Margin, Leverage and Pledge
Which stocks are eligible for Pay Later (MTF) ?
We offer Margin Trading Facility (MTF) on over 750 stocks. You can find the list of eligible stocks below. Script_Name ISIN Symbol 3M INDIA LIMITED INE470A01017 3MINDIA AADHAR HOUSING FINANCE L INE883F01010 AADHARHFC AARTI INDUSTRIES LTD INE769A01020 ...
What happens if a pledge request is submitted after 4:00 PM ?
At 5Paisa, Margin Pledge Requests are accepted till 8 PM and Unpledge Requests are accepted till 3:30PM on trading days
Can clients submit margin pledge requests before 4:00 PM on any day?
At 5Paisa, Margin Pledge Requests are accepted from 8 AM to 8 PM on trading days.
What is the cut-off time for submitting pledge requests?
At 5Paisa, The Cut-Off time to accept Pledge Requests is 8 PM on trading days.
Important Regulatory Update Affecting Trading Limits Starting August 1, 2024
Dear Client, There is to inform you about an important regulatory update which might affect your trading limits starting from August 1, 2024. SEBI, vide its circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024, with respect to Norms ...
Why should clients transfer funds to cover margin shortfalls?
Clients should transfer funds to cover margin shortfalls for several important reasons: 1. Avoiding Penalties and Charges: Exchange Penalties: Exchanges impose penalties for margin shortfalls. These penalties can be significant and can accumulate ...
How much penalty/What’s the penalty rate levied by the Exchange?
The penalty rates levied by stock exchanges can vary based on the violation or non-compliance. For instance, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India impose different penalties for various infractions, such as ...
How is the Margin Penalty Calculated?
Margin penalties are imposed by exchanges and brokerage firms when an investor's margin account falls below the required minimum margin level. Here’s a concise guide on how margin penalties are typically calculated: Steps to Calculate Margin Penalty: ...
Can covered bonds be pledged as collateral to receive collateral margin at 5Paisa?
Covered bonds can be pledged as collateral to receive a collateral margin at 5Paisa. Covered bonds are high-quality debt securities backed by a pool of assets, providing a high level of security and making them an attractive form of collateral for ...
Why is the entire margin required to enter into a hedged position?
Hedged positions aim to reduce risk, but they still require margin. There are two main reasons why you might need to put up the full margin when entering a hedged position: Short Options or Futures First: When you initiate a hedge by selling ...
Why is higher than usual margin blocked for my F&O trades close to expiry?
Higher than usual margin is blocked for Futures and Options (F&O) trades close to expiry due to the nature of physical delivery associated with these contracts. As F&O contracts approach their expiry date, the margins required for these contracts ...
Why does 5Paisa square off positions?
5Paisa square off for various reasons. Here are some reasons to help you understand why it is done: Scenario 1: T+6 Debit Square Off Timing: Daily at 3:15 pm Criteria: Square off for clients purchasing NON-APPROVED Stocks. Exception: Debit less than ...
What's the reason behind the blockage of market orders for long-dated options?
Market orders for long-dated options are typically blocked due to liquidity and risk management practices by the exchange or brokerage firm. The lack of liquidity heavily influences long-dated options in market order. They also have lower trade ...
What is Value at Risk (VaR), Extreme Loss Margin (ELM), and Adhoc margins?
Value at Risk (VAR) is a statistical measure used in risk management to estimate the potential loss in value of a portfolio of assets due to market movements over a certain time period and with a certain level of confidence. VAR is commonly used in ...
What is the Margin requirement in MCX/Commodity?
The margin requirement in MCX or commodity trading refers to the minimum amount of funds traders must maintain in their trading accounts to initiate and hold positions in commodity futures contracts. This margin serves as collateral to cover ...
What is Peak Margin?
Peak Margin is a regulatory measure that mandates brokers to collect a minimum margin from clients before executing any intraday or delivery orders in the Cash and derivatives segment. The main objective of Peak Margin is to curb excessive leverage ...
What is BTST Margin blocked?
BTST (Buy Today, Sell Tomorrow) – Trade Settlement in 5paisa BTST stands for “Buy Today, Sell Tomorrow” — a trading strategy where you purchase a stock and sell it the next trading day, before the shares are credited to your demat account. Please ...
What is ALB?
ALB, short for Adjusted Ledger Balance, is a crucial component of the fund pay-out mechanism. It indicates the amount of funds available for withdrawal.
What is 5Paisa's policy on the physical settlement of equity derivatives on expiry?
As F&O contracts approach their expiry date, the margins required for these contracts increase to align with the contract value. This is because physical settlement involves the actual delivery of the underlying stock, necessitating higher margins to ...
What are the different types of margins charged by the exchange?
The additional money the stockbroker pours into your trading account to complete a transaction is known as margin money. Exchanges set minimum margins to act as a security deposit for trading and collect from the client. Here are the components of ...
What are the auto square-off timings for open intraday positions?
The auto square-off timings for open intraday positions vary according to the rules and regulations set by specific stock exchanges and brokerage firms. For Equity/Cash Segment : 3.15 PM, Equity Derivatives: 3.15 PM, Currency Derivatives : 4.30 PM & ...
