General

What are Initial and Minimum Margins? What happens if the margin falls below the required level?

Initial Margin: The margin amount which is to be required to be maintained in the account to execute the transaction.

Minimum Margin: The amount which needs to be maintained in order to hold the position.

Now let’s understand with example:

If Mr. B want to buy 1 share of RVNL which is trading at 391.70. The Initial Margin required is 20% and Minimum Margin (Min. Margin) is 15%, these values can be found via the stocklist.

The initial margin will be (20% x 391.79 = 78.19) that is, margin percentage as pre-defined by ICICI Securities x Share Price X Quantity of shares. Similarly, Minimum Margin will be (15% x 391.70 = 58.5).