Why does nobody discuss margin shortfall in MTF?
At what %shortfall is MTF margin-call triggered?
I didn’t even see this in Kotak/mStock web site. They’re simply selling the upside state of affairs .
Dhan has defined their system. It usually relies on the VAR and relies on the RMS additionally. It varies from dealer to dealer. I really feel 2x occasions is the utmost whole margin to get uncovered to and be on a safer aspect. Although we are able to go upto 5x with varied brokers additionally. Nothing is assured in market😉
I’m with ICICI Direct & they’ve this idea of set off value in case your place begins going in opposition to you.
If an extended place drops beneath the set off value, count on it to be squared off by the dealer.
It makes life easy.
P.S. In addition they provide you with a devoted “relationship supervisor”. You’ve a direct line to him/her. As talked about earlier on this thread, ICICI Direct has nailed the “service” side.
What is that this set off value?
Let say, I’ve 100 and Kotak permits me 5x, that’s 500If my place goes 10% in opposition to me, ie. 500 turns into 450, my preliminary funding goes down 50%, ie. my 100 turns into 50. On this state of affairs when would be the margin name triggered – at what %fall?
Guys, I’m new to investing and I’ve a small doubt, please bear with me if its foolish since I very lately found MTF.
I’ve had 25% returns since previous 1 yr, so I wish to avail some margin to commerce.
My query is how will we pay this curiosity? Do we’ve got to pay further cash each month/quarter/yr much like Zerodha LAS (Mortgage Towards Safety)OrDoes it get mechanically deducted from our margin capital?
For instance, I’ve 25L and would like to commerce with 1cr as an alternative. However servicing the 75L mortgage’s curiosity by way of money could cause me liquidity points.
It will likely be useful to listen to your ideas
There may very well be a write up on ICICI direct about how they calculate this. I haven’t made an effort to examine it because it doesn’t matter.
They clearly show the set off value in opposition to each place, so you recognize when THEY are more likely to sq. off IF YOU DONT.
That’s all I must know as a dealer.
I don’t learn about different brokers, with ICICI they deduct MTF curiosity out of your account money stability.
When you run into unfavourable, you possibly can both promote part of your open place or add additional cash to your account.
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If you’re new, Would recommend to maintain MTF apart for few years. Expertise a full cycle from bull to bear to sideways. Then u can plan. 1 crore u can commerce , but when your portfolio falls by 5% , 20% of your precise capital shall be gone. Attempt to handle threat. If you’re assured, then strive it.
To reply your query: Its a easy curiosity charged and calculated on day by day foundation. Depends upon dealer guidelines.
MTF seems enticing, however its a double edged sword like all leveraged devices.
Set off value or liquidation value is strictly what I’m searching for.
Is there a solution to see the record of securities accessible for margin buying and selling on icici direct with out creating an account first?
For instance, there are a few ETFs the place I wish to have 1:1.5 leverage. Can I learn about these upfront? I attempted looking however I can’t see the record not like dhan/mstock/kotak
Yeah as others have stated margin buying and selling is a double-edged sword.Threat administration is high precedence right here.
1.3x to 1.5x margin feels a lot safer to me.
not even 2x as we’ve got seen markets with greater than 50% as max drawdown
Anyway, I’ve tried Dhan/mstock
dhan:
A excessive rate of interest appears to remove the sting you get with margin buying and selling with comparatively protected scrips.
Has a superb record of srips for mtf & pledging.
a wealthy app with good options.
Can commerce straight on tradingView (love this)
mstock:
low rate of interest
There are fewer scrips in comparison with Dhan.
they hardly clarify the upkeep margin & have sparse documentation on margin calls.
inferior app/ui-ux expertise
When you share the etf names, I’ll let you know immediately in regards to the leverage accessible on ICICI.
One other factor I’ve observed on these boards is individuals staying away from ICICI due to the upfront 9,999 one time price.
They’re one way or the other okay paying mStock 9.99 perpetually vs paying ICICI 9.69 + one time 10k.
9.69 vs 9.99 is a big distinction (in keeping with me). Even when you add brokerage 0.07 it’s nonetheless not even shut (when you commerce SIZE).
Anyway, trying ahead to these etf names. Let’s see what icici has on these.
Click on HERE
Enter your ETF title and see the leverage accessible on icici direct.
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Hello Om… Does ICICI maintains a seperate ledger for buying and selling acct? I’ve heard that any buying and selling acct associated fund credit score/debit is straight made into linked saving checking account… Are you able to pl verify ?
By money stability you imply saving account stability ? Additionally do they deduct curiosity day by day/weekly??
Let’s say I’ve 1lakh rupees and I wish to purchase NiftyNext50 ETF (JrBees)Assuming 20% draw back, what’s a protected margin a number of that I can purchase with out getting margin known as?
