Knowledge Base

Margin Trading

Margin Required = Trade Value × Margin%

Margin lets you trade with borrowed money — amplifies both profits AND losses.

SEBI requires 20% minimum margin for equity intraday trades.

F&O margins are set by exchange (SPAN + Exposure). Can be 10-50% of contract value.

Margin calls happen when losses exceed available margin — broker may square off positions.

Peak margin rules: SEBI now monitors margin at multiple snapshots during the day.

Pro Tip

Never use more than 50% of available margin. Keep buffer for adverse moves and margin calls.

Margin Trading - Complete Guide

Everything you need to know about Margin Trading and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Margin Required = Trade Value × Margin%

Key Concepts & Rules

Margin lets you trade with borrowed money — amplifies both profits AND losses.

SEBI requires 20% minimum margin for equity intraday trades.

F&O margins are set by exchange (SPAN + Exposure). Can be 10-50% of contract value.

Margin calls happen when losses exceed available margin — broker may square off positions.

Peak margin rules: SEBI now monitors margin at multiple snapshots during the day.

Expert Strategy

Never use more than 50% of available margin. Keep buffer for adverse moves and margin calls.

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