Comment on Stop Loss orders - Limit/Market

Hanan commented on 12 Nov 2013, 01:43 PM

1. My question is that can I short a lot (or 3 or 4 lots) of NIFTY Futures ?
Means if on 12/11/2013, at 11:20 I buy 3 lots NIFTY futures for price = 100, then where should I look prior to buying to ensure I have enough SPAN and Exposure Margin Money ? Kindly tell me the exact place in NEST Trader.
Answer: Yes, you can short sell Nifty futures, if you have Rs. 24,765 for one lot, so for 3 lots you need to have Rs. 74025 (3*24765). This margin amount is the same whether you buy or sell Futures. So before you place a trade ensure you have the said margins and then place the order. The easiest place to check margins is here on Zerodha Margin Calculator. To know the margin available in your trading account on ZT, you need to click on Surveillance (you can see this on top of your trading terminal) – RMS Limits – View Limits. This tab of Cash Margin Available will depict your opening balance for the said trade date. In the same window you will see another tab as Margin Used. If the margin used shows Rs.74025 (for 3 lots of Nifty), this margin will be deducted from the cash margin available and the remaining amount will be your fund available for further trading. Click here, for more information on how to check Limit in Zerodha Trader along with snap shots.

2. If I initiate a SELL-Limit at price =100 (or is a stoploss -M see order better?) for 3 lots with product code MIS and then say till 3:10 I see that price is going up (say it is at 101) then I wish to keep it overnight and try to buy back tomorrow. In order to buy back tomorrow (or after 3-4 days) can I do a position conversion to NRML ? If yes (where can I do that?
Answer: If you want to hold MIS positions overnight, you can convert the position to NRML before 3:20 PM, if you have the said margin required to hold the position overnight as mentioned in point 1 of your query. If you have sufficient margin and these orders are executed today, you can convert the position to NRML in your Trade Book. Click here, to know more about conversion of position from MIS to NRML and vice versa with snap shots.

3. Tomorrow, if want to BUY back tomorrow, what are the steps ? Kindly tell the details ?
Answer: There are two ways to buy back your overnight short position.
—-If you want to buy your short position at the current market price, you need to press F11 to open the Admin Positions window. Inside this window you need to select Show all Clients below User Option, your client ID is displayed below. Double click your ID, select Netwise from the Daywise/Netwise drop down on your right, and click get positions to see your overnight positions below. Select the position you’d like to square off at market price and click square off. You can see your buy qty and sell qty matching and Net Qty will show NIL.
—-If you want to place a buy order below the current market price, in your market watch click on the scrip and press F1 and enter the number of qty and price and click submit, the order will show as pending in your order book. Press F3 to check the order book. The order will be executed when the market price reaches your limit price.

Are there any other special requirements or things I need to take care of a SHORT SELL kept overnight ?
Answer: For Futures, short sell or buy, you need to have sufficient margins to hold overnight. Kindly note margins are updated on a daily basis, so suggest you click here. Get yourself updated on margins before you place your trade. Hope this gives you the information you require.

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