Example Scenario

1. Assuming the available balance in the client's trading account is ₹1 lac, the client bought NIFTY futures at 11300, with a margin blocked of ₹96,000.
2. To limit the client's losses at 11275, the client places a stop-loss order at 11275. This exit order does not require any additional margin since it signifies the client's intention to exit their current position.
3. If the client wishes to set a target price at 11350, they can place another sell order to open a new short position at 11350. This is possible only if the client's account's available balance prior to initiating the NIFTY buy was higher than the required margin (i.e., ₹96,000) and they have a positive account balance.
4. The first executed order will be considered the exit order, and the margins blocked for the client's open position will be released.
5. The released margins and the free cash in the client's trading account will be used to open a new position based on their second order.
6. The client should remember to cancel their stop-loss order if their target order is executed, and vice versa. Alternatively, they can use a GTT (Good Till Triggered) order. To learn more about GTT, see What is the Good Till Triggered (GTT) feature?