Is there any impact on the trading limit on execution of a buy/sale order?
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), 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 an execution of an order resulting into building up spread position, impact on limits would be in terms of release of differential margin. For example, you are taking an open buy position for 10 MT in NCD-FUT-RBRRS4KTM-20-Jan-2006 @ 6469 and IM is 20%. Rs 129380/- would be blocked as an initial margin. Thereafter you take a sell position for 10 MT in NCD-FUT-RBRRS4KTM-20-F
