Normal queries on Margin Related
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.
When is a margin shortfall penalty charged?
A margin shortfall penalty is charged when the margin available in a trading account falls below the margin required for maintaining open positions, and the deficiency is not rectified within the prescribed time. This penalty is imposed to ensure ...
What happens if fail to maintain margin?
When trading through the Margin Trading Facility (MTF) or Futures & Options (F&O) segment, investors are required to maintain the prescribed margin at all times. If the available margin falls below the required level, the investor may be required to ...
Are intraday sell transactions considered under the T+6 risk selling if they are later converted into delivery-based sell orders?
No. Please note that under the T+6 risk selling, intraday sell transactions will not be considered, even if such trades are later converted into delivery-based sell orders.
Can IIFL square off If I have any position in equity and scrip moving towards upper freeze or lower freeze ?
Yes. Reason for doing square off of short position is to avoid short delivery in the exchange and to avoid auction penalty. IIFL tries to square off short positions of non derivative scrips before price on the upper side. There might be chances that ...
Why Physical delivery position square off by RMS on expiry day ?
RMS squared offs ITM options & future stock contracts to avoid any physical delivery settlement by EOD. However for any stock option contract RMS square offs 2 strike up or down considering ITM contract to avoid any volatility risk.
Why have I receive margin pledge mail from CDSL/NSDL depository ?
Effective from 1st August 2020, to avail margin on your stocks purchased, the same has to be pledged. In the new pledge system, the stocks don’t leave the investor’s demat account, instead a pledge is marked in favor of the broker. Only incase if you ...
Is there any margin on selling shares in Cash Segment?
Yes, margin is applicable for both buy and sell transactions in the Cash Segment. As you are aware, settlement of transactions in the Cash Segment is on T+1 day basis, accordingly the upfront margin of the trades done on T’day should also be ...
In whichever form the margin is provided to IIFL, is there any impact on Delayed Payment Charges?
In Equity Derivative Segment and Currency Derivative Segments IIFL is allowed to accept approved securities from clients for margin purposes. However, IIFL can lodge their own securities only to the Clearing Corporation and not the clients’ ...
What other restrictions are kept on IIFL trading platform?
For the safety of clients and to avoid liquidity concern, manipulated prices, punching errors, IIFL has restricted some trading patterns on TT. However in exceptional circumstances client may be allowed trade in such scrip’s / contracts through ...
How margin call is initiated?
Margin Call – Clients are requires to maintain minimum upfront margin as described by exchange and IIFL Risk policy at end of day in approved stocks of IIFL. For unapproved stocks client need to pay 100% margin. Failing to this, clients are marked in ...
How much exposure is allowed?
IIFL allows up to 5X of exposure in equity segment depending upon IIFL defined category of the scrip and product of the order. Please check the category of scrip and exposure allowed before placing the order. Exposure also differs for delivery and ...
How much haircut is applied for each category of stocks?
Please find haircut category as below: Stock Category Applicable Haircut E Higher of 15% OR Exchange Margin (VAR + ELM + ADHOC) A Higher of 20% OR Exchange Margin (VAR + ELM + ADHOC) B Higher of 30% OR Exchange Margin (VAR + ELM + ADHOC) C Higher of ...
Which type of securities are acceptable by IIFL?
IIFL accept listed equity, Open ended Mutual funds (subject to IIFL scrip categorization). Collateral stock, Fixed Deposits and Bank guarantee are accepted for the derivative segment SPAN margin.
How available margin is arrived?
Margin = Adjusted Ledger Balance + after hair cut value of stocks Adjusted ledger balance =Ledger balances + Fixed deposit / Bank Guarantee + 1.5 times of Undelivered value of Shares To check your current Available Margin, Click Here
What is Margin?
1.The net funds utilized for your executed equity intraday, F&O positional /intraday trading & delivery orders. The amount blocked for your Open orders yet to be executed. 2.Whenever you sell your shares or open F&O positions, the margin used will be ...