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What are the charges for e-margin in AxisDirect?
Buy More Pay Later (E-Margin) product attracts interest rate of 18% per annum on the funded amount on pro-rata basis. In the above example, for a 1 month period on a funding of Rs 30,000; interest payable will be Rs 450.
What is e-margin product in trading?
Trade with margins as low as 25% and carry forward your positions upto 30 days. You can choose to convert to delivery and get the stocks in your demat account or square-off anytime before expiry.
What is difference between margin and e-margin?
E-margin facility is offered only on eligible stocks traded on stock exchanges. Margin amount is taken in the form of cash, cash equivalent or eligible shares as accepted by HDFC Securities.
What is margin required in AxisDirect?
Visit New margin requirements in India Stock Market to know more....AxisDirect Margin.SegmentTrading MarginEquity Delivery1x (100% of trade value)Equity Intraday5x (Up to 20% of trade value)Equity F&O1x (100% of NRML margin (Span + Exposure))Currency F&O1x (100% of NRML margin (Span + Exposure))1 more row•Apr 24, 2020
Is margin trading a good idea?
Margin trading is risky since the margin loan needs to be repaid to the broker regardless of whether the investment has a gain or loss. Buying on margin can magnify gains, but leverage can also exacerbate losses.
What happens if you lose a margin trade?
You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities in your account.
Can I sell margin shares same day?
Yes you can. Margin Trading positions taken today can be seen under Positions for Equity and can be squared-off from there.
Are 20% margins good?
An NYU report on U.S. margins revealed the average net profit margin is 7.71% across different industries. But that doesn't mean your ideal profit margin will align with this number. As a rule of thumb, 5% is a low margin, 10% is a healthy margin, and 20% is a high margin.
Can I convert margin account to cash account?
At this time, accounts cannot be converted. For example, a cash account cannot be converted to a margin account or vice-versa.
What is e-margin with example?
E-Margin is available only in equity segment not in F&O segment. Example: You buy 100 shares of ABC @ Rs. 2500 on Monday. You have an option to square off the position or convert to delivery till T+275 day or as applicable (i.e. 275 Trading days).
What does e-margin mean?
E-Margin is a leveraged trading facility. You can create positions under this product that can be squared off or converted to delivery (C2D) till T+275 day (T= being Trade date) on or before the specified time.
What is e-margin order?
E-Margin is a leveraged trading facility. Positions created under this product can be squared off or converted to delivery till T+365 trading days (T=Trade date) on or before the specified time i.e. 02:45 pm. Unlike for a 'Cash' order, you do not have to pay the full order value for E-margin orders.
What is e margin with example?
E-Margin is available only in equity segment not in F&O segment. Example: You buy 100 shares of ABC @ Rs. 2500 on Monday. You have an option to square off the position or convert to delivery till T+275 day or as applicable (i.e. 275 Trading days).
What is the meaning of margin product?
In the business world, margin is the difference between the price at which a product is sold and the costs associated with making or selling the product (or cost of goods sold). Broadly speaking, a company's margin is its ratio of profit to revenue.
What is product margin?
Margin (also known as gross margin) is sales minus the cost of goods sold. For example, if a product sells for $100 and costs $70 to manufacture, its margin is $30.
What is e margin in Zerodha?
You can trade using Margin intraday square off (MIS) and Cover Order (CO) for equity to get up to 5 times (20% margin) leverage for intraday. So, if you have ₹1 lakh, you can buy or short stocks for intraday up to ₹5 lakhs.
How to tell if a stock is overpriced?
You can tell if a stock is overpriced or undervalued by comparing the p/e ratio of the company today, to the average p/e ratio of the company over the last 3 to 5 years.
How to calculate p/e ratio?
To calculate this p/e ratio take the current price of the stock and divide it by the company’s earnings for the prior 12 months (on a per share basis). For example, if a stock is selling for $35 a share and it’s earnings for the last 12 months is $3.50, the p/e is 10. Many experts including Warren Buffett recommend never investing in a stock that has a p/e of 20-25 or higher. In March of 2020, you could have bought Apple and Disney, and many other great stocks at a p/e of under 20, now the p/e on these same stocks is well above 30.
What happens if you use margin?
But what if you use margin? If you will use margin, your potential money to trade will multiply by 5 times. ( kinda loan from your broker for 6 hours, where your 20,000 will be treated as security money)
What to look for in a stock list after a list?
