Trading queries for Normal & MIS positions

#1

Hi Team,

While I am planning to open an account with Zerodha and initiate trading, i was understanding products from one of my friend. I have the following doubts before I begin.

Assuming I have 10 lacs as margin (5 lacs as stock & 5 as cash). If I take MIS position in Equity consuming 3 lacs of margin and position in future consuming 2 lacs. As I understand the product, since 5 lacs are consumed for MIS, my risk trigger will be at 2.5lacs. However, MTM (unrealized PL) of positions across segment will net off against each other while calculating 2.5 lacs or not?

also, what is consumed first, Stock margin or Cash margin?

Regards & Thanks in advance!!

#2

Assuming stock margin means, you have pledged stocks to get collateral.

But if you have collateral that is also considered as margin, hence total 10 lakhs, and risk will trigger after loosing 5 lakhs intraday using MIS.

Yes, it will be net off, but not for option and eq buy in cnc.

Free cash in case of square off.

#4

what is I only have pledged margin, no cash margin, and if risk triggers, will my entire pledged stock be sold?

#5

Thank you Siva for the revert. couple of follow up questions please…

I did not understand this. Margin utilized is 5lacs (3lacs for Cash & 2 lacs for Futures), hence trigger should be 5lacs of available margin + 2.5 (50%) right?

#6

Yes, if only 5 lakhs is used out of 10, then one can loose 7.5 lakhs before trigger in mis.

#7

Siva, could you please revert on this?

#8

Position will be closed and you have to make good for the debit.

#9

Hi Siva,

how is Booked Profit / loss treated for MIS positions?

If I book a profit of 50k, will it add to Net Available Margin realtime? and will it allow me to take positions on other products?

#10

Yes, it will be added immediately, you can use that to do intraday trading.

#11

Nice… but as this is sure money to come, why cant I utilize it against CNC, or Carry Forward FO positions.

#12

Hi Siva,

will I be able enjoy the same leverage as to for cover order since both are strict intraday orders??

If no, wat is the highest leverage I can have in comparison to cover order?

Also, how do i check the allowed exposures on various stocks??

#13

with this last answer, I am sorted and set to go…

#14

Can check the leverages here.