Dear Dhan Team,
I hope this message finds you well. I recently engaged in trading utilizing the Margin Trading Facility (MTF) for the first time on 19th March. Firstly, I would like to extend my appreciation for your esteemed brokerage services in India.
Upon reviewing my MTF statement, I encountered some aspects that have left me perplexed and would greatly appreciate clarification on the following points:
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Funded Value: a. Could you please elaborate on the concept of “Funded Value”? My understanding suggests it represents the total traded value. For instance, in my recent trade for Syngene International, with a Buy price of 674.00 and a quantity of 41, the calculated total is 27634.00. However, the reported funded value stands at 27666.97. I am eager to understand the disparity between these figures.
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CL Rate: I noticed a value labeled as “CL Rate” displaying 676.05. Despite my efforts, I am unable to discern its significance. I presume it may be related to the buy price of 674. Could you please elucidate what the “CL Rate” represents and why there exists a variance?
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Margin Required: The statement indicates a figure for “Margin Required” amounting to -5718.76 in my case. I seek clarification on the interpretation and implications of this value.
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Funded Amount: I am keen to ascertain the exact amount funded through MTF, particularly considering the utilization of 2x leverage during my trade execution. Given that I possess additional funds in my trading account, I am curious about the distribution of funds and leverage utilization.
My inquiry stems from a desire to comprehensively understand the nuances of MTF, thereby enabling me to formulate informed risk management strategies.
Your prompt response to my queries would be greatly valued. Thank you for your attention to this matter. I anticipate your prompt and detailed reply.
Thanks,
Anandu