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Frequently Asked Questions

What is margin financing?

IGI Securities
Margin financing is expected to replace COT by end of this year. Under margin financing, an investor would be eligible to avail financing from a brokerage firm against the securities deposited by him. In other words, a brokerage house would extend a ‘credit line’ to its client which would be determined by retaining a margin against the value of securities held.

What are the margin requirements, while trading under Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
Currently 50% Initial Margin is required, for taking any position under Margin Financing and once the positions are taken then 40% Maintenance Margin is required. See similar questions...

What is Share Margin Financing?

limtan.com.sg Online Trading - FAQ
Share Margin Financing is a facility that allows you to increase your financial power and boost your investments in stocks and shares. All you need to do is to place either cash and/or marginable securities as collateral for the credit facility applied for. See similar questions...

What are the rates for credit balances and margin financing?

FAQs.
Currently debit interest rate applied to both Cash and Margin Accounts opened with DBS Vickers Online Hong Kong is Hong Kong Prime Rate + 3% (subject to change without notice). See similar questions...

Can I trade in Derivatives, even if I am registered for Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
Yes. You can trade in derivatives segment, through Kotak Securities.com. Limits will be calculated accordingly to the product and the multiple applicable. No. Stocks cannot be provided as security for availing limits for trading for Margin Financing; the same can be used as margin for taking Non-Margin Finance Positions and derivatives limits. Only cash margin is allowed and hence, client will have to transfer funds to avail this facility See similar questions...

Can I use Margin Financing for Derivative trading?

Margin Funding/Financing with Kotak Securities Ltdg
Yes. Same Base capital can be used for trading in anyone of the segments, but limits available would be as per multiple applicable The shares that have been bought under Margin Financing and subsequently sold would be first credited and then debited from your Demat account as per normal pay in and pay out. However, please note, incase you have sold under Margin Financing and bought under non-Margin Financing in the same settlement, then the net position would reflect in your Demat Account See similar questions...

What are the benefits of using Margin Financing (MF) facility?

Margin Funding/Financing with Kotak Securities Ltdg
Kotak Securities provides funding for the shares bought by you, you need to pay only part of total value of shares bought. E.g. If you buys Infosys worth Rs.1,00,000/-, you are supposed to pay 50%* i.e.Rs.50000/- and balance Rs.50000/- will be paid by Kotak Securitieson behalf of you at the time of pay-in. See similar questions...

Can I trade in all scrip's using Margin Financing (MF) facility?

Margin Funding/Financing with Kotak Securities Ltdg
You can trade in all the scrips that are approved by SEBI and Kotak Securities Ltd. The list of scrips, which are covered under Margin Trading Facility for NSE and BSE, are enclosed herewith. Any scrip, which is not included in the said list, shall not be funded but will be available for non-MF positions where clients will have to clear debits in T+2 days. See similar questions...

Can I sell 100% shares on the next day, bought on previous day under Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
Yes. You can sell 100% shares the next day, of the stock bought on the previous day by selecting "Margin Finance" as 'Order Type'. See similar questions...

What are the brokerage charges for buying/ selling using Margin Financing facility?

Margin Funding/Financing with Kotak Securities Ltdg
Brokerages are same as applicable for normal delivery/ square off transactions (slab based). However, for calculating the Final Delivery and Square off trades for the purpose of brokerage, the Margin Finance as well as Non Margin Finance trades will be considered. See similar questions...

How can I avail Margin Financing facility & what are the documentation formalities?

Margin Funding/Financing with Kotak Securities Ltdg
For availing the Margin Financing facility, you need to register as prescribed by SEBI. For this, you need to fill the prescribed documents and also complete the MAPIN Registration. After the MAPIN registration, you would be given 'TIN No.' by the concerned authorities. MAPIN is mandatory if you want to avail the Margin Funding Facility. For registration details, you can contact your nearest Kotak Securities branch. See similar questions...

How will my limits for trading to be calculated, while using Margin Financing facility?

Margin Funding/Financing with Kotak Securities Ltdg
For Margin financing facility margin requirement would be 50% i.e. 2 times exposure is available. It is calculated as the Base Capital less MF utilization. See similar questions...

Can I sell the shares by Marking Delivery previously bought under Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
No. Shares bought under Margin Financing cannot be sold as Delivery Mark. Shares bought under 'Margin Finance' can be sold under 'Margin Finance' only. See similar questions...

Can I sell the shares as 'Normal', previously bought under Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
Yes. Shares bought under Margin Financing can be sold as 'Normal'. In this case limits will be blocked by the system while placing the order and shares will get adjusted for the pay-in if the shares are there. In this case risk totally lies with the customer itself. See similar questions...

Are DP charges applicable, while using Margin Financing facility?

Margin Funding/Financing with Kotak Securities Ltdg
Yes. DP charges will be applicable as per the normal schedule. Please click here to view the schedule of charges. See similar questions...

Can I sell the shares by using BNST-G facility previously bought under Margin Financing?

Margin Funding/Financing with Kotak Securities Ltdg
No. Shares bought under Margin Financing cannot be sold as BNST-G. Shares bought under 'Margin Finance' can be sold under 'Margin Finance' only. See similar questions...

What is Margin?

FAQs
Margin basically doubles your trading dollars with stocks and index funds. A 5% gain turns into a 10% gain if you use some of that extra trading money. If you have a bad trading system, you will lose money twice as fast. If you have a good system, you will make money twice as quick. Most brokerages need $2000 to initially start up a margin account. New margin rules: The SEC mandates that if you are a "pattern daytrader", you must have $25,000 in your account. See similar questions...

What is a margin call?

California Securities Fraud Lawyers: Corporate Transactions,...
Stock brokerage firms permit their credit-worthy investors to engage in "margin" trading. In a very real sense margin trading is similar to using your credit card to gamble at a Las Vegas casino. Simply put, margin trading amounts to investing with borrowed money, pledging your portfolio as security for the loans. If the market takes a downward turn and the value of your portfolio dips, you will receive a "margin call" for additional collateral to secure the obligation. See similar questions...

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