What is MIS?

  • On May 16, 2017
  1. Full-form: Margin Intraday Square-off
  2. It is a hybrid product that can be used to trade in equity cash and Derivative /commodity/currency segment.
  3. The product is specifically designed for intraday traders who look to leverage their capital, get additional exposure and take advantage of small price movements.
  4. Equity Leverage: 2-8 times, Derivative, Commodity and currency leverage: 2.5 times (no leverage in options buying) on a basket of 250-300 scrips.
  5. The amount of leverage received depends upon various factors such as Volatility of the company, market Cap, Volume, etc.
  6. A trader can get extra exposure to magnify their investment capacity; thus, magnify returns. Eg. If you have Rs. 10,000 in your Tradedeal account and if you want to buy a scrip that gives 8X leverage, you can buy shares worth Rs. 80,000.
  7. Trader needs to square-off or close his position on the same day before 3:15 PM or it will get closed from the RMS end. In case, the trader wants to take a delivery or carry forward his position, he needs the full amount in his trading account; in the above example its Rs. 80,000. He needs to call us before 3:05 Pm and let us know his intention to convert the trade from MIS to intraday or do it manually using the software/application. There won’t be any charges for conversion of MIS into CNC. If the position is squared off from the RMS end, Call & trade charges of Rs. 18 will be applied.
  8. If the Mark-to-market value reaches 80%, the position will be closed from the RMS end.