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What is a Margin Order ?

April 26, 2017margin

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Posted

What is a Margin Order ?

2 Answers

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Posted

Margin order basically means that you propose to square off the position before the close of the market and do not intend to settle the transaction by delivery. In case you place a buy order only the applicable margin percentage shall be blocked from the available buying power, and in case of sell order shares shall NOT be blocked from your demat account instead only the applicable margin percentage shall be blocked from the available buying power. Similarly, when you close the said margin position by placing an opposite order then further margins shall not be blocked from your buying power and the blocked margins shall be released when the open position is closed (fully or partially). The realized profit and or loss on the closed positions shall be reflected in your buying power.

0

Posted

Margin order basically means that you propose to square off the position before the close of the market and do not intend to settle the transaction by delivery. In case you place a buy order only the applicable margin percentage shall be blocked from the available buying power, and in case of sell order shares shall NOT be blocked from your demat account instead only the applicable margin percentage shall be blocked from the available buying power. Similarly, when you close the said margin position by placing an opposite order then further margins shall not be blocked from your buying power. The realized profit and or loss on the closed positions shall be reflected in your buying power.