Is there an additional margin charge for using protection on Punch?
No extra margin is required. You can set both stop-loss and target on your position at zero additional cost.
Written By Archit Sunat
Last updated 27 days ago
When you apply Protection to an open position on Punch, the stop-loss and target orders are placed without blocking any additional funds from your account.
How Is This Possible?
Protection works as a linked pair of exit orders on your existing position. Since you already hold the position and the margin for it is already blocked, the stop-loss and target simply define the conditions under which that position will be closed. There is no separate margin requirement for these exit orders.
What This Means for You
You can freely add a stop-loss, a target, or both to any open position.
Your available margin remains unaffected.
You do not need to keep extra funds aside just to use Protection.
This makes it easy to manage risk on every trade without worrying about margin shortfalls.