Peak margin is a minimum margin you need to maintain upfront in your account while executing a buy or a sell transaction as per SEBI guidelines. This 20% margin can be in the form of a free ledger balance or approved pledge collateral to be reported to exchange.
For Example, you want to purchase stock worth Rs.40,000/- then as per the peak margin requirement you must have a minimum margin of Rs. 8,000/-.
Note: The minimum margin charged by the Broker is subject to its Risk Management policy and can be more than the Peak margin prescribed by Regulator.
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