BTST help new rules

[traderprofit]

With regards to BTST trades with the new margin rules if I were for example to buy 1 lakh rupees of reliance on Monday then i would need :-

1.On Monday full 1 lakh rupees plus 25,000 (var plus elm) or just 1 lakh rupees?

2.If I am selling on Tuesday morning do I need just 25,000(var plus elm margin) or 1,25,000?

3.If I am selling by chance on Wednesday nothing changes usual as before?

thanks…

[ShubhS9]

@traderprofit

1.On Monday full 1 lakh rupees plus 25,000 (var plus elm) or just 1 lakh rupees?

Only 1 lakh rupees.

@traderprofit

2.If I am selling on Tuesday morning do I need just 25,000(var plus elm margin) or 1,25,000?

3.If I am selling by chance on Wednesday nothing changes usual as before?

You don’t need additional margins to sell stocks from your holdings. You can read this post to know more:

Changes in margin requirements from 1st Sep, 2020

Under the new margin requirements, a minimum of 20% is required to buy a stock and to sell a stock. The margin for selling a stock is exempt if the broker can make an early payin to the exchange - which is debit shares from client demat and give to exchange/clearing corp on same day. In case of BTST, the shares are still not credited to your demat, which means we can’t make an early payin. Which means we need to collect 20% for that sell transaction. When buying a stock we would have collected…

[traderprofit]

Ok so got the BTST part…Further in above example Can i pay just 25,000 margin (var plus elm) and carry forward my cash position indefinitely ?i.e Does zerodha provide leverage on overnight cash positions?

[ShubhS9]

@traderprofit

Can i pay just 25,000 margin (var plus elm) and carry forward my cash position indefinitely ?i.e Does zerodha provide leverage on overnight cash positions?

No, there is no leverage provided for overnight positions, you will have to pay full amount upfront.