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How can I check my Margin Trading Facility positions

Everyone loves something extra without having to spend the same amount. Whether it is shopping or in the financial market, getting more at the same amount means an increased utilization capacity. The same is with margin trading. It is an effective way for investors to buy more securities without having to pay the whole amount. Once you sell and make profits, you return the borrowed amount to your stockbroker and keep the profits.

The idea is simple yet profitable. However, if you exercise margin trading, you would need to know the answer to the following question: How can I check my margin trading facility positions.

This blog details everything you need to know about managing your margin trading facility positions.

What is a Margin Trade Facility?

Margin trading is a type of investing style that involves buying expensive and over your current budget stocks. It is done by paying only a portion of the total price, and the stockbroker provides the rest. This margin amount is then paid with interest back to the broker. Until then, the broker holds the securities as collateral. If the profit you earn through the sale of the stocks is higher than the margin amount, you earn a profit. If not, you incur losses after settling the margin amount and squaring off the stock positions.

Almost all stockbrokers, along with IIFL, offer their customers the facility to trade on a margin. However, to utilize a margin trading facility, you would have to open a margin trading account.

How to open a Margin Trading Account with IIFL?

You can use your regular trading and linked Demat account to activate the margin trading facility. The activation is normally complete within 24-48 hours. Once that is done, the value of shares in the linked Demat account automatically becomes eligible as a margin based on the previous day’s closing value of the stocks. Any dividends received during this period will be credited to your linked bank account, and there is no separate request or formality required for the same.

To open a free Demat cum trading account, you can visit IIFL’s website or download the IIFL demat account app from the app store.

How can I check my Margin Trading Facility Positions?

You can follow the following steps to check your margin trading facility positions in your IIFL margin account:

  • If you have taken a margin trading position today, you can navigate to the ‘Positions’ section in your portfolio, and you will be able to see them there.
  • If you want to see the margin trading positions taken before today, you can navigate to the ‘Holdings’ section in your portfolio.
  • If you wish to see comprehensive Margin Trading Reports, you can visit the reports section in your portfolio.

Margin trading is a great way to increase profit potential by being able to buy more securities when you don’t have the budget at the moment. However, it is always wise to consult your stockbroker and understand your obligations and interest rate before starting a margin trading position.

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Frequently Asked Questions

You can hold it as long as you want, given you fulfil all the legal obligations and pay timely interest on the borrowed amount to your stockbroker.

No, you can not exercise a short-selling trade in Margin Trading Facility.

No, you are only allowed to trade in the cash segment. Hence derivatives trading is not allowed.

Yes, you can. It is called an intraday margin trading facility where you can sell the margin trading positions on the same day.

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ATTENTION INVESTORS

  • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020
  • Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
  • Check your Securities / MF / Bonds in the consolidated account statement issued by NSDL/CDSL every month.
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day.” – Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

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