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How does block funds facility work for Intraday?
Margin requirements are crucial when trading in the stock market as they determine how much capital a trader must maintain in their account to initiate or hold a position.
Margin can be categorized into two broad types:
A. Initial Margin
• The minimum amount required to enter a position.
• Required for Intraday, Margin Trading Funding (MTF) and Futures & Options (F&O).
• Computed as a percentage of the total trade value.
B. Maintenance Margin
• The minimum balance that must be maintained to keep a position open.
• If the account falls below this, a margin call may be issued.
Note: The leverage is provided as per the RMS policy.
Let’s understand how blocked funds facility works for Intraday and what you can expect –
Fresh FNO Position – BUY (Intraday)
Scrip Name : Nifty PE 06 March 2025
Quantity: 750
Price : 100
Total / Trade Value: Quantity x Price = 750 x 100 = 75,000
Margin or Leverage % : 50%
Margin Required : 75,000 x 50% = 37500
Hence, margin required = 75,000 x 50% = 37500
Scenario 1 : If position is squared off at a loss, say of Rs.5000, then:
Debits:
- Margin of Rs. 37,500 will be debited by approximately 4:00 pm
- Applicable brokerage + taxes will be debited by approximately 9:00 pm
Credits:
- Margin amount after adjusting loss will be credited back into your blocked funds i.e. 37,500 – 5000 = Rs.32,500 will be credited into your blocked funds by 5:30 pm
Scenario 2: If position is squared off at a profit, say of Rs.10,000, then:
Debits:
- Margin of Rs. 37,500 will be debited by approximately 4:00 pm
Credits:
- Entire Margin amount of Rs.37,500 will be credited back into your blocked funds by evening 5:30 pm - Profit of Rs.10,000 (after adjusting applicable brokerage + taxes) will be credited on T+1 day (T being trade date)
Fresh Position – BUY (Carry Forward)
Scrip Name: AUBANK 550PE MARCH
Quantity: 1,000
Price : 50
Total / Trade Value: Quantity x Price = 1,000 x 50 = 50,000
Margin or Leverage % : 50%
Margin Required: 50,000 x 50% = 25,000
Margin can be categorized into two broad types:
A. Initial Margin
• The minimum amount required to enter a position.
• Required for Intraday, Margin Trading Funding (MTF) and Futures & Options (F&O).
• Computed as a percentage of the total trade value.
B. Maintenance Margin
• The minimum balance that must be maintained to keep a position open.
• If the account falls below this, a margin call may be issued.
Note: The leverage is provided as per the RMS policy.
Let’s understand how blocked funds facility works for Intraday and what you can expect –
Fresh FNO Position – BUY (Intraday)
Scrip Name : Nifty PE 06 March 2025
Quantity: 750
Price : 100
Total / Trade Value: Quantity x Price = 750 x 100 = 75,000
Margin or Leverage % : 50%
Margin Required : 75,000 x 50% = 37500
Hence, margin required = 75,000 x 50% = 37500
Scenario 1 : If position is squared off at a loss, say of Rs.5000, then:
Debits:
- Margin of Rs. 37,500 will be debited by approximately 4:00 pm
- Applicable brokerage + taxes will be debited by approximately 9:00 pm
Credits:
- Margin amount after adjusting loss will be credited back into your blocked funds i.e. 37,500 – 5000 = Rs.32,500 will be credited into your blocked funds by 5:30 pm
Scenario 2: If position is squared off at a profit, say of Rs.10,000, then:
Debits:
- Margin of Rs. 37,500 will be debited by approximately 4:00 pm
Credits:
- Entire Margin amount of Rs.37,500 will be credited back into your blocked funds by evening 5:30 pm - Profit of Rs.10,000 (after adjusting applicable brokerage + taxes) will be credited on T+1 day (T being trade date)
Fresh Position – BUY (Carry Forward)
Scrip Name: AUBANK 550PE MARCH
Quantity: 1,000
Price : 50
Total / Trade Value: Quantity x Price = 1,000 x 50 = 50,000
Margin or Leverage % : 50%
Margin Required: 50,000 x 50% = 25,000
Last updated: 3 Months Ago
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