Edelweiss Margin

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Margin

As indulged in Intraday Trading with Edelweiss, you must learn about the Edelweiss Margin. The concept of margin trading gives traders an opportunity to trade even with a limited fund.

This increases their chance to earn more profit.

But how much margin does Edelweiss provide?

Here in this article, we will provide you with the complete detail of the margin trading in Edelweiss but before that let’s grab a brief understanding of the broker.

Edelweiss is a SEBI–registered firm that is controlled and monitored by it. The firm is a full-service stockbroker and is also registered with different stock exchanges, including:

BSE
NSE

The firm provides the best trading platforms in India, and it provides its services in the following segments:

After getting enough information regarding the firm, now is the time to delve inside the sections to unfold the Edelweiss Margin.

Let’s start!

Edelweiss Margin Trading

As already known, margin trading gives the opportunity for investors to trade more in stocks that can offer a good return over time.

In this, the broker provides cash to traders who can then trade and buy more stocks to increase the profit margin on trade.

So, in simple terms, margin trading refers to the loan facility that is assisted at the agreed rate of interest for the short term.

Basically, margin trading is opted to make up for the shortfall that the investors face while trading in futures and options.

Like any other loan, it is also subject to the rate of interest, and the decided interest for a loan amount is 18% along with the GST.

Being a full-service stockbroker, Edelweiss provides trading platforms along with several margins to define the shares in which they want to trade.

Edelweiss margin funding helps you to trade in different segments and increases the overall intraday trading profit.

Below is the table that summarizes the Edelweiss margin funding in different segments of trade offered by the broker.


Edelweiss Margin Trading
Product	Margin
Equity Delivery Margin	Up to 4x (with margin funding)
Equity Intraday Margin	Leverage up to 10x on equity MIS orders
Future Margin	Up to 2x (index & stocks)
Option Margin	Option shorting- up to 2x Option buying- no leverage
Equity CO/BO Margin	CO order (selected equity scrips)- up to 80x
Future CO/BO Margin	CO order (future contracts)- up to 80x
Commodity Margin	For MCX and NCDEX- complete SPAN and exposure are required.

Edelweiss offers the margins on various segments, which are mentioned in the above table and described below to make the table understandable:

The firm offers a margin of up to 4 times on equity delivery.

On the equity intraday, the margin that is offered by Edelweiss is up to 10 times on the equity MIS orders. But with SEBI new margin rules it will reduce to 5x, thus reducing the chances of traders to earn profit.

Edelweiss offers a margin of up to 2 times on future trade, taking indexes and stocks into consideration.

In the option margin, there are two options, including:

Up to 2 times of margin is offered on the option shorting.

No leverage is offered on the option buying.

In the case of equity cover order and bracket order, up to 80 times of leverage is offered on the selected equity scrips in Cover Order.

Under future cover order/ bracket order, by considering the future contracts of cover order, the margin of up to 80 times is offered by Edelweiss.

In the commodity margin, for the MCX and NCDEX, the complete SPAN and exposure will be required.

Edelweiss Intraday Margin

To opt for Intraday Trading, a trader should know what it actually is? Basically, intraday trading or day trading refers to the trade performed within a day.

Here, the trader has a better chance to earn more profit but at the same time since day-trading involves quick analysis and decision making it involves a lot of risks.

But like any broker, you can reap the maximum leverage of trading using the Edelweiss intraday margin trading facility.

The broker offers a 10 times margin facility on the MIS products. While 80 times leverage in Cover order.

This means you can trade 10 times more than what you can do with the funds you have.

To understand the concept of Edelweiss margin trading let’s take an example.

Let’s suppose, you have ₹1000 and want to trade in the stock of ABC company currently available at ₹100 per share.

With ₹1000 you would be able to buy 10 shares, but with the Edelweiss margin you can leverage 10 times more thus can trade with ₹10,000 and can buy 1000 shares of ABC company.

Now let’s suppose the price of shares rises by ₹20, so without the margin facility, you would be able to earn the profit of ₹200 i.e. equals to 20% on the other hand, with ₹10,000 you would be able to earn ₹20000 and a profit of ₹10,000 i.e. 100% profit on your trade.

But if the stock price decreases by ₹20 then you will face a huge loss as well. Thus, it is essential to reap the margin facility only after doing the proper analysis of stocks.

Edelweiss Commodity Margin

Along with other segments, the broker also offers the benefit to trade in the commodity segment.

So, if you are into commodity trading with the broker, then trade more with the Edelweiss commodity margin facility.

If you are trading in the commodity future then the broker offers leverage of up to 6 times.

Edelweiss F&O Margin

Future and options are the contracts that derive the price from the asset (shares, commodities, ETFs).

If you want to earn maximum profit or return on investment, then the derivatives segment is the one you can go for.

The other Edelweiss F&O Margins are as follow:


Edelweiss F&O Margin	Edelweiss F&O Margin
Future Margin	Up to 2 times in indexes and stocks
Future CO/BO margin	Cover order(In future contracts)- up to 80 times
Options Margin	Up to 2 times (option shorting) No leverage (options buying)

Edelweiss Delivery Margin

Delivery trading is the one in which the stocks you have bought will remain in your Demat Account until and unless you wanted to release them.

To understand it better, the Edelweiss Margin on Delivery is elucidated below to make you clear about the same.

The Edelweiss Delivery Margin for equity is up to four times, along with the margin funding.

Conclusion

The Edelweiss Group has diversified investments and is a significant financial service firm in India. The corporation was founded under the name Edelweiss Capital Ltd. in 1995.

Edelweiss is regulated and monitored by SEBI. The company is a full-service stockbroker and is also listed on various stock exchanges, including BSE, NSE, and MSE.

Edelweiss is an NSDL member and a depository participant. With 475 offices and 12,00,000 plus active customers, the company is available at 200 locations.

You should take a look at the Edelweiss trading plans to compare the ranges for delivery, intraday, F&O, currency, and commodity.

The organization will leverage MIS orders up to 10 times. Margin Funding applies to the short-term lending facility that supports the negotiated interest rate.

Margin financing essentially is chosen to cover the deficit in futures and options faced by the investors.

Surprisingly, the exchange in goods applies to the purchase, selling, and trade of the goods where the commodity derivatives agreement (F&O) derives its asset values (commodity).

The entire Period and exposure for MCX and NCDEX will be expected within the product margin provided by Edelweiss.