When does Zerodha will be live with cross currency?
Why does cross currency margin are so high infact 200% of contact value…may be answer will be margin requirement are calculated as per RBI reference rate after converting Cross with INR….but do you think such high margin are logical even for pure intraday traders….
At least for MIS or BO/CO cross currency margin should be only 3-5% because on any given day currency like EUR/USD,GBP/USD,CHF/USD & USD/JPY very low probablity of moving 3-5% up or down. IF I am not wrong even on the day of Brexit GBP/USD moved something around 6-8%….if 3-5% margin as a broker you feel it’s still risky as risk management then try 7-10% ( I know NSE span itself is high but as one among top 3 brokers in India Zerodha should explain NSE about the same and make cross currency successful with huge volumes)
Hope something good will happen in cross currency in terms of margin requirement.
Mahesh Gaddamedi.