The limit arisng out of securities deposited as margin changes every day and sometimes during the day also. Why?
This is because it is dependent on the valuation of the securities deposited as margin. The F&O limit arising out of securities deposited as margin is arrived at as the summation of : (Quantity of the stock deposited * Valuation Price of the stock ) * (1 – Haircut% for the stock) Generally, the closing price of a stock on the previous day is specified as the valuation price. Hence, the limit arising out of securities deposited as margin is recalculated every day when the new closing price for the securities is received. Limit may also change on account of changes in haircut% effected by ICICI Securities. In some cases, the above changes may be carried out during trading hours also. These may lead to either an increase or a decrease in the limit arising from securities deposited as margin. ICICI Securities also reserves the right to withdraw the limit arising from any one or more of securities deposited as margin without assigning any reason. Where the limit arising from securities depo
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