Based on the feedback received from clients and regulatory changes in the recent past we have modified the margins for Cover and Bracket orders in the Equity Cash / Derivatives and Commodity Derivative segments.
Normally CO and BO orders require lower margins as they have an in-built stop-loss order mechanism. In the case of BO, you are able to place even an extra target order with the same CO margins. More about CO/BO here.
The margins and leverage provided will be based on the stop loss you set while entering into a position. The closer the stop loss to initial order price, the lesser will be the margin required and leverage provided will be high. For example, if you place the stop loss at 1% away from your initial order price, the margin requirement will be lesser and the leverage provided will be more. If you set the stop loss at say 2% or 3% away from the initial order price, the margins applicable will be more and leverage provided will also decrease slightly accordingly. So, the margins and leverage depend upon the stop loss level you set for your trade.
Check the margin calculator to know the margins and leverage for Bracket Order and Cover Order
In the margin calculator, you can check the margins and leverage with varied stop-loss prices before entering a bracket order or cover order.
For current month NIFTY and Bank Nifty contracts you will need a minimum margin of just 2% and 2.5% to place an order. This translates to leverage of 50X on NIFTY and 40X on Bank Nifty on current month contracts.
For highly traded commodities like Crude Oil and Natural gas, you would need a minimum margin of just 1.5% and 1.4% to place an order. This translates to leverage of 66X on Crude Oil and 71X on Natural gas current month contracts
Explore CO/BO margins and leverages on other contracts here. Check here to know more on bracket order and cover order and to know how to place, modify and exit the order.