Combined Margin Requirements
Margin Calculators Offered by Wisdom Capital
For trading in the stock market, the role of margin and leverage is of utmost importance. In the context of trading, margin means the exposure or leverage that enables a trader to trade more than the available funds in its trading account.The exposure is provided on the basis of funds available in the account and the brokerage plan a trader has opted for.Margins and leveragesareusuallythe discretion of a broking house. In Indian financial markets, margin percentages and leverage ratios vary from broker to broker;Usually, these are also a function of margins defined by stock exchanges.
In order to aid traders in calculations related to margins, most every stocks broker offer a set of margin and leverage calculators. These calculators take into account quite a few variables such as stamp duty, STT, transaction charges etc. while calculating margins. The margins calculators offered by the Wisdom Capital are best in the industry.All margins including SPAN, exposure,VaR and Net Premium can now be calculated easily using the margin calculators on offer at Wisdom Capital’s calculator pages.
Wisdom Capital offers margins and leverages based on products type, segment, and brokerage plans. Product type MIS/BO/CO are used for intraday trades only and NRML product type for carry forward position(s).
Description of Leverages and Margins Based Upon SEGMENTS
Wisdom Capital is providing up to 5 times leverage in intraday NSE Equity in product type MIS and BO as per the category of script you are trading in.
For detailed list of scripts, click here
Wisdom Capital offers leverage up to 1 X in product type BO and CO and MIS in NSE Future and Option Writing/Selling.
In Option Buying up to 1 X leverage will be available in BO and full premium will be required in MIS.
For script wise calculation, click here
We are offering leverage of up to 1 X in MIS and BO in NSE Currency segment.
For details, click here
In MCX commodity segment, up to 1 X leverage is provided in BO and CO, and in MIS product type.
For script wise leverage, click here
An Explanation to the Different types of Product Types in Trading
MIS stands for Margin Intraday Square Off. The orders placed in this product type are valid only till the end of the trading day*. There is no compulsion on placing stop loss price or target price
NRML orders are placed for the positions a trader wants to carry forward in Future& Options and take the benefit of leverage in case of delivery.
COVER ORDER (CO)
Cover Order is also intraday order, wherein a trader can set entry price along with stop loss price as per the trigger range mentioned while placing the order. It is a market order that is accompanied with a compulsory stop loss order in a specified range which is pre-defined by the system and cannot be cancelled.
When the main order executes, the stop loss price order will remain pending in the order book, the order will get squared off, if the stop loss price gets triggered or a traderchooses to exit the position once it reaches the target price.
BRACKET ORDER (BO)
Bracket Order is an automated order in which a trader places the entry price along with the stop loss and target price.Instead of placing three different orders (first for entering a fresh position, second for placing stop loss and third for placing target order), one single order can be placed with all the three prices simultaneously.
In Bracket Order, when the main order executes the stop loss and target order will remain pending in the order book. Once the target is hit, the stop loss order automatically gets cancelled and vice versa.
This enables the client to limit the losses and secure the profit in a single order. This automates the trading process and makes it easier for the client to trade freely.
How Bracket Order Works?
Suppose, a trader ABC wishes to buy Reliance @ Rs.1200 and wants to book profit @ Rs.1225 with stop loss of Rs.1190. Then the system will place three orders in one go:
- A buy limit order @Rs.1200 (main order)
- A take profit(sell) at ₹ 1225
- Stop Loss order at ₹ 1190
As soon as the main order is completed, the system will place the remaining two orders (SL and Target) automatically. Likewise, as one of the pending orders from SL and Target will be completed, other orders will be cancelled automatically.Note: All cover orders will be squared off at 3:15 pm (Cash/Futures) and 11:15 pm/11:30 pm (in commodities).
Note: The leverages are available as per the brokerage plan selected by the client. The carry forward position requires full margin as per exchange guidelines therefore no leverage is available in NRML
*End of trading day means 15 minutes before closing market hours.