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All You Need To Know About NRML Product Type 3 years ago

The stock market is considered as the most lucrative option to multiply your money. However, you need a big chunk of savings to be able to invest in profitable scripts. While wealthy people have no trouble in investing big, it is the middle class that is devoid of stock market benefits. To address this issue and to encourage individuals with limited money to invest in stock markets, products such as NRML have been introduced.

NRML also was known as the normal order, is a delivery based product that offers the investors with the flexibility to purchase stocks with a limited amount of money. Here, the investor/trader can buy a particular script by simply paying the margin amount i.e. a certain percentage of the total amount payable. The rest of the amount can be paid within 7 trading days of purchasing the stock. This type of product is ideal for investors looking to book profits in a short period of time.

Let us understand in detail the working of NRML:

  • NRML allows you to buy your preferable lot of stocks for only a percentage of the total amount.
  • You can pay the amount, either in cash or by keeping stocks as collateral.
  • To pay the remaining balance, you are allowed a period of 7 trading days.

For example, if you need Rs 1 lakh to buy shares of Company A, with NRML you can buy the shares at 10 % of the amount i.e. Rs 10,000. Now you can either sell the stocks or hold to the position by paying the balance. Apart from giving you the opportunity to purchase your desired stocks with the limited amount, NRML also allows you to enjoy other perks such as dividend and bonus if you hold the stocks.

Here is how you can opt for NRML:

  1. First, you need to select a broker that offers this product type. Research well and compare between different brokers. Ensure that your broker offers a user-friendly online trading interface.

  2. Log on to your trading account, select the stocks you want to buy, Select the order type as NRML, pay the margin amount by cash or by keeping stocks as collateral. Ensure that you pay the balance in T + 7 days if you plan on holding the stocks.