+ Expand AllMargin TradHow to Invest via Margin Tradinging Facility FAQs

  • QHow do I activate Margin Trading Facility?
    A

    Follow the below given steps to activate Margin Trading Facility from:

    i. Keat Pro X : Go to web links> Product Services > Margin Trading Disclaimer > Accept Disclaimer.
    ii. Website : Login to website > Go to New Products > Margin Trading > Accept Disclaimer.
    iii. Mobile App : Menu > Help > T&C Margin Trading > Accept Disclaimer.

    Please note that default selection is set as Automatic which you can change while accepting the disclaimer.

  • QWhat is the benefit of Margin Trading Facility?
    A
    You can carry cash delivery position by maintaining margin only. You can bring margin in the form of stocks and cash equivalent.
  • QWhat is the difference in automatic and manual Margin Trading Facility?
    A
    If you have selected manual Margin trading facility, you need to select order type every time while placing the order but once your account falls under debtors you need not to select margin trading facility while placing order and is called automatic Margin trading facility. All your orders will automatically be marked as margin trading order and Collateral movement will be taken care of.
  • QHow do I mark any stock as collateral?
    A
    You can mark any stock as collateral only if that stock is present in accepted list of stocks as stock collateral. To mark as collateral, select scrip then right click and select collateral option.
  • QHow to release from collateral?
    A
    Since it is required to maintain minimum margin to carry any margin trading position you need to check if you have sufficient margin under margin trading form of stock margin or cash equivalent.
    To release any stock from collateral first, you ensure sufficient margin under margin trading segment in terms of Stocks or Cash equivalent and then you should move stocks out of collateral just by right clicking on collateral stock.
  • QIs there any charges for moving stock in or out of collateral?
    A
    No there are no additional charges for moving stock as collateral.
  • QDo I need to open two DPs to avail Margin Trading Facility?
    A
    No.
  • QWhat if I am in normal debit?
    A
    If your account is under debit but you have stocks as margin, you can move stocks as collateral to Margin Trading Facility and can create new positions using margin trading.
  • QHow to change from manual to automatic Margin Trading Facility?
    A

    To change from manual to automatic follow below given steps.

    i. Keat Pro X : Go to web links> Product Services > Margin Trading Disclaimer > Select Automatic / Manual
    ii. Website : Login to website > Go to New Products > Margin Trading > Select Automatic / Manual
    iii. Mobile App : Menu > Help > T&C Margin Trading > Select Automatic / Manual

  • QHow long it will take to activate Margin Trading Facility after accepting margin trading disclaimer?
    A
    If you have accepted disclaimer before 3:30 PM (working day), your request will be processed EOD and you will be able to use Margin Trading Facility from next working day or it will take one more working day to activate the facility.
  • QWhat if stocks under collateral value appreciated due to market movement?
    A
    Your margin from collateral stock will get increased and you can use the same to create further positions under Margin Trading Facility.
  • QWhat if I receive dividend on collateral stocks?
    A
    Dividend will be credited to your linked bank account.
  • QIs it possible to replace one collateral stock from another?
    A
    Yes, you can replace one collateral stock from another.
  • QWhat if my account is in credit? Will I be able to release all stocks from collateral to normal?
    A
    Yes, if your account is in credit to carry all margin trading position you should move all collateral stock to normal.
  • QWhat if I sold stock without marking?
    A
    If you sell any stock, first it will go from your intraday position then from BNST and after to Delivery and last from your collateral.
  • QWhat if my stocks bought under Margin Trading Facility get appreciated? Will I get additional margin on it?
    A
    No! you will not get benefit of any MTM gain on your margin trading position.
  • QWhat will be the interest calculation?
    A
    Interest will be charged on total debit position including Debit under normal Plus debit under Margin trading Position.

    In case you have sufficient credit under normal segment to cover margin trading debit, no interest will be charged to you.

