Comment on Orders - Place, Modify, Cancel & View

Sundararaman commented on 22 Nov 2016, 09:34 AM

I want to use the weekly charts to do my Stock futures trading. I want to open a position and keep it for few days or end of the week. I want to setup stop loss & target level using NRML order. I want to understand the margin requirements. I will give a scenario.

I wanted to Buy HDFC16NOV at 1272 on 21/11/2016. SL is 1232. Target is 1308. I know that it will most probably reach 1308 by the end of this week. If not also i would like to take profit by end of this week. I want to use NRML order. How do i calculate margin requirements?

1) I will use the margin calculator using the below link i.e Equity futures. I will enter the price & money that i have. It will give me how many lots i can buy as NRML & MIS.

2) The above step is for entry. Do i need to do the same for stop loss order as well? So i should have similar amount of money for SL order as well. Am i right? The NRML order does not have SL in built in it.

3) The same goes to target order as well. Am i right?

4) So i would need roughly around 3 times the money required in step 1 or even more. Am i right?

5) What if i don’t use SL order & only target order? I want to risk the entire amount placed in step 1. How do i calculate the SL price till which the order in step 1 would last? i.e How far should the market go against to take out my entire amount in step 1?

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