Is margin blocked on all margin orders?
No. Margin is blocked only on margin orders, which are in the nature of building up fresh positions. Margin orders which are placed to square up existing open buy/sell position (called ‘cover orders’) shall not attract margin. For example, if you have a buy position (executed trade) of 100 shares in Reliance in margin and now place a sell order for 100 shares in Reliance in margin, the sell order would not attract any margin as it is in the nature of a cover order. However, if you place a sell order for 150 shares, the fresh component of the order i.e. 50 shares would attract margin at the applicable margin rate. Such orders can be called ‘partial cover order’. Please note that cover order is recognized only against the executed open position and not against pending order. For example, if you have a pending buy order of 100 shares in TISCO and want to place a sell order of 100 shares in TISCO at a higher price, the sell order would not be recognized as a cover order and shall according
