Comment on Zerodha - Margin Policies

Praveen commented on 17 Jul 2013, 05:13 PM

Sir i checked out the margin policies Excel and found that in cover order the stop loss must be 1.5% range. But take this example. If i buy opto circuit at 30 and according to this stop loss should be 29.55 i think (using cover order) and lets say i got 10000Rs then leveraged amount will be 10000×17(as for opto circuit leverage is 17times using cover order). Now i can buy approx 5600 shares. As the stop loss is very near to share buy price if it hit stop loss then i will be losing 2617Rs(i got this answer from your ZERODHA BROKERAGE CALCULATOR PAGE).

All i want to ask is if i use only margin which gives 8times for opto circuit then my total money will be 80000 and i can buy 2600 shares approx. lets say i didnt use stop loss and my target is 30.25 then i will get a profit of 603 approx. It is much better to earn a little than losing a lot. so I want to know if i use only margin( i.e not cover order) then can i use it without stop loss with target price.

can i use target price without any stop loss in margin intraday sqaure off. Ya i know if price fell i will suffer huge loss but as opto circuit is a high volume stock increase in only 25paise is somewhat possible..

Awaiting your reply

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