Stock prices go up and down every day. Some people buy and sell shares on the same day to earn quick profit. This is called Intraday Trading.
When you don’t have enough money, but still want to buy more shares for intraday, brokers like Motilal Oswal give you a little help. This is called Intraday Margin. It means you get extra buying power for the day.
But remember, this help is only for that day. You must close your trade before the market closes.
What is Intraday Margin Trading?
Intraday Margin Trading means buying and selling shares on the same day using borrowed money from your broker. You only pay a small part of the full amount.
Motilal Oswal gives you this margin for trades that are squared off (closed) before 3:15 PM. This means you must sell the shares on the same day. You can't carry them to the next day.
It helps you take bigger trades, but you must be careful. If the trade goes wrong, losses can also be big.
How Does Intraday Margin Trading Work?
Let’s say you have ₹5,000 in your account. If your broker gives you 5x margin, you can trade up to ₹25,000 in stocks.
Motilal Oswal gives different margins for different stocks, based on risk and SEBI rules. The higher the risk, the lower the margin.
But if you don’t close your trade before the market ends, Motilal Oswal will square it off automatically. So, always keep an eye on the clock and price.
What Are Margin Calls?
A margin call is like a warning from your broker. It means your losses are going up, and you need to add more money to your account to keep your trade alive.
In intraday, since everything happens fast, margin calls can also come quickly. If you ignore them, your position may be closed automatically.
Motilal Oswal shows alerts and messages in your app. Always act fast when you get a margin call.
Intraday Margin: Advantages vs Disadvantages
SEBI’s Rules for Margin Trading
SEBI (Securities and Exchange Board of India) makes sure trading is safe and fair for everyone. So, it has made some important rules for intraday margin:
● Brokers must collect minimum margin from traders
● No extra leverage beyond SEBI's allowed limit
● Margin rules apply to both buying and selling
● Brokers must show margin used and margin available clearly
● Margin penalties apply if trader fails to maintain balance
● SEBI updates rules regularly for safety
Motilal Oswal follows all SEBI rules strictly. So, your trades are in safe hands.
Intraday Margin helps you do bigger trades with less money — but it also comes with risks. If you understand the market well and watch your trades carefully, you can benefit. But if you're new, start slow.
Motilal Oswal gives easy tools and clear alerts to help you trade better. Always remember: margin is power, but it needs responsibility.