you are right sir. sebi moves will kill small traders and retailers. Option selling needs more margins. I cant sell options because of higher margins. only option sellers make big money because risk is very less in reality for option sellers. most of the options goes to zero on expiry. all option buyers loose big money. Cash margins increased so more people will buy options and loose money. upto 1 to 2 lots margin should not be increased intraday square off. overnight positions margins can be increased not in intraday trading. retail traders will vanish with sebi move.
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No such limitation at Zerodha, when you square-off your position margins blocked will be released back in your account which you can use to take other trades. This has been explained in this post.
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Hi, I want to understand how new margin works for Futures positions (Both profit and loss).
Will anything change for below scenarios?
Scenario 1:
Day 1 - I am long one lot Banknifty. 1.6 Lakhs margin is blocked.
Day 2 - I made 10k profit and now want to go short on Banknifty. So I will sell two lots of Banknifty. Currently there will be no additional margin required for converting a long position to short position and I can manage with initial margin of 1.6 lakhs. Will this change in new margin rules? Do I need 3.2 lakhs for this transaction?
Scenario 2:
Day 1 - I am short one lot on Banknifty. 1.6 lakhs margin is blocked.
Day 1 - I made profit of 10k and want to go long now. So I will buy two lots of Banknifty. Currently, there is no additional margin required and I can manage with my initial capital of 1.6 lakhs. Will anything change with respect to new margin rules?
Scenario 3:
Day 1 - I am long one lot Banknifty. 1.6 lakhs is blocked as margin.
Day 2 - No change.
Day 3 - I make loss of 10k and want to go short. So I sell 2 lots of Banknifty. I can manage with 1.6lakhs margin currently. Will this change in new margin requirements?
Thanks in advance.
In each of your scenario, to square-off your open position you do not need any margins. However to increase your position from one lot to two you will need adequate margins in your account. If you have enough funds you can take positions, no issues.
So should I wait for T+1 days to take new futures position if I donât add any new funds?
The margins blocked are released immediately in your account when you square-off your position, this you can use immediately to take another trade.
Though you are talking about taking trade in two lots of Bank Nifty with 1.6 lakhs margin, to take position in two lots of Bank Nifty you will need 3.2 lakhs margin, if you donât have this you wonât be able to take the trade.
Ok thanks @ShubhS9 Actually one lot is for square off and another is for new position. So in the end I will have only 1 lot as my position.
Oh alright. You donât need margins to square-off your position, when you square-off your position the margins released can be used immediately to take another trade.
@ShubhS9 suppose I did a intraday and made a profit of 1000 rupees will that 1000 be add in my account on same trading day or after t+2 days?
The intraday profit you make in Equities gets added to your account on T+2 day, while in F&O it gets added on T+1 day.
Are these rules Exchange specific like applied only to NSE or applicable to both NSE and BSE
Applied for all exchanges.
Request you to plz help me clear few doubts.
Wanted to know few details as Iâm a small time equity trader and used to generate around 4500 - 6500 profits daily dealing only in Equities.
The Share prices and MIS Margin from Zerodha are as follows for the below 5 Stocks which I deal mainly with.
MRF : 77738 / 6296
Honeywell : 31957 / 3230
Page : 22754 / 2186
3M : 21866 / 1938
Shree Cement : 24306 / 2238
My capital is 1 Lac and going by the above Stocks and their current Margins I could buy
MRF : 16 Shares
Honeywell : 31 Shares
Page : 46 Shares
3M : 52 Shares
Shree Cem : 45 Shares
What would be the changes after September 2021 w.r.t VAR + ELM and 5 X Margin and 20 % Deposit. Actually these 3 things are confusing me.
Plz explain me with respect to the above mentioned 5 Stocks.
From September 2021 brokers can provide maximum 5x leverage in MIS, means we have to collect minimum 20% of the trade value.
So under new rules this is how much shares you will be able to purchase in MIS in the above mentioned scrips at the price you have mentioned:
MRF: 6
Honeywell: 15
Page: 21
3M: 22
Shree Cement: 20
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@ShubhS9
Thank you so much Sir but this is just injustice.
Our profits will get less than 50% directly.
It is a question of survival.
Do you think the Brokerage Industry in India will try sort this out with SEBI ? Any idea on it Sir.
Just because Mallya ran away let others run too⌠Just because Laxmi Villas bank collapsed letâs not do anything and let the other banks collapse too⌠Hatâs off to mentality like yours! 
- does this mean margins will be same for MIS, co and bo from dec 1?
- As the margins are increased now and we will need additional funds for trading, will Zerodha be able to provide common margin account for equity and commodity segments as some other brokers like flyers and Alice blue are providing?
What happened when we are selling this option on 104 for nifty and 450 for bank nifty?? We need that 37.5k margin??
2nd thing if we buying or selling future CE 100 and selling on 105 of nifty still we need 37.5k margin??
After buying can i sell at profitable price ???at that time i need this margin 37.5k??
When you buy Options you pay full premium upfront, You donât need margins to exit your position, you can square-off just like you normally do.
No, you donât need margins.