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    Intraday Trading

    What is the Margin required to take a position in Intraday Product? What is Initial, Minimum Margin and Trigger price? What happens if the margin is less?

    Initial Margin is Margin amount required to take position in Intraday Product.

    Now let’s understand with an example: If you want to buy 1000 shares of ABC Limit which is trading at 100. The Initial Margin (IM) required is 20% and Minimum Margin (MM) is 15%.

    In the above example, you just require Rs. 20,000 (Initial Margin). Minimum Margin (Rs 15,000) is the margin amount that you have to maintain with I-Sec at all points of time for your open Margin position. Trigger price is the difference between IM and MM.

    What is Intraday Trading?

    In Intraday trading, you can take buy/sell positions in stock(s) with the intention of squaring off the position within the same settlement cycle. If during the course of the settlement cycle, the price moves in your favour (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss.

    • A trader buys a stock and sells it on the same day, or sells a stock and buys it back on the same day.
    • If position is not squared off during market hours, it will lead to automated square off by the system.

     

    ICICI Direct has two intraday products Intraday and Bracket.

    How does “Intraday (Margin)” work?

    In Intraday (Margin), trader only pays some portion of the total trade value upfront. The remaining portion is funded by the broker.

    Let’s take an example, say Mr. Q wishes to buy 2 shares of WIPRO however he does not wish to spend his entire available balance on these shares and thus opts for Intraday. If this was a delivery trade, he would have had to pay Rs. 782, however as seen below he only needs to pay Rs. 156 since the trade is being done in Margin segment.

    The amount which is blocked as margin is as mentioned below 20%. 

     

    Margin facility is available only for particular stocks. The whole list of eligible stocks along with the applicable rates can be viewed on the website.

    To view:

    • Click on Stocks > Services > Stock List.

    • Further, click on Select
    • Choose Margin/Flexi Cash from the drop-down list.
    • Click View.

    The list will now show those shares which can be bought using margin as well as the various margin requirements for these shares.

     

    [When logged in: Stocks > Services> Stock List]

    This list provides various all margin requirements for a particular stock under different products.

    How is Intraday trading different from trading in Cash Segment/ Delivery?

    Transactions in Cash Segment whether buy (or sell) are settled by “delivery” that is deducting the cash from the account and delivering the shares in the demat account whereas in Intraday trading, executed trades are squared off in the same settlement cycle (however there is an option to convert them into delivery in Intraday (Margin)).

    For example, when you place an order to buy 100 shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your demat account. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. However, if the price falls subsequently, there may be a loss.

    Normally to buy shares, you have to pay 100% of the share value, while to sell shares, you need to have shares in your demat account. But in Intraday, you pay only a part of the share value as margin.

     

     

    Delivery

    Intraday Margin

    BUY

    • If you place an order in delivery to buy 10 shares of ITC trading at Rs 450, you pay Rs 4500 (=450*10).
    •  If margin required is 20%, then, you only pay Rs900 (=Rs 4500*0.2)

    SELL

    • If you place an order to sell 10 shares of ITC, 10 qty of ITC shares will be sold from your account.
    •  Having ITC shares in your Demat account is not required. You can sell first and buyback later (within the same day)

     

    Can I convert intraday position to delivery? How?

    Holding to intraday (Margin) trades is possible using CTD (convert to delivery). If BUY trade has been executed in Intraday (Margin), then the trader has the option to buy the share (and convert to delivery) by paying the full amount,

    If SELL trade has been executed in Intraday (Margin), then the trader has the option to sell the share if trader holds that share in Demat account.

    You have the option to convert their margin position to Delivery either through the open positions page or the watchlist page.

    Via ICICI Direct App:

    To convert intraday position to delivery, you need to follow these steps:

    • Click on the portfolio tab
    • Select open position
    • Click on the stock you want to convert to delivery
    • Enter the quantity you want to convert then click submit

            

    Open Positions Page

    • go to the “Open Positions” page under “Stocks”

     

    • click on the “Intraday” option here, the You can view all their open positions.

    • under “Actions” click “The three dots” to convert the shares to delivery.

        

    Stocks > Open Positions > Intraday > CTD

     

    Watchlist Page

    • Go to “Stocks” page and click on “Watchlist”

      

    • Scroll down to see the following table, click on “Positions”

    • Click on the three dots under “Actions”> Click on “CTD”.

    Stocks > Watchlist > Scroll > Positions > 3 dots > CTD

    Show path and screenshot through watchlist

    • If you have taken Margin Sell position, you can convert it to delivery but only if you have same quantity of shares in your demat. Here shares from your demat will be sold and the position will be closed.
    What is short sell in Intraday, how does it work?