How to find the margins required to take a trade?
On the 5Paisa platform, all you need to do is key in details of the stock you wish to trade, the number of shares, the price of the stock, and the type of trade to determine the margin amount for a trade within the order window in the margin required ...
Does 5Paisa provide leverage for delivery/carry-over positions?
At 5Paisa, We Provide Equity Delivery Exposure of 1x and Intraday as 5x for Cash Segment in NSE & BSE. For Paylater (MTF), We provide exposure upto 4x. For NSE & BSE Derivatives, NSE Currency Derivatives & MCX Commodity we provide exposure of 1x.
Can the options premium received be used to open new F&O positions?
Yes, you can utilize the options premium received to initiate new F&O (Futures and Options) positions. However, there are certain conditions to consider: Same Trading Day: On the same trading day, you can use the options premium received solely to ...
Can long-dated contracts be traded in 5Paisa?
While 5paisa allows trading in long-dated contracts, it's crucial for clients to evaluate the liquidity of the option contract beforehand. This can be done by examining the market depth. Clients are exposed to higher risk when the stock lacks ...
By when should additional margins be added if a margin call is received?
At 5Paisa, you will be informed through the margin call of the stipulated period within which you must add funds and fulfill the margin requirement. If the required margin is not met within this period, your positions may be squared off by the risk ...
How can I pledge my shares for collateral margin?
Process for Pledging: Step 1: Access the 'HOLDINGS' page in the 'BOOK' section of your 5paisa Mobile app. Step 2: Click on the Pledge/Unpledge button at your screen's bottom right. Select the shares you wish to pledge and click the 'Submit Request' ...
Where can I get the approved scrip for Pledge Margin?
You can access the list of approved scrips eligible for Margin Pledge by visiting the following link: https://www.5paisa.com/trading-approved-script-list The above link will provide you with a list of scrips that you can pledge as collateral and ...
What are the Charges for MF pledge & Unpledge?
Please refer below Pledge and Un-pledge Charges Pledge Charges - Rs. 20 plus GST Unpledge Charges - Rs. 20 plus GST The charges mentioned above do not include GST , GST will be charged at 18% and will be deducted from your ledger account whenever you ...
Where can I see the margin received against pledged funds?
After a customer has successfully completed the pledging process for their holding units, it may take up to 15 minutes for the margin to reflect and update in the system. Once the system has been updated, customers can view their collateral in the ...
How will peak margin affect my margins for trading in the Cash Segment?
Intraday Trading Exposure The maximum exposure for intraday trades will be upto 5X. Funds Released from Delivery Sell: When you sell stocks from your demat holdings (DP Free Holding), we at 5paisa release 100% of the selling value as Margin, which ...
How will peak margin affect my margins for trading in the derivatives segment?
For Intraday trading: The maximum exposure for intraday trades will now be limited to 5X For Hedge Margin Trades: If you're trading with a hedge, you enjoy the margin benefit. However, if you decide to close the hedge position, it's crucial to first ...
How will peak margin affect margins for Hedge Positions?
Customers benefit from margin when their trades are hedged. However, it's crucial to note that if you close the hedge position, you should prioritise closing the leg of the transaction with higher margin requirements first. Failing to follow this ...
Can I sell shares if they are pledged?
With 5paisa, you can sell your pledged shares anytime without providing separate instructions or requests. For non-POA clients, the process involves following the TPIN process.
Can I unpledge the securities?
Yes, you can unpledge the securities once you fulfill the loan agreement or on the complete repayment. To unpledge the securities on the 5Paisa you can follow the steps on mobile app: 1. Go to the Book Section and navigate to the Holdings ...
How will the margin pledge effect my positions and limits, if I have avail Margin Trade Funding (MTF) facility?
All clients (Both POA or NON-POA) availing of the Margin Trading Facility (MTF) facility, in order to continue with this facility, need to initiate a “Future Pledge” request of the shares from our website or your mobile app up to T+1 day by 12 PM. To ...
What is Pledging?
Pledging is using an asset as collateral to secure a loan. It is most familiar with using securities such as stocks, bonds, or mutual funds to obtain a bank or financial institution loan. Here’s how pledging works: · You give ownership of the stocks ...
Will I get margin benefit immediately after I sell my stock?
You can immediately get 100% Margin benefit from shares sold on the same trading day (T-day) under specific conditions: · Shares sold should be available in your Demat account (DP Free) without any pledge against them. Benefits of sales proceeds for ...
What will happen after T+1 on receipt of delivery of shares?
After T+1, 5paisa will initiate a verification process to ensure compliance with the share delivery settlement. If you have settled the debt arising from the share purchase, the shares will be transferred to your Demat account. If you have created a ...
What is the changes in Limits/margin benefit from 1st Sep 2020?
SEBI and Exchanges, has introduced changes in certain rules for collection and reporting of margins received from clients. Below areas in which it will be an impact on the way you are availing margin benefit for trading. Margin Benefit while Buying ...
Next page