Comment on Trading Q&A

Nithin Kamath commented on 06 Mar 2016, 03:11 PM

1. When you buy 1000 shares at 77 for intraday, u r buying Rs 77000 worth of shares and a margin is blocked. Assume this margin is 10% or Rs 7700. If your account has only Rs 77000 and if market falls Rs 7.7, then you would have lost the entire Rs 7700 in your account. If markets any further below 69.3 (77-7.7), your account will go in negative. Once you take a position you can hold till 3.20pm, provided you are maintaining the balance of Rs 7700.
2. Not at 75, but typically if the margin required in your account drops by more than 40%, it is possible. So if you had only Rs 7700 and you lost Rs 4000, your account balance is now at 3700, our RMS system might auto square this off.

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