How does my limit get impacted whenever a buy/sell order is executed?
If the Buy/sell order placed by you is a fresh order (i.e. an order which would result into building up an open position), on execution of the order, the margin blocked at the time of order placement gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin. If the Buy/sell order placed by you is a cover order (order which would result into square off of an existing open position), on execution of the order, your Limits would be adjusted for the following: . Release of margin blocked on the open position so squared up . +/- Profit/Loss incurred on Square off . – Applicable taxes. If the Buy/Sell order placed by you results into building a spread position, on execution of the order, your Limits would be increased with the amount of differential margin released. For example, you are taking an open buy position for 1 lot of 1000 qty in FUT-USDINR-27-Aug-200
