Intraday Liquidation: Protecting Your Positions
Our system is designed to protect your capital by automatically liquidating intraday positions when your equity falls to 10% of the required intraday margin. This mechanism helps prevent further losses and ensures responsible trading.
Example
If you trade 1 lot of Gold MCX with an intraday margin requirement of ₹2500, liquidation will be triggered when your equity drops to ₹250.
Liquidation Process
Initial Margin: Client places trade, meeting required intraday margin.
Equity Drop: Equity decreases due to market movements, approaching threshold.
10% Threshold: Equity reaches 10% of the initial margin.
Automatic Liquidation: System closes position at market bid/ask prices to prevent further losses.
This automated process ensures quick responses to market changes, protecting your trading account from excessive downside exposure during active intraday sessions.
Carry Position Liquidation: Overnight Risk Management
For positions carried overnight, liquidation occurs when your client equity reaches 95% of the required carry margin. This higher threshold reflects the increased risk associated with holding positions outside of market hours, ensuring sufficient capital to cover potential overnight fluctuations.
Carry Liquidation Process
Assess Carry Margin: Determine the required margin to hold a position overnight.
Monitor Equity Level: Continuously track your account equity against the carry margin.
95% Threshold Trigger: Liquidation initiates if equity falls to 95% of required carry margin.
Position Closure: System closes the position at current market bid/ask prices to manage risk.
Example
If carrying 1 lot of Gold MCX requires ₹80,000, liquidation triggers at ₹76,000. This proactive measure minimizes your exposure to significant overnight losses.
Liquidation Sequence: Prioritizing Loss Reduction
When faced with a carry margin shortage, our system intelligently liquidates positions one by one, always prioritizing the position with the maximum loss. This strategy is designed to align with sound trading principles: cut losses and let profits run. The process continues until your account equity reaches the necessary carry margin level, ensuring overall portfolio health.
Liquidation Priority
Identify Max Loss: System identifies the open position with the largest current MTM loss.
Liquidate First: The position with the maximum loss is closed first.
Re-evaluate & Repeat: System reassesses margin and liquidates further positions if needed, until margin requirements are met.
Example
If you have a Gold MCX lot with a ₹1000 loss and a Nifty Options lot with a ₹200 profit, the Gold MCX position will be liquidated first to minimize your overall negative exposure due to margin shortage.
Understanding Trade Liquidation: Single vs. Multiple Lots
It's crucial to understand how our system handles liquidation based on the number of lots in your trades. This distinction ensures transparent and predictable management of your positions in case of margin shortages.
Single Trade, Multiple Lots
If you enter a single trade for, say, 2 lots, and a carry margin shortage occurs for just 1 of those lots, the entire trade of 2 lots will be liquidated. The system cannot partially close a single trade; it operates on a whole-trade basis.
Example
1 trade of 2 Gold MCX lots:
If margin short for 1 lot, both lots liquidated.
System cannot break a single trade.
Multiple Trades, Single Lots
Conversely, if you have two separate trades, each for 1 lot, and there's a carry margin shortage for just one of them, the system will only liquidate the specific 1-lot trade that is short on margin. This allows for more granular control over your open positions.
Example
2 separate trades, each 1 lot (e.g., Gold and Nifty):
If margin short for 1 Gold lot, only Gold lot liquidated.
Allows for targeted liquidation of individual trades.
This behavior ensures fairness and adherence to technical limitations of trade execution systems. Always consider your overall position structuring to manage liquidation risks effectively.
Trading Lock Rules: Entry and Exit Timings
To ensure fair and stable trading conditions, specific lock rules apply to placing stop-loss or target orders after an entry position. Understanding these rules is crucial to prevent unexpected order behavior and to manage your trades effectively.
MCX / NSE / International Scripts: 120 Seconds Lock
Cryptocurrency Scripts: 15 Min Lock
120 sec timer for all scripts
Adhering to these lock rules helps prevent market manipulation and ensures the integrity of trade execution on our platform. Plan your entry and exit strategies with these timings in mind.
Prohibited Trading Practices: Ensuring Fair Market Conduct
To maintain a transparent and equitable trading environment, BULL MARGIN strictly prohibits certain practices that are considered invalid or manipulative. Engaging in these activities can lead to the removal of trades and other disciplinary actions.
