uTrade AlgosMargin requirements for corporate trading accounts are set by the Securities and Exchange Board of India (SEBI) and enforced by brokerage firms like Share India Securities Limited. While SEBI defines the minimum margin requirements, brokers may impose additional margins based on their internal risk assessment.
Here’s a breakdown of margin requirements for different types of trades:
Cash Market (Equity Segment)
Upfront Margin: SEBI mandates a minimum margin of 20% of the transaction value when trading in the cash market. This means you need to have at least 20% of the total trade value upfront to execute the trade.
Futures and Options (F&O) Segment
- Initial Margin: This includes the SPAN margin and exposure margin, which are calculated by the exchange based on the risk and volatility of the specific contract.
- Maintenance Margin: A certain percentage of the initial margin must be maintained to keep your position open.
Commodity Trading
Initial and Maintenance Margins: These are set by the respective commodity exchanges and vary depending on the volatility and liquidity of the commodity being traded.
Intraday Trading
Leverage: SEBI regulations and Share India’s internal policies determine the extent of leverage available for intraday trading.
It’s important to stay within these margin limits to manage your trading positions effectively. For more detailed or specific information about your corporate account, feel free to reach out:
- Call: 1800 203 0303
- Email: support@shareindia.com
We’re here to help you navigate your corporate trading journey!