1 Getting Started 1.

1 Logon
To commence trading online, you first need to register with the Broker. This is done by filling in a registration request form and submitting it to the Broker either online or manually. Once the registration formalities have been completed, you will be sent a User ID and password that you can use to logon to the system.

1.2 Logoff
You may logoff by clicking the Logout option on the top right hand corner of the screen or you may simply close the browser. If the browser is left inactive for a certain amount of time, you will automatically be logged off.

1.3 Change Password

The first time you log on you will be asked to change your password. You can also change your password at any time by using the menu option.

How long is my password valid? The password validity is set by the Broker. The Home page contains information about your last logon and when your current password will expire. Are there any specifications for the password? Your password must be between 6 and 12 characters and must contain at least one alphabet, one number and one special character. Can I reuse the same password? You will not be able to reuse the same password immediately. What happens when my password expires? When the password expires the investor will be forced to change his/her password the next time they login to access the system.

1.4 Home page

The Home page is displayed as soon as you logon and can also be displayed by clicking on the Home option at the top right-hand corner.

1.5 Your Profile

Under this Home option you can view the personal and trading details that you have submitted to the Broker.

Can I change my profile? To change any information, a request will have to be sent to the Broker.

What is a product?

Each of the markets in which you can trade is considered a product. The products offered by goTX are BSE Equity, NSE Equity, NSE Derivatives.

1.6 Market Watch

Market Watch helps you understand what is happening in the market or industry. For example, you may like to track the price of the shares in a particular sector to get an overview of how the sector is performing or you may wish to watch the share prices of competitor companies to those you have invested in. A set of pre-defined watch lists are provided for your benefit, but you can also create your own.

What price is displayed after trading hours? After market hours or on exchange holidays the price information displayed will be the last trading day's price. What is a Quote? When you look up a stock / derivative quote for a given symbol / derivative you are looking at the most recent price list for the stock/contract. The price list for a stock implies the best five prices available for buying or selling of the stock. The total quantity available at each buy or sell price is also provided. How do I place an order from the Market Watch window? When you click on the symbol of a stock, a pop-up menu appears from which you can opt to place a buy order or a sell order. When you click on Buy or Sell, the appropriate Order Entry window is automatically populated with the symbol, lot size and best price of the opposite side of the selected stock. Example: The best sell price of ABB is Rs. 2,730.00. The best buy price of ABB is Rs. 2,713.00 When you select to place a buy order from the Market Watch screen, the price used is Rs. 2,730.00.

1.6.1 Watch Lists

Create up to 3 Watch Lists to monitor your potential investment opportunities at a glance.

How do I create a Watch List? You can create a custom Watch List by selecting the WatchLists option under the Trade menu. First create a name for the Watch List and then add stocks to the list. Both Equities and Derivatives from across exchanges can be added to a single list. What are the restrictions for a Watch List? A maximum of 50 stocks / derivative contracts can be added to each Watch List and a maximum of 3 Custom Watch Lists can be created. How do I add a scrip to the Watch List You can add the scrip window using search option given in the below window -

Then you have to select the required scrip and press Add to add the scrip. Go to Market menu and click on Market watch menu to view market watch

1.6.2 Price Alerts

Price alerts help you to keep track of your favorite stocks. Set alerts against price targets and we will notify you the moment they happen.

How do you set alerts? You can set up alerts for symbols based on their LastTradedPrice (LTP), BidPrice or Offer Price. Index Alerts are set based on the index value. The exchange at which the stock is to be monitored must be specified.

How are alerts notified? The alert button on the screen will indicate the notification of an alert by changing its display color. On clicking the button the alert message will be displayed.

2 Orders and Trading

2.1 Order Entry

The order entry interface has been designed to enhance the execution process by providing you with easy and efficient method to purchase / sell your stock. This interface is common for both the Equity and the Derivative market and is available along with the market information.

