The process of converting trades from their original type and intent is known as Position Conversion. For example, the act of converting an intraday trade into delivery is called conversion of trade or position conversion. To understand this feature better, you must know the different order types you can enter into on our Angel One app. Below are the types:
- Intraday – Where you want to buy and sell the stock within the same day (T-day)
- Delivery – Where you hold the stock for a longer time
- Margin – Where you opt for Margin Trading Facility (MTF)
- Intraday – Where you buy and sell a scrip within the same day of trading (T-day)
- Carry Forward – Where you take the position that stretches for more than 1 day
When should you opt for conversion of trades?
You can choose to convert your trade for any of the following reasons:
- If you want to hold on to your position from intraday trade
- If you think the scrip you hold will not achieve the target price during intraday, you can convert your position into a delivery
- If you want to free your margin and decide to square off on the same day
Position conversion options available on Angel One
The table below will help you understand the conversion options available.
|Original Order Type
|Converted Order Type
|Delivery & Margin
|Intraday & Margin
|Intraday & Delivery
Note: If you are converting position to and from intraday orders, please note that you need to convert the Equity order before 03:15 pm and F&O order before 03:20 pm.
How to convert your position?
Follow the steps below to convert your equity & F&O positions easily on our app:
- Click on the ‘Orders Tab’ on the menu at the bottom after logging
- Go to the ‘Positions’ Tab
- Select ‘Convert’ to change your position
How does it affect your margin requirements?
If position conversion creates a liability, you will have to add funds to your account to maintain margin requirements before converting your position.
For example, you enter an intraday trade for 1 share of ABC company worth Rs. 4000. Now, for intraday, you only have to maintain a margin of Rs. 800 (20% of 4,000). Now your margin requirements will remain unchanged if you convert your intraday to a margin order. However, your margin position will change if you convert it into a delivery trade. You will have to pay the full margin of Span + Exposure i.e. Rs. 4,000.
You can convert your position from intraday to margin or delivery or vice-versa through the Angel One app quickly and conveniently. However, before you opt for position conversion, make sure you have sufficient margin in your account or else your position conversion will fail. To convert your existing position, click here.