The margin requirement in Angel One depends on the type of trading you are doing. For equity delivery trades, you need to pay the full trade value upfront, which is 100% of the trade value. For intraday equity trades, the margin requirement is up to 20% of the trade value, allowing you to leverage your position. In the derivatives segment, such as Futures & Options (F&O), the margin requirement is based on the NRML margin, which includes Span, Exposure, and Delivery margins. It's important to note that margin requirements can vary based on the stock's volatility and market conditions.

How Are Margin Requirements Calculated?

Margin requirements are calculated based on the Value at Risk (VaR) and Extreme Loss Margin (ELM). VaR estimates the potential loss in value of a portfolio at a given confidence interval over a set period. ELM accounts for extreme market movements that could result in significant losses. The sum of VaR and ELM gives the total margin requirement. For instance, if the VaR + ELM is 17%, Angel One considers the margin requirement as 20%. This calculation ensures that there is sufficient margin to cover potential losses during market fluctuations.

What Is Mark-to-Market (MTM) Margin?

Mark-to-Market (MTM) margin is the daily adjustment made to your margin account based on the current market value of your positions. If the market value of your holdings decreases, you may need to deposit additional funds to meet the MTM margin requirement. For example, if you buy 100 shares at ₹100 each and the market price drops to ₹75, the MTM loss is ₹2,500, which needs to be paid the next day before market opening. It's crucial to monitor your MTM margin to avoid margin calls and potential liquidation of positions.

What Is the Margin Trading Facility (MTF)?

The Margin Trading Facility (MTF) allows you to buy stocks by paying only a portion of the total trade value, with the broker covering the remaining amount. This facility enables you to leverage your investments and take larger positions in the market. However, it's important to note that MTF comes with interest charges on the borrowed amount, which can range from 18% to 24% per annum. Additionally, if the value of your holdings declines, you may receive a margin call requiring you to deposit additional funds to maintain your positions.

How to Check Your Margin Balance?

You can check your margin balance by logging into your Angel One account and navigating to the 'Trading Balance' section. Here, you'll find details about your cash balance, margin available from pledged holdings, and the total margin available for trading. It's essential to regularly monitor your margin balance to ensure you have sufficient funds to meet margin requirements and avoid margin calls.