What is an Equity Order? When you place an order in the equity market you are willing to buy / sell a security under specified conditions. There are different types of orders each offering a different execution strategy. What are FUTSTK, FUTIDX, OPTSTK and OPTIDX? These are all types of derivative orders: FUTSTK Future Stock FUTIDX Future Index OPTSTK Option Stock OPTIDX Option Index When you place an order in the derivative market, you are placing an order in the Option or Future Contract. In the derivative market, the traded instrument is referred to as a contract. A contract such as options or futures contract is valued on the basis of its underlying instrument which is traded in the capital market. There are stock derivatives and index derivatives. In both cases the values of the underlying capital market influence the trading in the derivative market.

What is the difference between a Limit Order and a Market Order? A Limit Order enables you to buy or sell your stock at a specified price or better. When the trade goes through you get your specified purchase / sale price or a better price. A limit order sets the maximum or minimum price that you are willing to buy or sell. A market order enables you to buy or sell your stock immediately at the best available current price. A market order guarantees execution as long as there are other buyers/sellers available. A market order is sometimes referred to as an un-

restricted order. Be wary of using market orders on stocks with a low average daily volume: in such market conditions the purchase or sale price can be a lot higher / lower than the current market price (resulting in a large spread). In other words, you may end up paying a whole lot more than you originally anticipated! Some markets ensure that they protect your interest by keeping a fixed protection percentage to avoid huge spread variations.

What are Stop Loss Orders? Stop market / stop limit orders are orders to buy or sell a security when its price reaches a particular point, thus ensuring a particular entry price or limiting the investor's loss or locking in the investor's profits. As an investor you would place a stop order when you are going on a vacation or you are unable to constantly monitor the movement of your stock for a prolonged duration.

What is the difference between the Fill Types? GTD Good till Day. Select this Fill Type if you want your order to remain active in the market till it is executed or cancelled. GTS Good till Session. A good till session order is valid for the current trading session only. IOC - Immediate or Cancel. This is an order requiring that all or part of the order be executed immediately after it has been brought to the market. Any portions not executed immediately are automatically cancelled. This is used for large orders where filling quickly can be difficult or in cases where you want to grab as much as is available and the rest you would like to cancel.

If a GTD order is not executed or cancelled, how long is it active? A GTD order is valid until the end of the trading day. Once the trading closes for the day all open GTD orders expire. What is the difference between an Options Contract and a Future Contract?

In an options contract you have an option to buy or sell a stock at the defined strike price on or before the expiry date. An option contract has the symbol, expiry date, strike price, type of option. The buyer of an option contract has the rights to buy/sell the stock at the specified option strike price and the seller of the option has to meet the obligations. Options demand the buyer of an option to pay a price to hold the option. This price is known as the premium price. When you buy an option contract, you are agreeing to pay a premium equal to

the price * the order qty for the option. When you sell an option contract, you are agreeing to receive a premium equal to the price * the order qty for the option. In a future contract you are agreeing to buy/sell the stock at a set price at a future date which is the expiry date for the order. On the expiry date the buyer / seller will have to buy/sell the stock at the set price. The difference between the future contract price and the current price in the capital market is the profit/loss realized by the investor.

How do I know if the exchange has received my order? When the exchange receives and accepts your order, it sends you a confirmation. This is displayed at the bottom of the screen:

I find that not all options are available all the time. For example, when I select NSE, the Fill Type GTS does not appear. Why is this? The Order Entry interface is common for both NSE and BSE orders and thus caters to the restrictions and permissions of both regarding orders. The table below depicts the areas of difference.

How do I use the Price Protection percentage? When you specify a price protection percentage, this percentage is added to and subtracted from the LTP to create a price range within which the order should be traded. This restricts huge variations in prices and prevents your order from being traded at an undesirable price. Example: The LTP of AVENTIS is Rs. 1,879.00. Price protection % = 3 Upper end of the Price range = 1879 + (1879 * .03) Lower end of the Price range = 1879 - (1879 * .03) Therefore, Price range = Rs. 1822.63 to Rs. 1935.37 If the market price is greater than Rs. 1,822.63 or less than Rs. 1,935.37 then the order will not be traded. How do I know which segment to select? Segments indicate the type of trading that you would like to do. The segments available are Delivery, Intraday and Carry-forward.

