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Question #112Financial Education
Financial Education
Question #112

What will be the impact on my limits if I convert a 5-Day Margin trade into delivery?

You can convert a 5-Day Margin trade into delivery only if you have adequate cash limits. Example: You buy 100 shares of ABC at the rate of Rs. 2,250 under the 5-Day Margin. Limit utilized is say Rs. 75,000 against the total order value of Rs. 2,25,000. If you decide to take the delivery of 100 shares, you will have to transfer additional funds of Rs. 1,50,000 (Rs.2,25,000 – Rs. 75,000) to your equity account.
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