Ex: At present Nifty requires 44,000 rs to buy say 1 lot(100).I have Rs 88000 in my trading account.Next day market opens down by 440 points and still going down…i am incurring 44000 loss when it opens.
My question is the moment loss crosses 44,000 will my position be squared off and my trading account be left with 44000 Rs or my entire Rs 88000 will be eaten up and position still in active state
You require 44k to hold position and if you lost 44k out of 88k and even then you are having 100% of required margin and your position won’t be touched.
At what particular loss percentage your position is squared off depends totally on broker you are trading with.You can check with your broker if you want specifics.
Thx for the answer…My concern is i want to trade in nifty as well as Stock futures from the same account…Most of the day i will in Nifty position but not always on stock futures…If by chance on some day nifty goes against my position by 500 points my remaining money also will go…is there any way to lock the remaining money when not used for some position…also i am with zerodha…if you know at what percentage they will square off will be helpful…Thx again
you can write to [email protected] or can call 080-40402020 to know about zerodha policies.
if there is margin requirement due to Mark to Market loss in a positional trade ; Does it attract the penalty and interest ?
if yes ; then; after the margin intimation ; within how many days; if the client add on the funds; then; the penalty and interest won’t apply ?