Option trading on ICICIdirect - margin calculation

Short delivery refers to a situation where a client, who has sold certain shares during a settlement cycle fails to deliver the shares to the member either fully or partly. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. Currency Future - ICICIDirect is offering third lowest among full service brokers with Rs 25 Per contract which is lower side, where sharekhan is charging Rs30 which is slightly higher and Geojit is offering between 10 to 15 Rs as lowest. Can I have multiple Bank accounts linked to my e-invest account? Yes, you get online confirmation of orders and trades - the status of any order is updated on real-time basis in the Order Book. However, in the event the price rises above his buy price 'A' would like to limit his losses.

Intraday Trading (Margin Product), is for those customers who want to gain from the expected upward or downward movement in price of a stock during the day but have limited money. Margin product is the appropriate solution for such customers which gives leverage upto 5 times the allocated trading amount.

FAQ (NRI Derivatives-Futures & Options)

When you make an investment under the cash segment you expect the price of a stock to increase over a period of time and thereby make profits from selling at a higher rate. However in stock markets the price of a stock moves during the day also as shown below. Margin trading helps you profit from intraday movements in the stock markets if the price moves in your favour. Lets see this graph to understand how it works. Say, if you would have taken a buy position at 9: However your investment was only Rs.

Apart from exposure, the second core benefit of Margin trading is the early breakeven which gives you more opportunity to earn profit. The 14 paisa mentioned is the average charges levied on your buy and sell transaction which includes brokerage and statutory charges.

Suppose you have taken buy position in shares at Rs. In this transaction, you are making 36 paise per stock and total profit would be Rs. So, the movement of even 50 paise in your favorable directions gives you an opportunity to earn good profit. If you do even 3 transactions in a day, you would earn about Rs.

However, in case the price movement is not in your favour, you will incur a loss. Now, lets learn how to place an order in Margin. Google 'AmiBroker' to know more about AmiBroker software. Zerodha Quant analyzes your historical trades and provides insights to make you more data-driven trader. You can see your current profitable streak A challenge , Best day to Trade, Optimal position size etc via Quant.

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Save your draft before refreshing this page. Submit any pending changes before refreshing this page. Ask New Question Sign In. Which one is better for intraday trading? Simple options trading guide. Most options traders lose because they don't know this simple formula. Learn More at prtradingresearch.

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Learn More at beenverified. How do I do intraday trading in Zerodha? How does Zerodha provide leverage for Intraday trading? Start online trading with Zerodha trusted by 9. This way even the criteria of minimum balance is met.

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What are intraday charges by zerodha? You can do this by accessing the Order Book page and clicking on the hyperlink for 'Cancel against the order which you wish to cancel.

In case the order is already partly executed, only the unexecuted portion of the order can be cancelled. Can I enter orders after the trading hours? What happens to such orders? Yes, you can enter limit orders after trading hours. Orders placed after trading hours are queued in the system and are send to the exchange whenever the exchange next opens for trading.

In the Order Book, the status of such orders is shown as 'Requested'. Do I need to have money before buying of shares? Yes, you need to have money in your Bank account before placing an order. Alternatively if you have sold some shares, the sale proceeds can be used to buy the shares you want. Can I go short? Yes, you can go short in the 'Margin Segment'However, such Sell positions need to be closed out before the specified time before the end of the settlement.

You cannot go short in the Cash Segment'. Here, you can sell only those shares which are there in your demat account. How will I be informed of my trade execution? The trade executions are confirmed online and the trading history is updated immediately. In the Order Book, the status of each order is updated on a real-time basis.

On execution, the status changes to 'Executed' or 'Part Executed'. You can view details of the trade executed by clicking on the link. In the Trade Book you will be able to see all the trades that have taken place. On clicking the link of Order Ref. In addition, you will receive e-mail confirmations. You can choose to receive the e-mail confirmation either for each trade when it is executed or a single one for all trades at the end of the day.

The contract note will be send to you by mail at the end of the day. What is a contract note? Contract note is a statement of confirmation of trade s done on a particular day for and on behalf of a client.

A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member and client in respect to the trades stated in that contract note.

Contract notes are made in duplicate, where the member and client both keep one copy each. Can I trade on margin? You can trade on margin on select stocks. However, the system cancels this order if it is not traded within a number of days parameterised by the Exchange.

An Immediate or Cancel IOC order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is cancelled from the system. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately. Any unexecuted order pending at the end of the trading session for the day gets expired. What is a Disclose Quantity DQ order?

Normally, the order quantity is disclosed in full to the market. For example, an order of with a disclosed quantity condition of will mean that is displayed to the market at a time. After this is traded, another is automatically released and so on till the full order is executed. What is a Stop Loss order? A Stop loss order allows the client to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of 'Stop Loss Trigger Price'.

When a stop loss trigger price SLTP is specified in a limit order, the order becomes one which is conditional on the market price of the stock crossing the specified SLTP. The order remains passive i. Once the last traded price of the stock reaches or surpasses the SLTP, the order becomes activated i.

It is used as a tool to limit the maximum loss on a position. However, in the event the price rises above his buy price 'A' would like to limit his losses. The stop loss trigger price SLTP has to be between the last traded price and the buy limit price. Rs , the order gets converted to a limit buy order at Rs However, in the event the price falls, 'A' would like to limit his his losses. The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order.

Once the last traded price touches or crosses Rs. This is treated as a normal order because the condition that the last traded price should exceed the stop loss trigger price for a buy order is already satisfied.

Similary, in case of a stop loss sell order the SLTP should not be greater than the last traded price for the same reason.

