True. I do understand stock futures are already leveraged by about 85-90 percent if one is to look up the span margin file. Was just curious to know if there could be further funding of an already leveraged product over and above the 50 percent of SPAN for intraday
Also, with 10 times margin funding for Equities, would my losses be only 10 percent of the total loss?
For example, lets say I buy 1000 stocks of XYZ at 100. Total would be 1 lakh. Assuming I have 10k in my account, and rest is funded by you. Now, say, the price falls by Rs.10 to 90 and my intraday position gets squared off.
Would my MTM loss be 10k or 1k ?
Thanks.
Also, with 10 times margin funding for Equities, would my losses be only 10 percent of the total loss?
For example, lets say I buy 1000 stocks of XYZ at 100. Total would be 1 lakh. Assuming I have 10k in my account, and rest is funded by you. Now, say, the price falls by Rs.10 to 90 and my intraday position gets squared off.
Would my MTM loss be 10k or 1k ?
Thanks.
This is a noob or should I say noobest question that you have asked till date.... ....
If you buy with 10k for Rs 1lk ... why should the broker take your losses??? .... The positions would be auto squared off once it breaches the 60% mark in your account.... So if you have bought for 1lk with 1000 shares at Rs 100 ... When stock falls to 94 it gets auto squared off and you take the entire loss of Rs 6000 not the broker.... ... . Cheers...