When your intentions are to take delivery of the stock you buy or sell then you place the order in the delivery segment. This is permitted only for Equities. When you wish to only book profit and loss within a single day you adopt an Intraday trading strategy. This type of trading is permitted for Equities and Futures. Intraday trading is not permitted for Options. Carry-forward trading is used only in the derivative market and is similar to intraday trading except that your profit or loss may not be booked within a single day. This type of trading is permitted for both Futures and Options.

2.2 Order Book

An order book is useful in monitoring and tracking the list of orders placed by you. The order book tracks the status of your orders real-time throughout the lifecycle of the order. You can monitor the history of each order to know the changes that have happened on the order. By default the order book displays all the orders placed by you during the current trading day. Both Equity and Derivative orders have been separated for easy viewing. You can view a section of your orders, by specifying additional selection criteria. (For example, you can view all orders that are pending execution in a selected exchange). Your order book provides you a facility to modify or cancel a selected order.

What are the various states an order can be in? The various states of an order are explained below: Requested This is the state of an order that has just been placed and has been sent to the exchange for confirmation. The order remains in this state till a response is received from the exchange. Active When an order is accepted by the exchange, the status becomes Active. Rejected An order may be rejected by the goTX system or by the exchange. In both cases, the status changes to Rejected. To see why the order has been rejected, click on Rejected. Cancelled This status appears when you cancel an order. Partially Filled An order that has been only partially traded displays this status. Filled An order that has been fully traded displays this status. Stop Loss Accepted This status appears only for Stop Loss orders. This status indicates that the stop loss order has been accepted by the exchange. When the stop loss order is triggered, then the status changes to Active and the Order Type becomes Limit or Market accordingly.

2.3 Order History

This screen displays all the events that have occurred for the order, including the trade events. It is displayed by clicking on the goTX Order no. in the Order Book.

2.4 Trade book

An order is a request to buy / sell instruments, while a trade is a deal that has been confirmed by the exchange based on your order specifications. This book is ideal if you wish to know the trades that have happened on each order placed by you. In other words this book helps you to know the total quantity executed for each of your orders and the average price at which the order was executed.

2.5 Trades List

This is a list of all your trades. The Trade Book provides trades order-wise, whereas the Trade List displays each trade separately, including multiple fills that have happened on a single order. Example: You place a market buy order for 175 units of ACC. The order gets traded as follows: 110 @ 56.25 12 @ 57.00 53 @ 57.10 The Trade Book will display only one record while the Trades List will display three separate records.

3 Exercise and Assignment

3.1 Exercise Request
When can you exercise an Option? You can exercise American option anytime during the lifetime of the contract. You can exercise a European option only on the expiry date of the contract. When would you exercise an Option? You would exercise an option if the profit you make when you exercise is more than the profit you would get if you squared off the position. Your Position View displays your notional profit and loss, in both the markets (Spot and Derivative). This enables you to know the difference in the profits and you can take action appropriately. The spot market closing price is used for computing the exercise profits. What happens if you do not exercise your option on the last day of the contract? Exchange will automatically exercise your profitable positions and give you the profits at the end of the day. What do I enter in this screen? You enter the option contract you wish to exercise and the quantity you would exercise. The quantity depends on the total open buy option positions that you have open on the contract. You could do a partial exercise and leave the remaining to square off later.

3.2 Exercise Assignment

When can you get assigned? If you have sold an option contract, you could get assigned during anytime until the contract expires. American Options can be assigned anytime during the life of the contract, while European Options can get assigned only on the last day of the contract. Your position view displays your notional losses when you have a short position on the option contract. You could choose to square off your positions to minimize your losses, or you could run the risk of getting assigned. What is the Assignment? The assignment book displays the list of contracts where you have a short position on which you have received an assignment from the exchange.

4 Cash Statement
A trading cash account is a plain vanilla account where you deposit cash to purchase your stocks, derivatives, mutual funds etc. This is a regular account which each investor maintains with a broker to enable payment for purchases done. A cash statement shows you your balances in your cash account. It enables you to know your settlement credits and debits.

