What is the margin that is charged on the fresh order?
Margin in case of fresh order is charged to the extent of maximum possible loss that you may incur plus a minimum margin calculated at the minimum margin % specified for the stock in the stock list page. It is calculated as {(Weighted average price of fresh order- limit price of cover order)* Quantity of shares} + {(Weighted average price of fresh order * quantity of shares) * minimum margin% for the stock} Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price. Assume you take a buy position for the fresh order of 1000 shares at current market price of Rs 100/-. Simultaneously you also place the Sell (cover order) of 1000 shares as Limit price Rs 90/-SLTP Rs 95/-.The minimum margin percentage for the scrip is 10%. In this case margin amount would be blocked as (Weighted average price of fresh order * quantity of shares)* minimum margin% +( weighted average price of fresh order – limit price of cover order)* quantity of sh
