What is criteria for Broker Margin Funding?
For old clients :- For activation of BMFD product you need to have minimum networth of Rs.25,000/-.
For new clients :- It will get activated by default.
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What is Broker Margin Funding ? / What is Margin Trading Facility (MTF)?
Broker Margin Funding (BMFD) is a product which will allow you to take leverage positions in capital markets segment to purchase securities with the help of amount borrowed from IIFL against securities purchased.
What are the important points to be remember before we take BMFD product?
1.Clear the payment of purchase of unapproved stocks and stock purchased in BSE within T+6. 2.Clear dues towards Brokerage, statutory charges, Interest, Intraday losses, Derivative segment losses as debit arising due to these transactions will fall ...
What is margin liquidation?
Margin Liquidation is the forced sale of securities or closure of trading positions by a broker when an investor fails to maintain the required margin, resulting in a margin shortfall that is not rectified within the prescribed time.
What is Margin Pledge?
Margin Pledge is a process in which users can pledge their stocks to the broker in return for a collateral margin that can be utilized for trading. Let’s understand this better via an example; suppose I am an investor who has shares of RIL, TCS and ...
What is the Peak Margin?
SEBI vide Circular Ref. SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020 reiterated that the applicable upfront margins are required to be collected from the clients in advance of the trade. The peak margin is not a new type of margin but it’s ...