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
Under all Product Codes
All Derivatives Segments
100% of SPAN +Exposure margin including additional margin if any
CNC in Infini Trading Platform
100% of Traded Value
NRML in Infini Trading Platform and CNC in Rocket
50% of the Traded Value of selected stocks
MIS/ Cover Order /Bracket Order
VAR+ ELM or 20% of Traded Value whichever is higher on selected stocks
Margin Trade Funding (MTF)
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.