What is Margin?

Margin is the minimum collateral, in the form of cash or approved securities, that you must have in your account to enter or hold certain types of trades. For example, if you're buying a stock for delivery that’s trading at ₹100, you’ll need the full ₹100 to place the order, with a leverage of 1X. However, if you’re trading the same stock intraday, the margin required might only be ₹20, since the position must be squared off by the session’s end. In this case, your leverage is 5X.

Not all trades require margin in the traditional sense:

• Equity Delivery (CNC): You pay the full value of the shares you buy. There is no leverage or margin facility, the amount you see is what you pay.

• Equity Intraday (MIS): You pay a reduced margin (calculated by the exchange based on VaR and ELM) because the position must be squared off on the same day.

• F&O — Futures (NRML): You pay SPAN + Exposure margin as defined by the exchange. You do not pay the full contract value.

• F&O — Options Buying (NRML): You pay the full premium upfront. No additional margin is required for long option positions.

• F&O — Options Selling (NRML): You pay SPAN + Exposure margin because as a seller, you carry unlimited risk potential.

Note: Margin requirements are set by the exchange (NSE/BSE/MCX) and are not Sahi-specific. Sahi follows exchange-mandated margins without modification. These requirements can change daily based on market conditions.