Margin refers to the amount of money or stock collateral that is required upfront to place an order. Earlier each broker had their own margin system providing different leverage to different clients to be competitive. With the Peak Margin implementation by SEBI, this has become a level play ground for all brokers and it is uniform now.
To understand, how much funds are required to place an order, you will be required to understand the various product codes available in your order form. Click here to understand the product codes
Details of Margin Required
Product Code | Segment | Margin Required |
Under all Product Codes | All Derivatives Segments | 100% of SPAN +Exposure margin including additional margin if any |
CNC in Infini Trading Platform | Cash Segment | 100% of Traded Value |
NRML in Infini Trading Platform and CNC in Rocket | Cash Segment | 50% of the Traded Value of selected stocks |
MIS/ Cover Order /Bracket Order | Cash Segment | VAR+ ELM or 20% of Traded Value whichever is higher on selected stocks |
Margin Trade Funding (MTF) | Cash Segment | VAR + 4.5 times of ELM for Group 1 F&O stocks and VAR +6.5 times ELM for Group 1 Non F&O stocks with a minimum 50% of traded value |
VAR and ELM are the terms to measure risk of a stock and they are readily available in NSE website.
Various Product Codes in Trading Terminal
Margins - Equity/Currency/Commodities