@nithin this is exactly how we handle it in the console P&L. All physically settled ITM options are closed at 0. The entire premium paid or received will show up in the P&L as a loss or profit respectively. Consequently, equity positions are opened at the strike price of the expired option.
In the case of physically settled futures, the futures position is closed at the settlement price of the underlying on the expiry day. This is because there’s an MTM on futures on the expiry day as well. Consequently, equity positions are opened at the settlement price of the stock on the expiry day.
Since the past few days I have been noticing that my “Available cash” is less than the “Opening balance” even if I did not buy any shares. I am an options trader, Today I sold some options so my AC should have been more than the OB. I pledge my holdings for margin so in no circumstance my cash should be used, Is there some new margin rule that I am missing.
PS This is just during market hours and after market everything tallies perfectly
[quote=“nithin, post:162, topic:122428”]
Rs 1.5 crores. We used Rs 90lks to pay as a deposit to get a membership on the exchange, Rs 20lks to do up our office and set up our websites, and Rs 30lks was really what was left on the table to run the business on day 1. We got super lucky to get here without having to raise any more capital after that. I don’t think it is possible to do this today.
If I am not wrong Zerodha was started as prop trading firm. If I may ask if I want to set up a proprietory trading firm today, how much initial capital should I be looking to do it comfortably.
Will around five cr do the job initially ?
No, Zerodha was started as a retail brokerage firm. Yes we did prop trading, but that was not the reason to start Zerodha.
If you want to do prop trading by becoming a member on the exchange, yeah I think atleast Rs 5 crores. Otherwise the exchange deposits and fixed costs (tech, compliance) of being brokerage firm will eat into your capital significantly.