Daily Margin Statement

Daily Margin Statement

Daily Margin Statement provides a detailed view of amounts deposited in the margin statement, it is made compulsory by the exchange regulations.

According to the exchange regulations, a daily margin statement is sent to every client on their registered email id. This statement generally informs a client of his or her margin status. The free margins available in their account to take newer positions without any charges or penalties. Also, there is a particular format used for the daily margin statement as told by SEBI

In case you deal with all the exchanges, you will have a mixed daily margin statement. A statement for a particular exchange will have all the traded segments in one place. This means that if you deal with NSE EQ (equity), NSE F&O (equity derivatives), NSE CDS (currency derivatives). Moreover, all these segments would be available in the daily margin statement.

The daily margin statement should be issued on the Trade day (T-Day). The margin statements are accessible to download from the Console login as soon as the trade process is done for the day. This is usually around 8.30 PM.

Daily Margin statement is compulsory and it tells the client how to use the available and leftover margin. It provides an outlook of the free margin which is available to take over newer positions without any penalty. Moreover, this margin statement is created in a format that is prescribed by the Securities and Exchange Board Of India. 

Also Read: Is Intraday Trading Safe?

How to Understand a Daily Margin Statement? 

The format of the daily margin statement is as follows:

  • Funds

The fund’s section includes the closing balance after reversing the debit and credit on the trading hour. In case you submit a cheque on the trading day, the transaction is shown in the margin statement. Brokers don’t combine the total amount of the cheque in this statement till the time it is passed by the bank authorities. 

  • FDR/Bank Guarantees

This scent includes all the information of the initial margin that is available after offering a fixed deposit. Also, in this daily margin statement, it is provided against currency segments Or equity derivatives. 

  • Approved form Of Margin

For trading in currency derivatives or equity derivatives, it is very essential to offer an initial margin level. 

  • MTM

Any kind of market loss is showcased in this particular section. 

  • Margin Status

This section contains the balance which is available for taking up fresh and new positions on the next trading day. 

  • Upfront Margin

It contains the total SPAN, optimum premium, and exposure margin that is taken over by the investors. 

The regular margin report is very crucial that offers a clear-cut idea about the daily and regular finances to the trader. Moreover, the report offered by the brokers has become a renowned tool these days for traders to look after the transactions. The essentialism of a daily margin statement has risen with the increased use of margin trading. 

Recommended:

15 Best Share Market Books

Difference Between Shares and Debentures

Indian Share Market Timings