When you square-off your position, margins are released back in your account, you can use those for taking another trades.
You can take another position with remaining margin, however to purchase Options outside allowed range you will need to first execute Short position, then only you can buy Option outside allowed range.
We need Margin only on 1 lot. If anyone try to sell more than 1 lot Then sebi can to take margin as per new rules or requirement. Please talk to SEBI on behalf of retail traders. Thank youâ:pray:
. What you think about this. @retailtraders @nithin
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@priyank:- Your argument is not correct. You said trading does not contribute anything and so government is not interested. Then why does the govt. encourage sportsmen. Sports is also a zero-sum game. Sports is not useful to anyone and the economy (there is lot of black money in it, in some cases). The only good thing about sports is that it may make you better fit physically. But that kind of benefit is there with trading also. You develop so many qualities that only traders have. It is learnt over years of practice and dedication and discipline. This is not gambling. Even a successful CEO of a company will fail miserably if he is asked to do trading.
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@anupam:- Your point is very valid. I have always thought that LOT SIZE should be brought down for Nifty , bank nifty and stocks also, so that small traders will be able to do hedging of their small positions. I would suggest bringing down the lot size to at least 1/4th of what it is now. This will protect small traders in a big way. Will Nithin suggest this to SEBI on priority.?
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@nithin:- I hear that SEBI is doing what is good for small traders. If this is true, then they should immediately reduce the LOT SIZE of all futures & options contracts. For Nifty it is now 75. It should be brought down to 15 and for Banknifty it should be like 4 or 5. This way small traders can hedge their positions in stocks or futures using these contracts; they will be able to participate in F&O effectively. At present we have knowledge but not enough capital to participate effectively. This reduction will protect small traders in a big way. Will you please suggest this to SEBI on priority.?
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I both agree and disagree with SEBI. The ultimate goal should be removal of Margin money totally. Who pays for the interest on the margin money when a trader takes a position on a derivative contract 3 months in advance? Allowing margin money is risk in itself. Let so called big player with big money pay in full ⌠why do they need margin money? Or is it market structure skewed by SEBI to favour big players only? Driving away retailer from derivative segments will prevent them from hedging their positions. And big players will thus be able to manipulate market and suck the blood out from retailers. Thats what happened in 2008. It is going to happen again in future. SEBI is just ensuring that. Let it be level playing field. But SEBI wont do it. Because Govt mop up big tax revenues from huge volumes of FII and big players.
So the only group that wonât be affected by this change is option buyers. Many retail traders will have to switch to option buying to make any serious profit from day trading. I think, as a result of all this, people will end up losing more money than before due to option buying.
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Very good point. For another e.g., Indusind Bank, lot size is 800. Wow!!!
Hi⌠I have 2 doubts.
- This rule is only for FNO stocks ? or for all stocks⌠? For Ex: IRCTC is a non FNO stock and has 11x. it will reduce to 5x.?
- This rule is also for MCX ?
please anyone clarify
For all stocks, margin requirements will go up in phased manner starting December 1st and from September 2021 maximum leverage which can be will be 5x.
Yes, new rules apply for all F&O (Equity, Currency, Commodity).
I have a doubt on Future LONG positions. If I have LONG positions bought last week, will the account start showing âinsufficient fund in the accountâ from tomorrow?
Please clarify this. TIA
Eg. NIFTY 10th DEC 13500 CE
Assuming that I am buying this option - 1 lot (75 units) at INR 1841 & selling it (intraday)
In this case, the buying premium (INR 1841) would suffice or, should I have extra margin for this buy / sell transaction?
Even today, intraday and nrml margin is the same in F&O. Many months ago, MIS column was removed from Zerodha Margin Calculator, all that exists is NRML column so even today there is no distinction between MIS and NRML in Futures & Options? @ShubhS9
Seems like SEBI is intent upon pushing out the retailers from the futures and options markets.
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Margin requirements will not increase for overnight positions, it will remain the same.
Thanks Shubh for a quick reply.
You do not need additional margins to buy Options, you only need the premium.
we support ur views sir on sebi new margin rules not favoring higher margins. Existing margin rules should not be changed. Just because Karvy defaulted everything should not become autocratic. SEBI is interfering everywhere and showing their autocracy. When nifty is at 52 weeks high why we need double margin to buy. india vix is stable nifty is at all time high. So margin should be lesser because risk for buying is less. small traders trade only in 1 lot or 2 lot maximum at a time. for 1 lot and 2 lot no change in margin should be made. Let the broker square off when it is in loss by doing auto cut off beyond a loss point. Let the broker take a decision on margin. Sebi should not interfer on intraday margin. Only in overnight postin margin can increase. For 1 to 2 lot no change in margins for intraday should be there.
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