At the outset first let me congratulate you for ALL the milestones you have achieved.
Is Autosquare off necessary for zerodha on contracts which are about to Expire?
Why don’t you consider ignoring the contracts from auto square-off which are any way expire going to expire in 10 mins (ie 15.20 to 15.30).
I don’t find any risks involved to zerodha on ignoring these contracts as they are any way settled in cash by the exchange with out any carry forward or am I missing any risks involved as a broker.
Advantages of Ignoring them.
We as a client might mostly profit from contracts which are going to expire out of the money.
(Most of my MIS Sell trades have closed at zero value)
MIS as a product isn’t mapped scrip/contract wise. It is one product type across all instruments and strikes in equity. So the rule we can set is the same for all. Our systems (no other brokers that I know of as well) can’t selectively choose strikes and say don’t square off MIS at 3.20 pm. Btw, even if we could, the effort involved every Thursday to selectively disable strikes will actually add a lot more load on the servers.
Btw, I think regulators will stop all intraday leverage on F&O in the next few months.
“Btw, I think regulators will stop all intraday leverage on F&O in the next few months.”
Is it because of physical settlements or some new regulations?
Same reason why margins have gone up over the last few months. Reduce the leverage and hence the risk in the system. Trying to protect against black swan events. They are more concerned now because the value of F&O transactions have gone up over the last few years.