What is the difference between the Current Balance and the Free Cash Available? The current balance is not the same as free cash available. This balance reflects your cash account without accommodating for blocks on your cash account. When you make purchases or incur losses in your trading, the cash is not immediately debited from your cash account. This is because you are liable for the payment only on the settlement date which is 2 days after trading date for equities and 1 day after the trading date for derivatives.

4.1 Cash Withdrawal

Transfer of cash from your trading account to your bank account has been made simple and quick with an online facility to interact with your bank account. This helps you to increase your cash balances and enjoy uninterrupted trading facility. Cash that is received owing to settlement is currently held in the trading account. You are eligible to withdraw this money and transfer it to your bank account. You can only withdraw cash amount equal to the free cash available. The cash requested for withdrawal will be

blocked and reduced from your cash limits. The actual credit to your account will be processed at the end of the day/ the next working day.

4.2 Funds Transfer from Bank a/c to Trading a/c

KARVY has tied-up with ICICI Bank, AXIS Bank, HDFC Bank and IDBI Bank for Online Funds Transfer. Client can transfer the amount from his bank account to trading account, if he is having the online banking facility with the above mentioned banks. The amount will get instantly credited to his trading account without any manual intervention.

5 Margins and Trading Limits 5.1 Margin Statement

The margin statement reflects your purchasing power. It displays the margin sources and usage and the margin available for trading.

What is a receivable? A Receivable is the monetary obligation that is owed to you based on your unsettled transactions. Why am I provided limits against receivables? The transactions listed under receivables make you eligible to receive cash. However, the receivable is credited to your cash account only after settlement. So during the settlement period, the Broker makes the amount due to you available immediately and thus increases your purchasing power. How do I increase my purchasing power? 1. Transfer cash from your bank account to your trading cash account. 2. Sell some of your stock

3. Transfer stock that will contribute to the stock margins from your depository account to your collateral account. 4. Give a cheque or demand draft to the Broker. 5. Make an intraday profit by trading equities or derivatives. 6. Request the broker to grant you additional credit. What is a payable? Cash payable is the value of unsettled transactions or monetary obligations owed by you. Why are payables deducted from my limits? The transactions listed under payables result in your owing cash. Even though the payable will be debited from your cash account only after settlement, the amount is considered as a usage of margin and reduced from your total trading limit. How do I decrease my purchasing power?

1. 2. 3. 4.

Buy stocks. Withdraw cash from your cash account. Transfer stocks from your collateral account to your depository account. Make an intraday loss.

6 Receivables & Payables 6.1 Receivables

Receivables are shown according to the date on which they were traded.

6.2 Payables
Payables are cash obligations that are owed by you for all unsettled transactions. Receivables are shown according to the date on which they were traded.

7 Pay in Payout Statement

The Pay in and Payout statement prepares you to know your obligations for your trading deals which are under settlement. Your obligations for all unsettled trades are netted at the cash as well as stock level for each exchange. This information is very useful as it helps you to plan and meet your obligations in time for settlement. The Payin and Payout settlement that have happened for the latest closed settlement is also shown. The net obligation for the current trading day's activity will be shown at the end of the trading date.

8 Stocks
Your stocks are maintained in two types of accounts- Demat and Collateral. The Demat account is your depository account for which you have signed a 'Power of Attorney' agreement with your broker. The Collateral account is the account of your stocks that are maintained in the Brokers pool. In addition, the Broker permits you to sell stocks that you have bought but which are still under settlement. These include stocks bought on previous days and on the current day. These are termed Stock Receivables.

8.1 Stock Rules

The calculation of stock balances and their availability for sale in different exchanges is governed by the rules described below. 1. A stock cannot be netted across exchanges on the day it is traded. This means that if you buy a stock in NSE today, you can sell it only in NSE today, and not in BSE. 2. A stock can be netted across exchanges the day after it is traded. On the following day, the quantity traded is no longer bound to an exchange and can be traded across exchanges. For example, a stock that was bought in NSE yesterday can be sold in BSE today. 3. When a sale is made, the order in which stocks are allocated for the sale is: a. Stocks purchased today b. Collateral account c. Demat account d. Stock Receivables from previous days. This priority holds good each time there is a change. For example, assume you have 100 units of Stock A in your Collateral account. When you sell 10 units, this is held out of your Collateral account. However, when you buy 20 units of Stock A, the hold on your Collateral account is released, and the 10 units sold are held out of the quantity purchased today. 2. Stock is blocked only when a sell order is placed. 3. When a short sell order is placed, the short sell quantity will be accepted even if there are free stocks. When the short sell gets traded, it gets converted into a block if there is still free stock available.

