+ Expand AllMargin Trading Facility FAQs

  • 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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