    Short selling involves borrowing shares of a stock and selling them with the expectation that the price will decline. The seller aims to buy back the shares at a lower price, return them to lender and pocket the difference as profit. This strategy profits from a decrease in the stock’s price.

    How can I “Square Off” a position?

    Via ICICI Direct App:

    • In order to square off your Intraday position you need follow these steps:
      Click on the portfolio tab
    • Select open position
    • You’ll see all the positions you have entered
    • Click on the stock whose position you want to square off
    • Click on the square off option > set the price and continue.

        

    “Square off” action initiates a trade to close the open position.

    For Buy position: square off action initiates a sell order to close the previous open position

    For Sell position: square off action initiates a buy order to close the previously held position.

    In Order to Square off:

    Open Positions Page

    • Go to the “Open Positions” page under “Stocks”

    • Click on the “Intraday” option here, then you can view all the open positions.
    • Under “Actions” click “Square Off” to square off your trade.

     

    Stocks > Open Positions > Margin > Square Off

    Watchlist Page

    • Go to “Stocks” page and click on “Watchlist”

     

    • Scroll down to see the following table, click on “Positions”

    • Click on the three dots under “Actions”
    • Click on “Square Off”.

    Stocks > Watchlist > Scroll > Positions > 3 dots > Square Off

    Can I modify intraday position? How?

    If the order is still unexecuted or pending, the trader can modify, cancel or reorder as seen below.

    Via ICICI Direct App:

    In Order to Modify:

    • Click on orders
    • Click on the stock whose order is pending
    • Option to modify will be available

        

    Via website                                                                      

    • “Modify” lets you to edit the order which has been placed earlier.
    • “Cancel” will cancel the order placed.
    • “Reorder” will place the same order again on the exchange.


    What are the options for “order validity”, “disclosed quantity”? Where can I see them?

    To view these additional options just click “charges & more” displayed towards the right of the “price” tab under place order.

          

     “IOC” orders

    • IOC refers to Immediate or Cancelled orders
    • It lets a trader to buy or sell shares as soon as the order is placed in the market, in the event the order is not accepted or failed, it will be removed from the system.
    • For example, Mr. S puts in an IOC order to buy 100 shares of ITC at Rs. 450 but 100 shares at Rs. 450 are currently not available in the market. In this case, this order will be immediately cancelled. There will be no open positions created in this case.

    Disclosed quantity

    You can choose to display the entire quantity or a part of it to the market while placing the order.  You can also decide the amount you want to disclose at once.

    • For example, an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displayed to the market at a time. After this is traded, another 200 is automatically released and so on till the full order is executed.
    • In NSE, the Disclosed Quantity (DQ) should not be less than 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.
    • In BSE, the Disclosed Quantity should not be less than either 10% of the Order Quantity or 1000 whichever is lower and at the same time should not be greater than or equal to the Order Quantity.
    What is “Limit order”? How to place a limit order?

    Limit orders are used to buy or sell a stock at a particular price. The order will only be executed at the limit price or better price (than limit price).

    • BUY limit order is the maximum price you are willing to pay to buy the share.

    E.g., a stock is trading at ₹100, placing a BUY Limit order at ₹90 would ensure that trade is executed at a price lesser than or equal to the limit price of ₹90.

    • SELL limit order is the minimum price that you are willing to sell their share for.

    E.g., a stock is trading at ₹100, placing a SELL Limit order at ₹110 would ensure that trade is executed at a price greater than or equal to the limit price of ₹110.

    Note: Limit order may not be executed if the market price doesn’t reach or cross the limit price.

    While trying to place a limit order, follow the same steps as placing a regular intraday order, and while entering the price click on “Limit” option as shown below.

    Set the price you wish to set as the limit price and click “Buy”.                             

    What is Initial and Minimum Margin? What happens if the margin is less?

    Initial Margin: The margin amount which is to be required to be maintained in the account to execute the transaction.

    Minimum Margin: The amount which needs to be maintained in order to hold the position.

    Now let’s understand with example:

     If Mr. B want to buy 1 share of RVNL which is trading at 391.70. The Available Margin required is 20% and Minimum Margin (Min. Margin) is 15%, these values can be found via the stocklist.

    The available margin will be (20% x 391.79 = 78.19) that is, margin percentage as pre-defined by ICICI Securities x Share Price X Quantity of shares. Similarly, Minimum Margin will be (15% x 391.70 = 58.5).