8.2 Stock Statement

The Stock Statement reflects your stock holdings based on your trading activities. This helps you to get a consolidated view of the number of stocks you hold in your depositories as well as your stock positions which are under settlement. The stock rules make it necessary to segregate the quantity of a stock that can be traded only within an exchange from the quantity that can be traded across exchanges. The Stock Statement helps you to view these aspects of the stocks held by you.

The Stock Statement is divided into two sections: 1. Stock Balances this shows you how much you own of each stock, taking all depository accounts and balances into consideration. 2. Stock Available for Sale/Transfer this shows you how much of each stock is available for trading and how much you can transfer out of your accounts. This information is shown separately as the Demat or Collateral balance of a stock need not necessarily be the quantity that is available for trading. Similarly, the quantity available for trading is not necessarily the quantity that can be transferred out of a Demat or Collateral account.

Why are some figures displayed as negative? Negative figures indicate that stock has been sold. Why is my short sell not reflected in the section Stock Available for Sale /Transfer? This section shows only what is blocked against the Demat and Collateral accounts.

According to the formula given, the Free Stock figure for Collateral should be negative, but why is it displayed as zero? Free Stock for Collateral is displayed as zero on the screen if it is negative. It indicates that there is no free stock available in the Collateral account. However, if the number is negative, it is required for calculating the Free Stock for Demat.

8.3 Stock Margins

To increase your purchasing power, the Broker enhances your Trading Limits by adding a percentage of the value of your stocks in the Collateral account. The limits provided by the stocks are known as Stock Margins. Stock receivables from the previous trading days also contribute to the Stock Margins. The percentage assigned depends on the Stock Group of the stock, and a stock can contribute to margins only if it is in the Collateral account. The same stock in the Demat account will not be eligible for margins. At the beginning of each day, your stock margins are calculated by first assessing the value of each margin-eligible stock in your Collateral account and then applying the appropriate percentage. The resulting figures are summed and the total becomes a part of your Trading Limits.

8.4 Stock Transfer

You can transfer stocks from the Collateral account to the Demat account. This will decrease your stock margins as described in the previous section. You may want to transfer stocks from the Collateral account to the Demat account when a corporate action is expected on the stock. Corporate actions take into account your stock holdings in your Demat account. Stocks in your Demat and Collateral accounts are also available for withdrawal to an external DP account. In this case you will have to provide a DP account to which the stocks need to be transferred.

9 Risk Management 9.1 Trade Positions

Long Positions - When the buy trade quantity is more than the sell trade qty you are said to have a long position. Short Positions - When the sell trade quantity is more than the buy trade quantity then you are said to have a short position. Closed Positions - When the buy qty and sell qty are equal, then you have booked a profit / loss based on the buy value and sell value and the position is said to be closed since you have realized your profit/loss. Short positions profit when the market moves down on the stock while long positions profit when the market has an uptrend. Positions are maintained depending on the trading strategy that you adopt while placing the order: Delivery Positions - When your intentions are to take delivery of the stock you buy or sell then you place the order in the delivery segment. The trades under this segment are tracked separately. Investors normally have delivery positions if their intention is to make long term profits by holding on to the stock for a duration of time. You also trade in the delivery segment when you wish to benefit through company announcements on the stock. Intra-day Positions - When you wish to only book profit and loss within a single trade you adopt an intra-day trading strategy. In the intra-day segment your positions are valid only until the close of the current trading day. You are expected to close your positions by the end of the day, failing which your positions will be automatically closed by your broker. The intention is to book profit and loss based on intra-day price fluctuations in the market. You can create intra-day positions in the equity market and under derivatives in the futures market. Carry Forward Positions - In a derivative market you cannot close your positions by the end of the day. Since derivatives markets work on the basis of projected price as at a future date (expiry date), these positions have to be maintained for a longer duration. Carry forward positions are maintained for both options and future contracts and each position is valid until the expiry date listed in your contract.

