What is the new margin rule for selling stocks

1. What is the new margin rule What is the new margin rule for stock stocks s? ? for selling selling What is a margin? What is a margin? Intraday trading, also known as margin trading, involves the use of margins. Investors can buy more shares than they can afford here by paying a percentage of the total share value, known as margin. Margin also serves as a form of security that you must maintain with your broker when trading stocks. As a trader, you must extend a certain percentage of the share value in cash. It is one of the many expenses that traders must bear. Learn more about other Stock Investing Fees. The margin requirements must be met by both sellers and buyers. This is due to the fact that for every price fluctuation, there may be a buyer unwilling to pay for the shares or a seller unwilling to deliver the shares. According to the old margin requirements, if you wanted to buy 100 shares with a 20% margin, you had to pay Rs. 20, with the broker putting in the rest. Brokers, on the other hand, provided substantial discounts on the basic margin requirements. They made you an offer in which you only had to pay 10% of the margin, or Rs. 2. You could effectively buy the shares with less money and get a higher level of leverage on them. For

2. the broker, they could pull in more investors by extending this offer, earning more brokerage as the volume of trade increased. What are the What are the new margin rules new margin rules? ? The new margin rules restrict the amount of leverage that the brokers can provide. Announcing the change in a circular regarding peak margin requirements, SEBI gave the new rules for the same. A notice with the FAQs to provide clarification on certain points was also released. For sellers For sellers After you sell your shares, then as per the new rules, you would be free to use only 80% of the sale proceeds on the same day, also known as ‘T day’. The remaining 20% will be frozen and will only be released on T+1 day, which is the next trading day. For buyers For buyers If you wish to buy a certain amount of shares, you must pay the complete margin on it. For instance, if you want to buy 10 shares of Rs. 100 each, and there is a 20% margin on these shares. What is the What is the impact of the ne impact of the new margin rule? w margin rule? Trading volume Trading volume Leverage Leverage Investor protection Investor protection Read more about Sebi Sebi’s ’s new margin rule new margin rule