    In the above example, Mr. B requires Rs. 78.19 (Initial Margin) to make the purchase. Minimum Margin (Rs 58.5) is the margin amount that he will have to maintain with I-Sec at all points of time for his open Margin position.

     

    How will my intraday position be affected during circuits?

    Sell Position: If a stock price rises by 16% or  a percentage set by I-Sec in the event of any market volatility, all the Intraday sell positions will be automatically squared off. This applies for both F&O and Non-F&O stocks, based on the previous day’s closing price.

     

    Buy Position: If a security’s price falls by 16% or a percentage set by I-Sec in the event of any market volatility , all the Intraday buy positions will be automatically squared off. This applies for both F&O and Non-F&O stocks, based on the previous day’s closing price.

     

    Buy position will have no effect during an upper circuit & similarly sell position will have no effect during a lower circuit.

    How to place an Intraday order?

    Via ICICI Direct App

    • To place an order on intraday, follow these steps:
    • Go to stocks tab
    • Select the stock
    • Select Buy/Sell option
    • Click on the Intraday tab
    • Set the price and execute the trade

            

    Watchlist

    • To place an order through watchlist follow these steps:
    • Add a stock to your watchlist
    • Select the action (Buy/Sell)
    • Click on intraday tab >Set price and execute your order

     

    Via Website

    Go to “Stocks” tab and click on “Place Order”. Now, click on “Intraday (Margin)” tab as shown below. This will open the order screen for Intraday Margin, fill in the details and place order.

    Stocks > Place Order > Intraday (Margin) > Fill details > Confirm

    By when the profits from intraday will be added in current limits?

    As per the regulatory guidelines, effective from Friday 23rd Aug 2024, any profit earned from trades in Intraday, Bracket and Pay Later (MTF)) will be available for use in your current limits only after the closure of market hours. The said limits can be used for trading on the next trading day (T+1 day) or for placing overnight orders.

    For example, If you conducted trades on August 26th, 2024 where you bought stocks worth 50,000 in Intraday and sold them at 60,000. This means that you have generated a profit of ₹ 10,000 on the trades. Under the revised guidelines, ₹ 10,000 profit will be added in the limits in your trading account after-market hours on 26th August, 2024 and same can be used for trading only on August 27th , 2024 (T+1 day).

    Why are my profits from intraday are not available in current limits?

    As per the regulatory guidelines, effective from Friday 23rd Aug 2024, any profit earned from trades in Intraday, Bracket and Pay Later (MTF)) will be available for use in your current limits only after the closure of market hours. The said limits can be used for trading on the next trading day (T+1 day) or for placing overnight orders.

    For example, If you conducted trades on August 26th, 2024 where you bought stocks worth 50,000 in Intraday and sold them at 60,000. This means that you have generated a profit of ₹ 10,000 on the trades. Under the revised guidelines, ₹ 10,000 profit will be added in the limits in your trading account after-market hours on 26th August, 2024 and same can be used for trading only on August 27th , 2024 (T+1 day).

    What should be the Stop Loss Trigger Price in different situations?

    In a Fresh BUY order situation


    When placing a FRESH BUY order in Bracket first step is to set the limit price (price at which you want to buy) should be lesser than last traded price.

     While placing the stop loss trigger price (SLTP) make sure the SLTP is lesser than the limit price.

    As seen in the following example,

     Rs. 423 > Rs. 418.80

    {Limit price >SLTP}

    (SLTP<Limit Price/ market price for fresh order< LTP)

    In a Fresh SELL order situation

    When placing a FRESH SELL order in Bracket first step is to set the limit price (price at which you want to sell) should be more than last traded price.

    While placing the stop loss trigger price (SLTP) make sure the SLTP is higher than the limit price.

    As seen in the following example,

    Rs. 423.65 <Rs. 427.90

    {Limit price < SLTP}

    LTP < Limit Price < SLTP

    How do I place a Bracket order?
    Placing a bracket order consists of 2 steps: 

    1. Placing a mandatory Stoploss while placing the intraday order on "Bracket" tab 
       
    2. Adding an optional "Profit Order" from Open Positions tab.

     

    Via ICICI Direct app

    • Go to stocks
    • Select the stock you want to place bracket order
    • Select the action (Buy/Sell)
    • Click on stop loss tab
    • Enter price --> Enter SL Trigger price
    • Execute the order 

            

    Via website

    In order to place a Bracket order, follow these steps: -

    Go to stocks

    Go to place order

    Select Bracket

    1. Enter the details such as
      1. Exchange
      2. Action (Buy/Sell)
      3. Stock name
      4. Limit Price
      5. Stop loss trigger price

