E Margin is a trading facility that lets you buy more shares by paying less money. HDFC Securities also provides this facility but are you confused about what is e margin in HDFC Securities?
Let’s dive in to grab a better understanding of the topic.
E Margin in HDFC Securities
E-margin is the facility where your stockbroker lends you additional money to trade more in the securities and stocks. This could be similar to the loan facility of any bank.
Now how this e-margin works in HDFC Securities?
- E Margin in HDFC Securities is only available in the Equity segment and not in F&O.
- HDFC Securities offers a 4 times Margin, which means you have to pay only one-fourth of the total investment.
- After the new amendment, you can hold the position till T+ 275 trading days before it is squared off.
- You can also convert your position to delivery.
For example, you have ₹2500 and want to invest in the share available at ₹100 each. Thus with the initial fund, you would be able to buy 25 shares.
Now if the share price increased by 10% i.e. 110, you can make the profit of ₹250. But here if you would have availed the margin in HDFC Securities, you can trade 4 times more and hence would be able to buy 100 shares.
Squaring off the position at ₹110 would have provided you the profit of ₹11000 which is 40% of the fund available to you.
Here you can avail the margin for T+275 days
On the 275th day, you can either square off or hold the position by paying the remaining money, failing which your position will be squared off by HDFC Securities.
We hope we gave you clarity around E Margin in HDFC Securities. Feel free to ask further stock-market related questions in the form below:
