What is the intraday margin available for equity shares?
As per SEBI regulations on peak margins, starting September 1, 2021, intraday leverages have been reduced to ensure 100% of the margin required is collected for all Equity and derivative positions.
The minimum margin for equity intraday trades will be 20% of the trade value based on the volatility of the stock (VaR+ELM+Adhoc margins of the exchange). So, you will get up to 5 times intraday leverage in the equity cash segment.
For example, you have 1 lakh rupees in your account and want to buy ITC shares (Intraday).
Leverage in ITC: 5X
You can buy up to 100000*5 = 500000 Rs of shares.
So, for buying shares of 5 lakhs, you should have only a 20% (approx.) margin that is 1 lakh rupees.
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