Is there any impact on the limit on execution of a buy/sale order in margin segment?
If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked 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 it is an execution of a cover order (order which would result into square off of an existing open position in margin), the following impact would be factored into the limits: a) Release of margin blocked on the open position so squared up. b) Effect of profit & loss on the square off of such a transaction.
If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked 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 it is an execution of a cover order (order which would result into square off of an existing open position in margin), the following impact would be factored into the limits: a) Release of margin blocked on the open position so squared up. b) Effect of profit & loss on the square off of such a transaction. c) The released margin and effect of profit and loss will reflect under “Limit” of the trading page on the website.
