SEBI fixed the leverage margin for all the stockbrokers in India in the circular on peak margin on July 20, 2020. This means any stockbroker cannot offer a higher margin than the defined cap to customers.
Earlier stockbrokers offer high margins of up to 40X to tempt new customers. Now all the brokers including Alice Blue offer a maximum of 5X margins on intraday.
Alice Blue Leverage Details
Alice Blue provides leverage up to 5 times of the funds in your trading account for Intraday trades.
For example, if you have Rs 20,000 in your trading account then you can purchase stock worth up to Rs 1,00,000. This implies for intraday trading.
|Segment||CNC/NRML||MIS Intraday||Cover Order||Bracket Order|
|Cash||1X||5X||Not applicable||Upto 5X|
|Options||1X||1X on buy|
1X on sell
|Upto 1X on but||Not applicable|
Alice blue provides a different margin for different stocks depending upon the stock category. You can calculate the margin available for a particular stock on Alice blue margin calculator.
General Instructions regarding peak margin
- You must clear MTM (market to market) loss in any kind of intraday product on a T+2 days basis. If failed to do so, you must be charged a short-margin penalty from the Exchange.
- All commodity scrips/contracts except option Commodities and agricultural Commodities are allowed for MIS.
- 75% of Holdings selling benefit (Subject to revision) allowed immediately on T day for further trade in any product in any segment.
- You can use the margin released due to Carry Forward options on the same day.
- Intraday MTM profits cannot be used on the same day.
- There will be no immediate margin release from BTST (buy today, sell tomorrow) holdings square off & requires a 30% upfront margin or VAR (value at risk) margin, whichever is higher.
- There will be Rs.4/- + GST on each Exchange side executed BO order.
Let’s understand Alice’s blue leverage for each segment
#1. CNC Orders
You get zero leverage or you can say 1X leverage for delivery trades which means if you have Rs 10, 000 in your trading account then you can buy stocks only worth Rs 10,000.
#2. For MIS Orders
MIS (Margin Intraday Square-off) is a type of leverage offered for intraday trading, where the positions are squared off before the market closes. It allows you to buy or sell stocks with a smaller margin amount.
Alice blue provides 5X leverage on equity Intraday, which means if you have Rs 50,000 in your trading account then you can buy stocks only worth Rs 2,50,000.
#3. Equity future & Options
Alice blue provides zero leverage or you can say 1X for equity futures & options trades which means you must have the required margins in your account to take a position in equity futures or options.
You can read our article on What are CE and PE in options trading to understand the call and put options in detail.
MCX (Multi Commodity Exchange) is a commodity exchange where you can trade various commodities such as gold, silver, and crude oil.
You get 1X leverage for the commodity segment trades, which means you must have the required margins in your account to execute commodity trades.
Alice blue has a separate back office portal called Alice Blue Bot, we have written a latest article to help you understand the how alice blue bot works.
CDS (Currency Derivatives Segment) is a segment of the stock market where currency derivatives futures and options are traded.
You get 1X leverage for the currency segment trades which means you must have the required margins in your account to execute currency trades.
Check out – Sharekhan Demat account charges
Alice Blue Brokerage
|Equity Delivery||Rs 0|
|Equity Intraday||₹15 per order or 0.05% whichever is lower|
|Equity Future||₹15 per order or 0.05% whichever is lower|
|Equity Options||Flat ₹15 per order|
|Commodity Futures||₹15 per order or 0.05% whichever is lower|
|Commodity Options||Flat ₹15 per order|
|Currency Futures||₹15 per order or 0.05% whichever is lower|
|Currency Options||Flat ₹15 per order|
You can read our research report on the top 20 stock brokers in India to check out other alternatives in the market.
Margin requirements vary for different trading segments and depend on factors such as market volatility and risk.
Leverage is calculated based on the margin requirements for each trading segment and the trading capital available in the trader’s account.
Alice Blue offers leverage up to 5 times the trading capital for intraday trading.
Leverage is the ability to trade with borrowed money, allowing traders to increase their exposure to the market with less capital.