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Akriti Tomar

• Removal of Calendar Spread Margin Benefit on Expiry Day

  By : Akriti Tomar | May 15, 2025

  Effective Date: February 10, 2025 The Securities and Exchange Board of India (SEBI) has introduced a crucial regulatory change impacting traders who use calendar spread strategies in index derivatives. From February 10, 2025, the calendar spread margin benefit will no longer be available on the expiry day. This change applies only to index derivatives and does not affect stock derivatives. The margin benefit will continue to apply on non-expiry days as usual.   What is a Calendar Spread Strategy? A

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• What is a Trading API and How Can It Elevate Your Trading Experience?

  By : Akriti Tomar | May 15, 2025

  In today’s fast-paced financial markets, traders are increasingly turning to automation and data-driven trading strategies to gain a competitive edge. One essential tool enabling this transformation is the Trading API. What is a Trading API? A Trading API (Application Programming Interface) enables traders and developers to connect custom-built platforms, bots, or third-party applications directly to a broker’s trading system. This seamless connectivity allows users to place orders, access real-time market data, track positions, automate strategies, and more — all without

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• Why Are Intraday (MIS/CO) Orders Not Allowed for Some Stocks?

  By : Akriti Tomar | May 15, 2025

  Intraday trading is a popular strategy where traders buy and sell stocks within the same trading session to capitalize on short-term price movements. RMoney offers product types like MIS (Margin Intraday Square-off) and CO (Cover Order) for such trades, which provide leverage—allowing traders to trade with more capital than they hold in their account. However, not all stocks are available for intraday trading, and there are regulatory or risk-based reasons for these restrictions. Why Are Intraday Orders Blocked for Some

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• What is the close-out procedure during an auction?

  By : Akriti Tomar | May 15, 2025

  If there are no sellers in the auction market and the shares could not be bought, the exchange conducts a Close-out Settlement based on the trading category of the concerned share, and the trade is cash-settled on T+2. The buyer in the transaction gets a full refund, which will be borne by the seller. The close-out price at which the trade will be settled is the higher of: The highest price recorded in that scrip on the exchange from the

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• What is Short Delivery and What Are Its Consequences?

  By : Akriti Tomar | May 15, 2025

  In the stock market, short delivery refers to a situation where the seller fails to deliver the shares to the exchange by the settlement date. This typically occurs due to issues like illiquidity, stocks hitting the upper circuit, or failure to square off intraday short positions. Let’s understand how short delivery impacts both the buyer and the seller, along with its process and penalties. What Causes Short Delivery? Short delivery usually happens when: A trader sells shares without holding them

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• What is the trigger price in a stop loss order?

  By : Akriti Tomar | May 15, 2025

  The trigger price is the point at which a buy or sell order becomes active for execution on the exchange servers. When the stock’s price reaches the trigger price set, the order is sent to the exchange servers. Once the stop-loss order is triggered, the limit price becomes the price at which shares will be sold or bought. To learn more about limit orders, see What are limit and market orders? The stop-loss (SL) order consists of two price components: The

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• Why is My Demat Account Frozen?

  By : Akriti Tomar | May 12, 2025

  A Demat account can be frozen due to various regulatory, compliance, or legal reasons. When frozen, it restricts the account holder from executing transactions such as buying, selling, or transferring securities. Here’s a comprehensive list of reasons why a Demat Account may be frozen: Account Holder’s Request Freeze requested by the account holder to prevent unauthorized access or for other personal reasons. Learn how to Freeze your Account click here KYC/PAN-Related Issues Invalid or non-compliant KYC and PAN details, such

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• Why Exiting a Hedged Position Partially Can Result in Margin Penalties

  By : Akriti Tomar | April 29, 2025

  Yes, exiting one leg of a hedged trade can lead to a peak margin shortfall — even if both legs are eventually closed and the margin requirements are met at the end of the trading day. Peak margin shortfalls occur due to the way clearing corporations (CC) monitor intraday margin sufficiency. The CC takes multiple random intraday snapshots to evaluate whether the required margin is maintained: Commodity segment: 8 random snapshots All other segments (Equity, F&O, Currency): 4 random snapshots

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• Can pledged shares be lent under SLB?

  By : Akriti Tomar | April 29, 2025

  No, pledged shares cannot be lent under the Stock Lending and Borrowing (SLB) mechanism. You can only place SLB orders for shares that are available in your unpledged holdings. When an SLB order is successfully executed, the shares are debited from the lender’s Demat Account and credited to the borrower’s account. Therefore, to participate as a lender in SLB, ensure the shares are free from any pledge or lien at the time of order placement. Need Help? Feel free to

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• Why is the NAV for Direct Mutual Funds Higher than Regular Mutual Funds?

  By : Akriti Tomar | April 29, 2025

  Disclaimer: Investments in the securities market are subject to market risks. This content is for educational purposes only and does not constitute any financial advice. When exploring mutual fund investments, one of the common questions investors ask is: “Why is the Net Asset Value (NAV) of direct mutual funds higher than that of regular mutual funds?” To understand this, it’s essential to delve into the concept of expense ratios and how they impact mutual fund returns. Understanding NAV and Expense

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