The term ‘Margin’ is often used in the stockbroking sector as it allows clients to trade more than their available balance in his/her trading account. IIFL Margin Trading allows customers to trade in an extra quantity of shares or scrips.
The margin trading plays a vital role in motivating a customer to trade and invest in the stocks they are fundamentally confident about without money constraint.
IIFL is one of the safest and a popular broking name in the market, clients can easily trust the stockbroker. It means as a client of IIFL, you can easily get the margin to increase the number of quantity.
IIFL Margin Review
As a participant of the stock market, you must have a clear idea of ‘Margin’. So, we are not going to discuss it in detail, just a short introduction of margin is explained above.
IIFL Margin is available across the trading segments like equity, commodity, etc, one just needs to check the scrip or stock and the percentage of margin before trading.
IIFL clients can calculate the margin available in the above segments. All segments have a different number of scrip listed for the margin facility.
The margin money or the percentage of margin differs from one segment to another and also from scrip to scrip. It depends on the associated risk in a segment or scrip. The higher the risk, the higher will be the percentage of the margin.
Some brokers demand initial margin money from the traders. It means a trader needs to deposit and keep an initial margin say Rs.15,000 in his/her trading account always.
Moving ahead, we will discuss the segments in which margin is offered by the broker and margin money or percentage.
Being a trader, you must remember the following points while asking your broker for the margin money:
IIFL offers margin to the traders across the segment. A trader must analyze the market situation before taking the benefit of margin.
Margin is not available for all scrip, so as a client, you must search the scrip first whether that is available for margin or not.
Margin helps the trader to earn more or minimize losses despite their financial constraint in their trading account.
The margin limit is available for each trading segment.
IIFL Margin Calculator
Before moving to get the facility of margin from the IIFL, you need to check whether the stock/scrip is available in the list of margin or not. It is so because no company offers margin in all scrips or stocks.
So, you should check the scrip before calculating the percentage or amount of margin offered.
What you need to do is go in the table given below and type the name of the scrip you want to trade, you will find that up to what extent margin is offered by the company (differs from scrip to scrip).
Suppose you want to trade in the commodity segment in Gold scrip. You will have to check whether the broker is offering a margin in this scrip or not. After that, you can check or calculate the margin amount.
IIFL Equity Margin
IIFL Margin for equity segment allows a customer to trade with the leverage. It includes intraday margin, equity delivery trading margin, equity future margin, and equity options margin.
Let’s start margin discussion of equity segment:
IIFL Equity Intraday Margin
Under this product type, the margin is offered to those who are day traders and have to square off their position before the market closing bell. IIFL equity MIS is an intraday product.
No charges are applicable on this product until your intraday trading position remains open at the end of the trading day. If the position is open, you will be required to pay call and trade charges.
IIFL MIS margin is offered based on stocks. It is offered up to 20X times.
Delivery trading is also known as CNC trade (Cash and Carry). When a trader doesn’t square off their open position at the end of the trading day, the position is to carry and forward it to the next trading day.
The full-service stockbroker offers a 3X times margin in case of equity delivery.
IIFL Equity Futures Margin
The client of IIFL equity future product can get leverage up to 3X times for intraday based on the stocks.
The clients of IIFL equity future products can get leverage up to 1X times with zero brokerage for CNC.
IIFL Equity Options Margin
No leverage is provided by the full-service stockbroker to IIFL equity options traders. However, the broker offers a shorting margin up to 2X times on the equity option.
IIFL Commodity Margin
If you are the one who wants to trade in the commodity segment with the Full-service stockbroker IIFL, you will be able to get leverage offered by the broker.
If you are an intraday commodity future trader, the broker will offer you 2X times leverage to trade.
Again, if you don’t close the position before the market closing bell, your position remains open and will be carried forward to the next trading day. In this case, 1X times span leverage will be given by the company.
For commodity options trading, no leverage is offered by the company.
IIFL Currency Margin
Currency traders of the stockbroker IIFL can also enjoy the margin facility to trade more quantity and earn a good profit.
In the currency futures segment, a client will get 2X times leverage for intraday trading. However, if the position is to carry forward to the next trading day, one can get 1X times leverage.
You will get no leverage or margin if you trade in the Currency option. However, 2X times shorting margin is offered by the broker to trade in currency option.
IIFL BO &CO Margin
It is very disappointing for the clients of Bracket order (BO) traders as the broker doesn’t offer any leverage to this segment traders.
CO (Cover Order) is like an intraday trading for almost all trading segments like equity, commodity, currency, F&O.
Here you can have a quick glance of the margin that you can avail from IIFL in different segments.
Up to 20X times
Up to 3X times
2X intraday margin
2X intraday leverage
Up to 3X limit
IIFL Margin Charges
IIFL offers the margin money to its customer that further helps them to do trade even with the little fund with them.
Availing the leverage of margin from the broker can maximize profit or minimize the loss in case the trade puts the stop-loss order.
The person has to deposit the margin amount at the time of opening the account. IIFL ask to deposit the minimum amount of ₹15,000.
Other than this, on taking the margin leverage from IIFL, it is good to check the interest charged on the margin. In general, the broker charged 18% + GST per year on the margin fund.
Thus, with IIFL Free Demat Account, reap the benefit to access in different platforms, call and trade facility, etc.
If you are a client of IIFL, you have an opportunity to get a margin facility in the segment you trade. The broker allows you to increase your trading numbers so that you can earn more profit by taking advantage of market movement.
You can choose IIFL as your broker if you want to get a margin facility across the trading segment.
IIFL Margin Frequently Asked Questions
1. IIFL offers margin in which segments?
IIFL offers margin in equity, commodity & currency segments.
2. How much is the maximum margin limit of IIFL?
IIFL gives up to 20X times the margin limit.
3. What is the margin limit for equity delivery traders?
Equity delivery based traders can get up to 3X times margin.