Circuit Breakers

Circuit breakers on the stock market work in a similar way to how an electrical fuse halts the working of the devices once there is too much load. It helps in stopping the system for a small period of time rather than breaking the system.

Technorati Tags: Indian Stock Markets,BSE NSE Circuits

Index Circuits

In case the index(BSE or NSE) rises or falls by more than ten percent, the circuit breaker kicks in and halts trading. Depending on the change in indexes, different period of break times are put in. Complete information related to the how much time the trading is halted can be found here. In case of a 10% movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1:00 p.m. In case the movement takes place at or after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case movement takes place at or after 2:30 p.m. there will be no trading halt at the 10% level and market shall continue trading. In case if the market hits 10% before 1 p.m. then as explained there would be a one hour halt in trading and after resumption of trade in case if the market hits 15% in either index, then there shall be a two-hour halt. If the 15% trigger is reached on or after 1:00p.m. but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the trading shall halt for the remaining part of the day. If the market fails to resume at 10% then the next limit is placed at 15% and finally at 20%. In case if market fails to resume from 15% and if it hits 20% irrespective of the time, the trading shall be halt for remaining part of the day.

Circuits on Individual stocks

Circuits are also present on individual stocks. The stocks present in the BSE 30 and the Nifty 50 do not have any circuits built on them. These are known as the Non Index scripts. Incase there is huge percentage swings in these stocks, the whole market circuits can be triggered. For the other stocks on the nifty, circuits are built at 2,5 or 10 percent. This limit is determined by the impact cost and other things related to the script. These values are calculated monthly and for  a new stock ,it is placed in a group which has most companies in the same market cap.

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Margin and Margin Plus trading in ICICI Direct