After you have your list you then need to look at the financials. The number one question is: Are the company’s earnings consistently growing, and will they continue to do so over the next 5–10 years? The stock price will follow the earnings.
What is the difference between 2R and 22INR?
You are left with 22INR, which is your capital and 2Rs is your profit.
How to get a steady return on an index fund?
The “secret” is to buy an index fund that tracks the market and hold it. That’s it. You’ll get a nice steady return over a long period. It may have some annual ups and downs, but historically it has grows over time.
What is margin in trading?
Margin is basically a tool offered by your broker. It changes from share to share.
What is the difference between commodity margin and currency leverage?
The Commodity Margin Calculator provides upto 1x margin funding on options and 1x in futures, while Currency Leverage Calculator provides 1x exposure for Futures & 1x for Options.
What are the three possible investment segments for futures?
There are three possible investment segment for futures, i.e. the currency futures, the equity futures and commodity futures , and the first two segments have the same margin rate of up to 1x. Commodity has a leverage of 1x.
How much leverage can you get with both equity options and currency options?
So, it doesn’t matter which segment of investment you choose, you can avail for up to 1x leverage for both.
What is Axis Direct Margin Calculator?
Axis Direct Margin Calculator is an online tool which will help you calculate Exposure provided by Axis Direct for different segments like Intraday, Delivery, F&O, Currency & Commodity.
What is the new pledge rule?
Answer – The new pledge rule signifies that the trader will not be able to avail for the margin benefit until and unless he or she pledge shares against it. Pledging is now mandatory, where the shares will stay back in the trader’s account as per the new rule.
How much leverage can you get in intraday?
So, willing to trade in intraday segment, you can avail for as much as 5x leverage, as it is provided by the stock broker.
What is the designated rate of 18% GST?
Answer – There is an interest taken on the amount of exposure provided, as it is a loan lent by the individual. So, the designated rate is at the rate of 18% + GST, and the trader is obligated to pay it, alongside the principal amount or the amount of loan taken.
How to do Intraday Trading in Axis Direct?
For starting Intraday Trading in Axis Direct, all you have to do is to open an account with Axis Direct. The steps for doing the same are as follows:
How to add scrips to a trading terminal?
Open and login to the trading terminal. Click on the market watchlist section and you have to add the scrips.
What is intraday trading?
Answer – Unlike other segments of trade where the shares are kept in account and sold when the market is in best of favor, intraday trading requires a trader to buy and sell the share in the very same day. At Axis Direct traders have been having the luxury to not just trade in bulk without worrying about brokerage but also safe and secure transactions with every trade.
What is the brokerage charge at Axis Direct?
Answer – Brokerage charges at Axis Direct highly stand in the support of traders who trade actively and in bulk, the brokerage charge or intraday at Axis Direct is around 0.05%.
How to open a Demat account at Axis Direct?
Hence in order to open a DEMAT account at Axis Direct, traders are expected to submit an application and their vital documents which are asked by the broker. Once the verification process is done, customers will receive their log in credentials through email.
What is flat brokerage plan?
There is a flat brokerage plan which assists the intraday traders to trade bulk volume of shares and pay reasonable brokerage. The wide reach of the firm is another benefit for the clients.
How much leverage is in Axis Direct Intraday?
The Axis Direct Intraday Margin is 10 times as the maximum margin. The Axis Direct Intraday Limits will provide you leverage up to 6 times the amount you have in the trading account.
What happens when the LTP of Maruti Suzuki reaches Rs 1450?
In the above example (B) when the LTP of Maruti Suzuki reaches to Rs 1450 , the Sell order will be triggered as a market order in the market & the same will get executed at the best available rate in the market.
How to use collateral limit in Demat?
The collateral amount as per the applicable collateral valuation % will be added to your limits. You can place your shares as collateral from the following path: Limits-> Demat Balance-> Hold Type-> Collateral.
What is NLV in stocks?
Net Liquidation Value (NLV): It is a measure of your portfolio risk and displays the current net worth of your portfolio if it were to be liquidated. It also indicates the notional (unrealized) profit/loss position of your portfolio.
What is trigger price?
A trigger price is the threshold price that needs to be defined with a stop loss order. Once the market price reaches or crosses the trigger price, the order will be released to the exchange for execution. It should be higher than the Last Traded Price (LTP) for a buy order and lower than the LTP for a sell order.
What are the two types of market orders?