Price Manipulation & Illicit Strategies
- Scalping Trading / Chamka Trading / Line Trading / Price Manipulations Trades
- Deep in the money options selling on events at night to take advantage of synthetic futures
- Trades done during a technical glitch in the prices
- Trades done at price freeze / circuit filters
Misuse of Market Events & Information
- Crude Weekly Data time trades without ₹10000/- per lot margin
- Natural Gas Weekly Data time trades without ₹10000/- per lot margin
- BTST / STBT trades done just before market close to take advantage of international markets
- BTST / STBT trades done just before market close to take advantage of stock news/results
Account & Information Misrepresentation
- Buy in one ID and sell in another ID to take advantage of stock news/results
- Selling for taking benefit of dividend / Stock Split
- Multiple IDs of the same client without prior information
- Trades done using Fake screenshots or Double screenshots of same payments
These measures are in place to protect all participants and ensure the integrity of the trading platform. Adherence to these rules is mandatory for all clients.
Essential Trading Parameters and Support Guidelines
Familiarize yourself with our key operational parameters and support protocols to ensure a smooth and efficient trading experience. These guidelines cover everything from deposits to issue resolution, designed to provide clarity and quick assistance.
Deposits & Payins
- Deposits reflect in your account after bank confirmation (5-10 mins)
- Always get fresh payin details daily
- Auto payin gateway available 24/7 via mobile app
Order Execution
- Orders execute on BID and ASK prices only
- Last Traded Price (LTP) is generally not considered
- LTP is only considered for manual orders above Intraday High and below Intraday Low
Liquidation & SL Handling
- Positions, once liquidated, cannot be reopened
- Clients must make fresh deposits for new positions
- Stop-loss orders hit outside high/low will be removed
- If an ID is liquidated due to margin shortage outside high/low, the price will be modified to fit within the range
Support & Issues
- Our support team aims to resolve issues within 30 minutes
- All issues must be raised within 60 minutes of occurrence
- Issues should relate to existing system positions
- Management's decision is final during technical breakdowns
These parameters ensure transparency and efficient management of your trading activities. We are committed to providing comprehensive support for any concerns you may encounter.
Exchange Settings
Below are the detailed settings for each exchange we support. These parameters define the trading conditions including brokerage, margin requirements, and lot sizes.
NSE Index Settings
Brokerage
500 Per Crore
Max Lots
50
Order Lots
50
Holding Margin
50x
Intraday Margin
500x
NSE Index Options Settings
Option Buying
Allowed
Option Selling
Allowed
Option Buying Brok
5 Per Lot
Option Selling Brok
5 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
5x
Intraday Margin
10x
NSE Futures Settings
Brokerage
500 Per Crore
Max Lots
50
Order Lots
50
Holding Margin
50x
Intraday Margin
500x
NSE Futures Options Settings
Option Buying
Allowed
Option Selling
Allowed
Option Buying Brok
5 Per Lot
Option Selling Brok
5 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
5x
Intraday Margin
10x
NSE Equity Settings
Brokerage
500 Per Crore
Holding Margin
10x
Intraday Margin
10x
MCX Settings
Brokerage
500 Per Crore
Max Lots
50
Order Lots
10
Holding Margin
50x
Intraday Margin
500x
MCX Options Settings
Option Buying
Allowed
Option Selling
Allowed
Option Buying Brok
5 Per Lot
Option Selling Brok
5 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
50x
Intraday Margin
500x
BSE Index Settings
Brokerage
500 Per Crore
Max Lots
50
Order Lots
50
Holding Margin
50x
Intraday Margin
500x
BSE Index Options Settings
Option Buying
Allowed
Option Selling
Allowed
Option Buying Brok
5 Per Lot
Option Selling Brok
5 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
5x
Intraday Margin
10x
Crypto Settings
Brokerage
1000 Per Crore
Max Lots
100
Order Lots
100
Holding Margin
100x
Intraday Margin
100x
Forex Settings
Brokerage
25 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
3x
Intraday Margin
20x
Comex Settings
Brokerage
500 Per Crore
Max Lots
50
Order Lots
50
Holding Margin
50x
Intraday Margin
50x
Global Index Settings
Brokerage
10 Per Lot
Max Lots
50
Order Lots
50
Holding Margin
20x
Intraday Margin
100x