  • QFor whom is Margin Trading Facility available?
    A
    This facility is available for online as well as for offline trading customers.
  • QWhat are the benefits of using Margin Trading Facility (MTF) facility?
    A
    As Kotak Securities provides funding for the shares bought by you, you need to pay only part of total value of shares bought. E.g. If you buys Infosys worth Rs.1,00,000/-, you are supposed to pay 25%* i.e.Rs.25000/- and balance Rs.75000/- will be paid by Kotak Securities on behalf of you at the time of pay-in.
    * % of the Margin may vary from time to time.
  • QWhat is the rate of interest being charged for using Margin Trading Facility through Kotak Securities Ltd.?
    A
    For details please call our customer care team.
  • QWhat are the margin requirements, while trading under Margin Trading Facility?
    A
    It varies for scrips.
  • QCan we transfer stocks to fulfill the margin requirements?
    A
    Yes!
  • QWhat will happen if I do not maintain sufficient margin?
    A
    You will not be allowed to buy any securities under Margin Trading Facility.
  • QWhat will happen if a client does not maintain minimum required margin for Margin Trading Facility?
    A
    In case margin falls below the minimum required margin, Kotak Securities Ltd. will make a Margin Call and the position can be liquidated.
  • QWhat if I am not able to meet the Margin Call?
    A

    Kotak Securities Ltd can liquidate the securities if the client fails to meet the Margin Call made or fails to transfer funds. Margin call/ liquidation can be made at any point of time when margins are not in place.

  • QHow can I check my Margin Trading Facility positions?
    A
    A detailed report giving the Margin Trading Facility positions and the related Margins is available under Margin Report in Equity of the trading section - Margin Report.
  • QHow can I take Margin Trading Facility positions?
    A
    While placing the order, select 'Margin Trading' as the 'Order Type'.
  • QIs Short-Selling allowed in Margin Trading Facility?
    A
    No, Short – Selling is not allowed in Margin Trading Facility.
  • QHow long can I carry forward the debit/ outstanding amount in my account?
    A

    Debits can be carried forwarded, till the time customer is able to maintain the minimum required margin for the margin funding position. In case if the value starts depreciating, you will have to transfer the funds to remain above minimum maintenance margin, else, Kotak Securities Ltd. can liquidate the position, held by you (to cover the required shortfall %).

  • QCan I sell 100% shares on the next day, bought on previous day under Margin Trading Facility?
    A
    Yes. You can sell 100% shares the next day, of the stock bought on the previous day by selecting "Margin Trading" as 'Order Type'.
  • QWhat are the brokerage charges for buying/ selling using Margin Trading Facility?
    A
    For details, Please get in touch with our customer care.
  • QHow can I avail Margin Trading Facility & what are the documentation formalities?
    A
    For details, Please get in touch with our customer care.
  • QCan I trade in Derivatives, even if I am registered for Margin Trading Facility?
    A
    Yes. If you have access to Derivative segment, You can trade in derivatives segment.
  • QCan I use Margin Trading Facility for Derivatives trading?
    A
    No. Margin Trading facility is available only for Cash segment.
  • QCan I provide stocks as security for availing limits in Available Cash Balance for trading under Margin Trading Facility?
    A

    Yes.

  • QWill my limits be released after the square off transaction, and can I use it further to take fresh position?
    A
    As soon as you square off the position, your limits would be released and further fresh positions can be created.
  • QIn all, how will my margins be calculated for all segments for trading provided by Kotak Securities?
    A

    a) For Normal Trades (Non Margin Trading), margin required would be 14.29%* (for 7 multiple scrips) or 100%* (for 1 multiple scrips)

    b) For derivatives trading, margin required for Nifty would be 10 %*, and for Stocks 16.67%*.

    c) For Margin Trading Facility, margin required would be 25%*.

    *Note: - Trading Multiple may be changed time to time, and is on sole discretion of Kotak Securities Ltd

  • QAre DP charges applicable, while using Margin Trading Facility?
    A
    Yes, DP charges will be applicable as per the normal schedule.
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  • Mandatory by SEBI
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  • Security of Equity Investments.
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