9.2 Equity Margins

9.2.1 Delivery Margins
For trading in the delivery segment, margins are held only for buy orders and short sell orders as these are the orders that pose a risk to the Broker. When a sell order is placed, the order quantity is held from the stocks that you possess. Delivery Margins held for Buy orders Limit: Market: Stop Limit: Order quantity * Order price (Order quantity * LTP) + (Order quantity * LTP * Market orders markup %) Order quantity * Order price (Order quantity * LTP * Market orders markup %) The Market orders markup % is a parameter defined by the Broker. When the buy order is traded, the margin held is released and the trade value becomes a payable. If you do not have sufficient limits available, the buy order will be rejected. Margins held for Short Sell orders Limit: Market: Stop Limit: (Order quantity * Order price * Short Sell Margin %) (Order quantity * LTP * Market orders markup % * Short Sell Margin %) (Order quantity * Order price * Short Sell Margin %) Stop Market: (Order quantity * LTP) +

Stop Market: (Order quantity * LTP * Market orders markup % * Short Sell Margin %) Margins held for Short Sell trades Limit: Market: Stop Limit: (Trade quantity * Trade price) + (Trade quantity * Trade price * Short Sell Margin %) (Trade quantity * LTP) + (Trade quantity * LTP * Short Sell Margin %) (Trade quantity * Trade price) + (Trade quantity * Trade price * Short Sell Margin %) Stop Market: (Trade quantity * LTP) + (Trade quantity * LTP * Short Sell Margin %) Short Sell margins are held when the order is placed, but are not released until the short sell is cleared or settlement is through. Auction settlement is done for the short sells.

The margin is actually increased when an order is traded, to compensate the cash received from the sale. For example, assume Investor A has Rs.17,200 and places the following order: Short sell MTNL 34 @ 567.85. The short sell margin is 40%. Margin Held = 34 * 567.85 * 40/100 = 7,722.76 Margin available = 17,200 7,722.76 = 9,477.24 Assume the order gets traded 34 @ 568.10. Cash Receivables = 34 * 568.10 = 19,315.40 On a trade , along with the 40% margin the sale trade value is also held as margins. This implies the value held is 140%. This is because, if the sale proceeds were given as margin and 140% was not held, the investor would have the 60% of the sales proceeds as margins, in spite of short selling. Margin available = 17,200 - 7,722.76 + 19,315.40 = 28,792.64 So after the order is traded, the trade value is added to the margin held: Margin held = (34 * 568.10) + (34 * 568.10 * 40/100) = 27,041.56 Cash Receivables = 34 * 568.10 = 19,315.40 Margin available = 17,200 + 19,315.40 - 27,041.56 = 9,473.84

9.2.2 Equity Positions Delivery Positions

9.2.3 Equity Margin Detail Delivery Position Margin

This view is accessed via the Margin Statement.

9.2.4 Equity Margin Detail Short Sell Margin

This view is accessed via the Margin Statement.

9.2.5 Equity Intraday Margins

The margins held for intraday positions depend on two factors the intraday trading factor of the investor and the intraday trading factor of the stock. Both these factors are set as parameters in the system. Unlike trading in the delivery segment, all intraday orders and trades are considered when computing the intraday margin. First the marginable value is calculated and then the intraday trading factors of both the investor and the stock are applied to get the intraday margin. Intraday Margin = Marginable value * 100 / (Investor trading factor * Stock trading factor) Marginable value = Net Buy order value + Net Sell order value + Net Position value a. The Net Buy order value is arrived at after making adjustments for an open short position. If there is no open position or the open position is long, then the entire buy order value is taken. However, the buy order quantity can be adjusted against an open short position: Net Buy order value = (Buy order quantity Net Position quantity) * Average Buy order price So if the net quantity of a short position is greater than the buy order quantity, then the buy order value is not included in the marginable value.

