InvestorQ : How exactly should I place the intraday order on the trading screen?
Bhavik Nehru made post

How exactly should I place the intraday order on the trading screen?

Bhavik Nehru answered.
3 years ago

You trading screen has an in-built MIS option. The Margin Intraday Square-off (MIS) option is automatically classified as an intraday order and margined accordingly. Once you have selected the MIS option, your broker will be happy to extend the facility of waiver of collection of ELM and you are only required to pay the SPAN. There are 2 things to remember here. Firstly, select that you want to place an MIS order so that you are automatically eligible for higher leverage. Leverage can be 4 time for intraday but it can increase to 8 times if you are willing to put stop loss and profit booking order at the time of the order itself. Secondly, this is a trade-off between stock movement and SPAN margin. If you select a stock with more volatility, you stand a better chance of making trading profits but the SPAN margin will also be higher. For example, stocks like Reliance, Infosys etc will give you 10X leverage. One of the key merits of intraday trading is that it permits you to short sell the stock without delivery and cover it by evening by paying a small margin. In rolling settlements you cannot do that for more than a day. Remember, short selling is not permitted to be carried forward in rolling settlements since all positions not closed out the same day will result in compulsory delivery. The key therefore lies in making the best of your margins.

There is one important thing to remember about MIS orders for intraday trading. All MIS orders have to be necessarily closed intraday. Your broker runs a MIS check after 3.00 pm and any open intraday positions are automatically squared off. Don’t wait till then because the broker wants to protect the risk and so they will not bother about the price of execution. So, don’t just rely on the broker to take care of your positions because the onus of closure is on you and not on the broker.