ICICI Directmargin trading you can square off the position between 9.55 am to 2.45pm,after 2.45pm system can any time square it off.
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1.a. Click on Toolsb. Go to Internet Optionsc. Click Temporary Internet Filesd. Click Delete Filese. Click ok
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In CASH delivery based trading, the shares would be credited to your demat account on Trading+2 working day. Suppose if you had purchased shares on Monday (trading T-day), Tuesday will be the T+1 working day and Wednesday will be the T+2 working day. On T+2 working end of the day the shares would be credited. Once the shares are credited to your demat account, you can sell the shares.
If you want to sell the shares which are purchased on same day (i.e., trading day in "Cash"), you can go for sell link and you can place the sell order. If the stock is under rolling segment, you can buy and sell on same day under cash segment.
In cash you would be unable to short sell the shares. You need to have the shares in your demat account before selling.
The Margin and Margin Plus trading can be done only in market hours. The margin option is enabled only in the market hours in buy or sell link.
In Margin and Margin Plus trading you can short sell the shares.
Margin trading is known as an intra day trading wherein if you place a buy order, you will have to place a sell order by the end of the day (i.e., 2:40) or vice versa. The transaction placed by you in margin either needs to be squared off or needs to be converted to delivery before the end of settlement.
In case you fail to convert or square off your positions the system would automatically place a square off order by the end of the settlement. Also margin trading is funded by certain percentage of cash trading i.e., you need not require to pay 100% of the transaction amount while placing the order. The margin segment also enables you to short sell shares i.e., sell shares though they are not available in your demat balances.
However, in cash trading if you do not square off you would receive the shares in your demat account directly. In cash segment you need to have 100% of cash while placing a buy order and you need to have shares in your account while placing a sell order.
To trade in margin all you will have to do is just select the margin option from the product down on the buy or sell page. All the other factors while placing the order would remain the same.
Only the initial margin would be blocked at the time of placing the order. For example:
You want to place a buy order for 100 shares @ Rs.4,000 of INFTEC and the margin percentage for the same is 10% then the margin amount blocked would be:
100 * 4000 * 10% = Rs.40,000.
This means that you would be required to allocate at least Rs.40,000 to take a position in margin segment.
For placing the square off order (if you had purchased, then for placing the sell order), select the Margin Positions link, in that you find "Square off" link, click the same and place the square off order.
For viewing the stocks which are tradable in Margin and Margin Plus trading, we request you to follow the below procedure:
1. Login to our website www.icicidirect.com.2. Select "Stock List" option in "Equity" section.3. Select "Product" as Margin/Margin Plus.4. Select "Exchange" as NSE.5. Click on "Go" button.
Once you follow the procedure, you would be able to see the list of stocks which are tradable under Margin/Margin Plus. You can also check the margin percentage required for a particular scrip.
Margin PLUS trading offers an order placement feature through which you can take a intra-day position in the equity segment and at the same time, place a cover order for this position specifying the Stop Loss Trigger Price and the limit price. This cover order will help you to limit the loss, if any, on the position.
How does Margin Plus work?At the time of taking a position in Margin Plus, you would also be required to specify a Stop Loss Order, and hence limiting your loss to that extent. Since the risk is now limited to the difference between your Buy/Sell rate and the Stop loss Order price, margin will be primarily based on this difference.
FeaturesMargin Plus is available for intraday trading in more than100 stocks on www.icicidirect.com site.Margin requirement could be as low as 5%. Helps to limit your loss through a Stop Loss Order. Open Margin Plus positions can be closed any time before the End of Settlement timings as specified by ICICIdirect.com Auto Square off process to help you close your open positions at the End of the Day. How to place a Margin Plus order?Allocate the funds for trading in Equity segment. Select the link "Margin Plus order" on the trading page. Select the Buy/Sell option and the Stock for trading. (Orders may be placed only during market hours)The first Buy/Sell order has to be a market order. At the time of placing this order, also select a cover Stop Loss Trigger Price (SLTP) order. Example of a Margin Plus order: If you place a buy order in Margin Plus for 100 shares of XYZ Co at market price, then your order will look like: Buy order at Rs.100 (got executed at Market price) for 100 shares. Cover order (Sell order) SLTP Rs.98. Limit Price (Rs.98 minus 5% of Rs.98) Rs.93. Where as, 5% is a minimum difference for the script as per Stock List. In this Scenario Margin Blocked per share will be: Rs.100 - Rs.93 = Rs.7.00
Hence, total margin blocked will be Rs.700 (Rs.7 * 100).
You have to square of your position by 2:45 p.m. Otherwise system places the square off order at market price.
Once you place the order, if you want to track your profit or loss you are making at that moment, you may check the same from "MarginPlus Position" link.
If you are in profits and if you want to square off your position, you have to select the "Modify" option, the square off order page opens and select the order type as "Market" and "Submit". Once you do the same the order would be executed at the current market price.
If you are going in losses, SLTP would be triggered once market price matches with the SLTP and you will be out of the market.
We like to inform you that there is an option called as BTST.
BTST means Buy Today Sell Tomorrow. The BTST is used only for selling the stocks. After purchasing the stocks, if you want to sell the stocks before they credit to your demat account, you go for BTST facility.
Incase you purchase some shares today and if you want to sell the shares tomorrow or day after tomorrow, you have to check whether that stock is having Buy Today and Sell Tomorrow (BTST) option or not. For crediting the shares into your account it takes Trading day T, T+1 and T+2 working days.
If you want to sell your scripts in BTST on T+1 or T+2 working day, you need to sell them from the "Security Projection" option which is in the Equity Trading page. If that script is under BTST you find a link called "BTST Sell" and you have to click that link and you will be getting a BTST Sell page from where you can place the order on T+1 or T+2 working day to sell the shares and this BTST facility is available only under NSE Exchange.
Generally, if you want to sell shares in BTST, you need to check whether the stock is listed under BTST segment or not. To check the same you need to follow the below mentioned procedure:
Visit our site www.icicidirect.com. Go to "Stock List" option. Give the Stock name in Stock option . Select the Exchange as NSE. Under Product drop down box, select BTST. Click "Go".Once you click, you will be able to know whether the share which you have given is listed under BTST or not.