How a lot margin is blocked in case of CNC?
Suppose I’ve purchased 10 lakh shares or 10 Rs, How a lot cash do I pay? 10 lakhs * 10Rs solely? or some further margin?
After 5 days, there’s an unrealized lack of 2 lakhs. Does this unrealized loss quantity get deducted from the accessible margin?
How do issues work within the case of supply of shares? I’m conscious of the intraday margin however needed to know the margin requirement in case of supply of shares.
prakash1975:
Solely 10 lakhs * 10 INR and hold some free change within the buying and selling account for paying the associated transaction fees for the acquisition.
No want to take care of further margins or legal responsibility of future obligations on this state of affairs. You’ve gotten paid in full on the time of buy.
so principally, there isn’t a margin idea in case of supply (CNC) proper?
Jack_R:
so principally, there isn’t a margin idea in case of supply (CNC) proper?
No margin idea once you purchase utilizing CNC and take supply of shares into your demat account.
However, once you promote shares out of your demat (CNC sale) your entire sale proceeds gained’t be credited to you buying and selling account on the identical day of sale. I feel its about 80% will get launched on the identical day and the remaining 20% of the sale proceeds will get launched to your buying and selling account 2 days later.
@Jack_R
From the margin perspective, it’s 20% which you must should provoke the commerce. This margin could be atleast 50% in CASH element and relaxation in non-CASH element. So in your case, the quantity can be approx 2 lakh. However throughout settlement you need to pay full 10 lakh to the clearing company. Nevertheless, to keep away from this threat, many of the brokers block your entire quantity of 10 lakhs (as per their RISK coverage). No further margin is required as you might be already paying the whole order worth.
No affect of un-realized loss except you’ve gotten both purchased them through MTF (Margin Buying and selling Facility) or pledged them to get collateral margin.
Once you promote supply shares, you make an early pay-in (instructing the dealer that you’ve shares and are marking them to be delivered throughout settlement). In that case, you get 80% of the sale worth as margin benifit.
iamshrimohan:
From the margin perspective, it’s 20% which you must should provoke the commerce. This margin could be atleast 50% in CASH element and relaxation in non-CASH element. So in your case, the quantity can be approx 2 lakh. However throughout settlement you need to pay full 10 lakh to the clearing company. Nevertheless, to keep away from this threat, many of the brokers block your entire quantity of 10 lakhs (as per their RISK coverage). No further margin is required as you might be already paying the whole order worth.
No affect of un-realized loss except you’ve gotten both purchased them through MTF (Margin Buying and selling Facility) or pledged them to get collateral margin.
Why create pointless confusion with irrelevant info?
have to be a monetary advisor or a technical analyst.