b. The Net Sell order value is arrived at after making adjustments for an open long position. If there is no open position or the open position is short, then the entire sell order value is taken. However, the sell order quantity can be adjusted against an open long position: Net Sell order value = (Sell order quantity Net Position quantity) * Average Sell order price So if the net quantity of a long position is greater than the sell order quantity, then the buy order value is not included in the marginable value. c. The Net Position value is always part of the marginable value. Whether the position is long or short does not make a difference as the absolute value is considered. Net Position value = Buy trade value Sell trade value When the buy trade quantity and the sell trade quantity are equal then no margin is held because there is a complete squareoff and there is no open net position. The difference in trade values is booked as a profit or loss and does not contribute to the marginable value. d. The value of market orders is calculated using the LTP and the market orders markup percentage: Buy order value = Buy order quantity * LTP * Market orders markup % Sell order value = Sell order quantity * LTP * Market orders markup %

9.2.6 Equity Intraday Trading Factors

A combination of the investors trading factor and the stock trading factor is used to calculate the intraday margins as both influence the amount of margin that is to be held. For example, the margin to be held for a highly-traded stock is less than that of a stock that is traded infrequently. Similarly, the Broker will hold higher margins for an investor who does not trade much, and lower margins for one who trades frequently. The following examples show how these factors work together. Examples 1. Highly traded stock and highly active trader: a. Intraday Trading Factor of Stock A = 1 b. Intraday Trading Factor of Investor A = 8

c. Combination = 100/ (1 * 8) = 0.125 times the marginable value.

2. Highly traded stock and moderately active trader: a. Intraday Trading Factor of Stock A = 1 b. Intraday Trading Factor of Investor A = 5

c. Combination = 100/ (1 * 5) =0. 200 times the marginable value.

3. Highly traded stock and less active trader:

a. Intraday Trading Factor of Stock A = 1 b. Intraday Trading Factor of Investor A = 1

c. Combination = 100/ (1 * 1) = 1.00 times the marginable value.

4. Moderately traded stock and highly active trader: a. Intraday Trading Factor of Stock A = 75 b. Intraday Trading Factor of Investor A = 8

c. Combination = 100/ (75 * 8) = 0.167 times the marginable value.

5. Moderately traded stock and moderately active trader: a. Intraday Trading Factor of Stock A = 75 b. Intraday Trading Factor of Investor A = 5

c. Combination = 100/ (75 * 5) = 0.267 times the marginable value.

6. Less traded stock and less active trader: a. Intraday Trading Factor of Stock A = 50 b. Intraday Trading Factor of Investor A = 1 Combination = 100/ (50 * 1) = 2.00 times the marginable value. From the above examples we see that the less active the stock or the trader, the higher the margin held.

9.2.7 Equity Square Off

For an intraday position to be closed, it has to be squared off. This means making the sell trade quantity equal the buy trade quantity so that the profit or loss can be booked. All open intraday positions have to be squared off by the end of the day.

9.2.8 Equity Positions Intraday Margin

9.2.9 Equity Margin Detail - Intraday Margin View

9.3 Mark to Market

You can account for your position in two ways: accrual or mark-to-market. An accrual system accounts only for cash flows when they occur; hence it only shows a profit or loss when realized. The mark-to-market method values your book at periodic intervals using the current market price. Losses detected beyond permissible limits set by the broker are raised as alerts. The following components are marked to the market: 1. Stocks purchased at cost price - The stocks you purchase are considered as trading assets. 2. Stocks in the collateral account - These are the stocks in your pool account against which you have stock margins. 3. Open intraday positions - Your positions in the Equity and F&O markets. 4. Stocks for delivery at sale price - Stocks that you have short sold in the delivery segment.

9.3.1 Net Worth View

This statement co-ordinates your assets and liabilities so as to provide you an online analysis of your net worth. This statement enables you to adequately plan and track your trading activities as well as your fund movement. This statement also reflects your Mark to Market Profit or Loss. The value of your assets and liabilities at cost and at the current market price are displayed.

Other Features