How will peak margin affect my margins for trading in the Cash Segment?

How will peak margin affect my margins for trading in the Cash Segment?

For intraday trading: The maximum exposure for intraday trades will now be limited to 5X. 

For selling delivery: Currently, we, as 5paisa, release 100% of the selling value for purchasing other stocks or taking derivative positions. However, starting September 1, we will only release 80% of the selling value on the same day. This means if you sell stocks worth Rs. 1,00,000, only Rs. 80,000 will be released as a margin for purchasing other stocks. But from the next day (T+1), 100% of the selling value will be available for trading.

For buying back delivery sell on the same day: If you sell stocks, we will release 80% of the margin, assuming we will deliver these shares to the exchange in early pay-in. (a) If you don't take any further position against this margin release, there will be no change, and you can buy back the shares. (b) However, suppose you take further positions in other stocks and either hold or square off these positions later in the day and also buy back the original shares sold against which the margin was released. It will attract a margin penalty because there will be no selling obligation, and we won't be able to do early pay-in to the exchange.



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