    Via Watchlist

    • Click on stocks go to watchlist
    • Add the stock to watchlist
    • Select the action (Buy/Sell)
    • Click on the Bracket tab
    • Set price and Stop loss trigger price
    • Execute the order

    What is a Cover SLTP order and how does it work?
    • Stop loss order helps trader to limit losses. Once the market price of the stock reaches the SLTP price, the limit price order gets triggered. When the stock price reaches this limit price, the trade is executed.
    • Stocks Tab> Place Order> Bracket
      This will open the order screen for Bracket, fill in the details and place order

    Cover Stop Loss Sell Order:
    Mr J buys ADIFAS at Rs.320.20 in expectation that the price will rise. However, in the event the market price falls, Mr J would like to limit his losses. Mr J may place a Cover Stop Loss Sell order specifying a Stop loss trigger price of Rs.317.30. Once the market price touches or crosses Rs 317.30, the order will be triggered and will get executed at a price equal to or better than the limit price.

    Cover Stop Loss Buy Order:
    Mr J short sells ITC shares at Rs.424.15 in expectation that the price will fall. However, in the event the market price rises, Mr J would like to limit his losses. Mr J may place a Cover Stop Loss Buy order specifying a Stop loss trigger price of Rs.428.30. Once the market price of ITC touches or crosses Rs.428.30, the order will be triggered and will get executed at a price equal to or better than the limit price.

    Stop Loss Trigger Price (SLTP) Order

    • In Stoploss (Bracket), it is mandatory to place stoploss trigger price at the time of creating the fresh position. It helps to limit losses.
    • SLTP (stoploss trigger price) order is the opposite order for your main order.
    • If the stock price reaches the SLTP, then the open position will be squared off at the price between (Cover) SLTP and limit price.

     

    Why am I getting the error “Bracket trading not supported for the stock”? How do I see the stock list for eligible stocks?

    Stoploss (Bracket) facility is not available on stocks. To check whether a stock is available on a particular stock, refer to the list of stocks eligible for such trades.

    In order to access the stock list, first go to “Stocks” tab and click on the dropdown list for Services, from here select “Stock List” option.

    This will present a list of all stocks and the facilities enabled for them. The list can be narrowed down by clicking on “Product” as shown below and selecting “Margin PLUS”. This will show a list of only those stocks which have the given facility enabled for them.

    Stock > Services > Stock List

    How is Bracket different from Intraday Margin?
    • While both are intraday products, with bracket you have the flexibility of placing profit order as well as mandatory stoploss order for their position.
    • However, in bracket position cannot be carry forward/ converted to delivery. It is mandatory to square off the position. If a trader has not squared off their position, then system will square it off any time after 03:15 PM.
    Where do I modify an SLTP order?

    You have the option to modify the orders before they are executed. Go to “Watchlist” Under “Stocks”

    Scroll till the following is visible, here click on “Orders”, this will show a list of all pending and executed orders.

    Here, click on the three dots next to the order you wish to Modify.

    Click on Modify.

     

    Via ICICI Direct App

    • Go to orders
    • Click on the stock
    • Modify option will be available 

    The Positions can be viewed in “Watchlist” as well. Click on the “Positions” tab as shown below.

    In order to modify or reorder, click on the three dots as shown below.

    Click on the action you wish to perform.

    • Place Profit Order allows you to avail the profit booking facility
    • Modify Bracket Order allows you to Modify details such as limit price or trigger price
    • Reorder allows you to place the same order again
    What is a Profit order and how does it work? How do I place it?

    Cover Profit Order in Bracket

    • A “cover profit order” is an added featured with Bracket order wherein after placing a bracket order you can add a “profit order”.
    • If the stock price reaches the target price (profit order), the open position will be squared off and profit will be booked.
    • In order to place a cover profit orderonce the fresh order is executed then a profit order can be placed. For this, Go to Bracket on open position page and click on place profit order.

    Example:

    Mr J BUYs ITC at ₹450. He wishes to SELL this at ₹465. He can place profit order with limit price of ₹465. If the market price reaches ₹465, the share would be sold.

    In case the limit price is not reached, the trade would not be executed.

    Via ICICI Direct App:

    To place profit order, follow these steps:

    • Click on portfolio tab
    • Go to open position
    • Select the stock you want to place profit order for
    • Set the price and execute the trade

     

        

    Via watchlist

    • Go to watchlist tab
    • Click on the position tab
    • Click on the three dots on the right of the stock for which you want to place profit order
    • Click on Place Profit order option > set the price and execute the trade