What are price bands? The exchanges have fixed price bands for all t securities within which they can move within a day i. Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. The previous day's closing price is taken as the base price for calculating the price bands. What is a Settlement cycle? Please refer Learning Centre. If I have purchased a share, do I have to take delivery? No you can choose to sell the share before the end of settlement cycle.

However once the settlement cycle is over you have to take delivery by paying for it. If I have sold, do I have to give delivery of shares? No you can choose to buy the share before the end of settlement cycle. However once the settlement cycle is over you have to give the delivery of shares from your Demat account.

I buy a share, how will the payment be made and how will I get the shares? The payment will be made on the Pay-In day which depends on the settlement cycle and the exchange. The shares received from the exchange will be automatically transferred to your Demat Account. The money required for purchase will be transferred from your Bank account. A similar process takes place when you sell the share. I have bought some shares but some amount has not been deducted from my Bank Account?

The amount will be deducted from your bank account at the time of settlement. At times, however, the share may be in 'No Delivery' and hence the payment may need to be made after the 'No Delivery Period' is over, which might be weeks away. The date on which amount is to be deducted from your account can be checked from the 'Cash Projection' page. I have bought some shares but shares have not come into my demat account?

The shares will come into your demat account at the time of settlement. Hence you can expect the shares to come into your Demat account on Pay-Out of securities i. In case you do not receive the shares, it may be due to the stock being in 'No Delivery' period.

In this case the shares will come from the exchange after the 'No Delivery' period is over which could be weeks away. The date on which the shares are to be credited to your Demat Account is indicated on the Order verification screen which comes up on submitting a Sell order.

Alternatively, it is possible that the shares may not have come from the exchange because of short delivery by the counter party selling broker.. In this case, the exchange conducts an auction to buy the shares to the extent delivered short by any broker from the open market and the shares may be received a few days later.

If the shares are not received in an auction also, the exchange suitably charges penalty from the person liable to deliver the shares. You are suitably compensated and the consideration is remitted to you as soon as it is received from the exchange.

I have sold some shares but the payment has not come into my bank account? The amount will be come into your bank account at the time of settlement. At times, however, the share may be in 'No Delivery' and hence the payment may be received only after the 'No Delivery Period' is over, which might be weeks away.

The date on which amount is to be credited to your account can be checked from the 'Security Projections' page. I have bought some shares but they still have not come to demat account. Can I sell them? If you are within the same settlement cycle in which you purchased the shares you can sell them.

Or else you can also sell the share using the BTST facility available. What is a short delivery? Short delivery refers to a situation where a client, who has sold certain shares during a settlement cycle fails to deliver the shares to the member either fully or partly. What is an auction? An auction is a mechanism utilised by the exchange to fulfil its obligation towards the buying trading members.

Thus, in case for a settlement, the selling trading members have delivered short, their deliveries are bad or they have not rectified the company objection reported against them, the exchange purchases the requisite quantity from the market and gives them to the original buying member. Auctions are generally held on Friday. What factors give rise to an auction? There are three factors, which primarily give rise to an auction: Un-rectified Bad Deliveries - this is relevant only in respect of shares in physical form 3.

What happens if the shares are not bought in the auction? If the shares could not be bought in the auction i. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction. In case the price movement is adverse, you incur a loss. However, margins are blocked only to safeguard against any adverse price movement. At present, you have to place However, the risk profile of your transactions goes up. How is margin trading different from trading in Cash segment?

For example, when you place an order to buy shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your Demat Account. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. However, if the price falls subsequently, there may be a loss. Since a cash position is meant to be settled by delivery, the required cash or securities are blocked in full.

A sell order in the margin segment can be placed even without having any stock in demat account. However, unlike the sell order in the cash segment which can be placed without having any limit, a sell order in margin can be placed only if sufficient limit is available.

The most important thing to understand is that though you can leverage on your trading limit with margin trading, the risk profile of your transactions goes up substantially.

Which stocks are eligible for margin trading? Why is the stock list restricted to specific scrips only? At present, we have enabled select shares for trading in the margin segment. Only those stocks, which meet the criteria on liquidity and volume have been considered for margin trading. Technically, the stocks having low impact cost have been considered for margin trading. Technically, the stocks having low impact cost have been included.

In the "Buy" and "Sell" page, you need to opt for "Margin" in the "Product" drop down box. All other order parameters remain the same.

In case you face any problem, you please refer to the "Help" section on the page. Can I short sell the shares i. Yes, you can short sell the shares in margin segment. Do you block the shares in DP when a sell order is placed in the margin segment? Unlike the sell order in the cash segment, there is no block on your holdings in the demat account. How much margin would be blocked on placing the margin order?

Initially, margin is blocked at the applicable margin percentage of the order value. For market orders, margin is blocked considering the order price as the last traded price of the stock. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order.

It may not be so. Margin percentage may differ from stock to stock and settlement to settlement based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective stock besides the general market conditions.

What is meant by 'squaring off a position'?

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hi I am new to icici direct my question is I placed a order cash buy by selecting day as option as u told if day selected do I need to sell that share that day itself or I can sell whenever I want please guide,and what is t+2 days and all please explain(if I buy I need to wait 2days to sell immediately I can sell?). Hello Friends, I am doing options trading using ICICI direct. Thanks to our lovely friends on Mudraa. Till date I am only buying options and then selling them (using optons "square off" in icicidirect options page and then putting selling price). How to do day trading in icicidirect. I bought some shares using gestomedula.tk 2 days ago. I am still not able to allocate them to sell. Allocation screen shows that I don't own any Intraday cash tradingicicidirect.