 5500 points, that will cause a loss of Rs 5500, if you are long.
At Zerodha we have an auto RMS rule set, so if you lose more than 70% of your captial, the position gets auto squared off. So if your account balance goes from Rs 5000 to Rs 1500, your positions will auto square off to ensure that the account doesn't go into debit. Don't know if all brokers use auto square off feature.
Your question in unclear.
I was looking for that answer.
Also suppose i have bought 10 silver micro contract with margin of rs 2000 each.
Now suppose the loss is of rs 1410 per contract.
Then if one contract gets auto squared of , then 70% limit wont be reached for other 9 contracts, coz my total capital will increase as margin of 1 contract gets freed up,
In such a case…will there be square off of all the 10 contracts or only 1 contract?