The two types of orders are Limit and Market Orders. Limit Order - You can specify the maximum price per unit in case of a Buy order and the minimum price per unit in case of a Sell order. Market Orders - Market Orders on the other hand get traded differently on NSE and BSE.
What is derivative margin?
Derivative Margin - Derivative Margin represents the Limits utilized by taking Futures and Options position.
What is equity cash?
Equity Cash - Equity Cash represents the limit utlized by trading in Cash product.
What is Axis mobile?
Axis mobile application allows you to trade in equity and derivative through your smartphone. The mobile application will enable you to view live quotes of any stock and do more analysis through dynamic looking live charts. Through the portfolio feature, you get a complete view of your portfolio across Equities, Mutual Funds, ETFs & Derivatives.
What is broker services?
Services provided by the broker for investing in other financial assets such as Mutual funds, Insurance, Bonds etc.
What is Axis Direct?
Axis Direct. Axis Direct is the brokerage arm of one of the biggest banks, Axis bank. Established in 2011 as a full-service broker, Axis Direct enjoys a lot of trust in the market because of its parent firm, Axis bank. Axis Direct has come a long way since and today has more than 75 branches in India.
What is Axis Swift trading?
Axis Swift trade is a web-based trading platform, which requires no installation or download. All the trading can be done on a specific link. They provide automatically refreshed live streaming quotes. In short, it includes the functionality of a trading terminal in a web browser.
What is a broker rating?
Ratings are provided based on customer service, usability, charges and overall average. Reviews are based on positive and negative aspects of the broker that help you understand this broker better.
What is Portfolio Tracker?
Portfolio tracker and real streaming of quotes to monitor your entire financial portfolio.
What are extra features of a broker?
Extra features provided by the broker at little or no extra cost. Like research reports, SMS alerts etc.
Axis Direct Margin Trading
As the brokerage industry is getting advanced and more competitive, many brokers worldwide provide high margin and leverage incentives to allow investors to have much more significant exposure on their trades. These tools will enable an investor to take a much more prominent position on their trades and aim for a greater return.
Axis Direct Margin Calculator Report
After clicking on calculate, you can find a comprehensive report for the margin/leverage offered. In this report, you can find,
What happens when the LTP of Maruti Suzuki reaches Rs 1450?
In the above example (B) when the LTP of Maruti Suzuki reaches to Rs 1450 , the Sell order will be triggered as a market order in the market & the same will get executed at the best available rate in the market.
What is market order in NSE?
Market Orders in NSE: This is an order to buy or sell securities at the best price present in the market at the time it is matched by the exchange. In NSE, all unexecuted market orders become limit orders at the last traded price.
What is trigger price?
A trigger price is the threshold price that needs to be defined with a stop loss order. Once the market price reaches or crosses the trigger price, the order will be released to the exchange for execution. It should be higher than the Last Traded Price (LTP) for a buy order and lower than the LTP for a sell order.
What is the protection % in BSE?
It is an option available only for orders placed on BSE. While placing a market order in BSE, you can define the protection %. Protection % ensure s that the actual traded price of the order do not deviate more than the defined % from the Last Traded Price when the order hits the market i .e.If you place a Buy order at Market price for 100 shares of Axis Bank with a protection of 20% and the last traded price (LTP) is 1000 at the time order hits the market, then the order will be placed as a limit order of Rs.1200 (1000 + 20 % of 1000) and will get executed at that limit price or better.
What is the validity of an order?
Validity determines how long the order remains in the order book. The validity can be Day or IOC (Immediate or cancel). Immediate or cancel is a security order type instructing that the quantity of the buy or sell order is to be executed immediately. Once entered, this type of order must be executed immediately. The order can (but does not have to) be executed in full. If it cannot be executed immediately or fully, the pending part gets canceled (a partial execution is generated) by the market. e.g- Mr. A placed a buy order for 100 shares of Axis Bank with order type as IOC. When the order went to the exchange, order for buying only 89 shares got executed. In this case, the pending part (100-89=11 shares) will get cancelled. A Day order is an order, which is valid for the day on which it is entered. If the order is not executed during the day, the system cancels the order automatically at the end of the day.
What is stop loss market?
Stop loss market orders are stop loss orders that use stop market orders as their underlying order type. Stop market orders are placed with a specific trigger price, and if the market price/LTP reaches the above mentioned specific trigger price, the order will be sent to exchange and will be executed as a market order.
What are the two types of orders?
The two types of orders are Limit and Market Orders.
