The margin required to convert intraday positions to delivery is calculated as follows:
- Delivery Margin Requirement: To hold the stock in your Demat account, you must have 100% of the required margin for delivery trades.
- Adjustment from Intraday Margin: Intraday trades require a lower margin due to higher leverage from brokers. To convert to delivery, you need to pay the remaining amount to meet the full margin requirement.
Formula: Margin Required = Delivery Margin - Intraday Margin Paid
Example: You buy 10 shares of XYZ at ₹50 per share in intraday with a 20% margin.
- Intraday margin paid = ₹100 (20% of ₹500).
- To convert to delivery, you need ₹500 in total.
- You must add ₹400 more to your account.