Short answer

Yes, you can place two orders of the opposite transaction type (buy/sell) for the same instrument, even if the required margin for the second order is not available, as long as you have a positive cash balance. This applies to both NRML and MIS product types.

Example scenario

Assuming your available balance in your trading account is ₹1 lakh, you bought NIFTY futures at 11300, with a margin blocked of ₹96,000.

To limit your losses at 11275, you place a stop-loss order at 11275. This exit order does not require any additional margin since it signifies your intention to exit your current position.

If you wish to set a target price at 11350, you can place another sell order to open a new short position at 11350. This is possible only if your account’s available balance prior to initiating the NIFTY buy was higher than the required margin (₹96,000) and you have a positive account balance.

The exchange will consider the first executed order as the exit order, and the margins blocked for your open position will be released.

The exchange will use the released margins and the free cash in your trading account to open a new position based on your second order.

You should remember to cancel your stop-loss order if your target order is executed, and vice versa. Alternatively, you can use a GTT (Good Till Triggered) order.

Did you know? This is not applicable for stocks using CNC product type.