What is Margin?

Margin is the upfront amount required to be maintained by a client before taking a position. This Margin is determined by the Exchange and varies across different segments.

Note:
 At Navia, we collect a minimum of 20% of the traded value for intraday trades in the Equity segment. This differs for delivery-based trades.

What is Peak Margin?

Peak Margin refers to the highest margin required by a client on any given day. The Clearing Corporation randomly takes a minimum of four snapshots of the margin required on a given day. The highest of these snapshots is the Peak Margin, which must be maintained by the client throughout the day.

What is the Difference Between Peak Margin and End of Day (EOD) Margin?

• Peak Margin: The highest margin required on a given day.
• End of Day Margin: The margin prescribed by the Exchange at the end of the trading day.

What is a Hedge?

A hedge is a protection created to safeguard your trading position if the market moves against your expectations. For example, if you have a long position in Nifty and simultaneously buy a PUT Option, you are hedged. SEBI offers significant margin benefits for trading with a hedged strategy.

What Happens if One Leg of a Hedge Position is Removed Without Sufficient Margin?

If one leg of a hedged position is removed, the margin requirement increases significantly, leading to a margin shortfall. Ensure you have sufficient margin before removing one leg of a hedged position to avoid penalties.

Can I Convert My Position from Intraday to Carry Forward/Delivery?

Yes, you can convert positions from MIS (Intraday) to NRML/CNC/Delivery (Carry Forward), provided you have sufficient margins for the Carry Forward position. This conversion must be done at least 30 minutes before market closing or before the auto square-off is triggered.

When Will My Intraday Positions (MIS/CO) Be Squared Off?

Intraday orders placed under MIS and CO will automatically be squared off within half an hour before market close or when the Intraday MTM reaches 40%, whichever is earlier.

Are Cheque Payments Considered for Margins?

No, unrealized cheque payments are not considered for margin/MTM shortfall. It is advisable to make an online funds transfer to hold such positions.

Can I Pledge a Stock to Get Additional Margin?

Yes, you can pledge stocks held in your Demat account to get additional margin for trading in the Equity or Derivatives segment. The value of stocks after the haircut and a 1:1 cash-to-collateral ratio is required to avail of this benefit.

What Happens if the Stocks I Gave as Collateral Move Out of EQ Series or Their Haircut Increases to 100%?

If any of your collateral stocks move out of the EQ series or their haircut increases to 100%, they will be removed from the pledge and returned to your Demat account. You must then provide additional funds or other eligible collateral stocks to maintain sufficient margin.

Will I Be Allowed to Use the Profits I Have Made in F&O Trading for Further Trading on the Same Day?

No, profits made in F&O trading are settled on a T+1 day basis, as per SEBI regulations. These profits will not be available as a margin on the same day for further trading.