Cash Component Clarification

[AlgoEye]

I think if its not roll back , than Majority of Zerodha’s business is gone!!

[Krishnakumar]

@Meher_Smaran can you comment on this. Its creating a lot of confusion

[PK123]

Thanks @AlgoEye and @viswaram.

[viswaram]

Do not jump ship without full research. A few things in Kotak are not ideal for the new generation traders.

[AlgoEye]

I don’t wanna leave Z but this implementation has left me no choice, I can’t sell my Debt funds for cash equivalent as i will loose my indexation benefits as i bought them before 31st march 2023. I will loose majority of profits with interest charges.

What few things are not ideal there, apart from glitches ?

[viswaram]

1. You cannot short strikes > 15% range
2. Basket orders are not available on the NEST terminal
3. Equity has a 0.25% brokerage
4. To redeem a pledged mutual fund transferred from other brokers, you have to send 2 emails - first to unpledge it and then to redeem it. Since the response to the email takes 24hrs, the entire process will take a while.

[VijayNair]

@viswaram

Equity has a 0.25% brokerage

But ZERO intraday F&O brokerage - lets not forget that
Also if you are under 30 - ZERO brokerage for every damn thing.

[Krishnakumar]

If you pledge the cash equivalents then there is no DPC / Interest Charges
Why to sell them then?

[Prateek_Malpani]

@viswaram

To redeem a pledged mutual fund transferred from other brokers, you have to send 2 emails - first to unpledge it and then to redeem it. Since the response to the email takes 24hrs, the entire process will take a while.

Isn’t that the case in Zerodha as well. If you are holding Debt MF, you would first need to unpledge and then sell them the next day. The instant sell without unpledging is only limited to equities. Isn’t that correct?

[AlgoEye]

Yup, but i have only 10-20 % as CASH equivalent. Had i known this before 31st March 2023 i would have plan better. Govt gave only 2 days to plan just how Zerodha gave 2 hours.No body care for customers in this country!! Effective Immediatily wala culture hai

[VijayNair]

It’s all for your good only boys

[rahul30]

Just received a mail from Zerodha.
Summary is “We will notify you of any decision to charge interest on intraday positions in advance.”

[MohammedFaisal]

@sachinsp15

Do we need to keep 50% cash/cash component for intraday positions also or only for overnight position?

@rahul30

Can someone please clarify if I need to bring forward 50% of my capital requirement in cash?

Since this email has led to confusion, please refer to this post clarifying the same

Clarification on delayed payment charges on non cash collateral margin utilisation

We emailed some of our clients about delayed payment charges on non-cash collateral margin utilisation which led to some confusion, below is a clarification on the same. The clearing corporation blocks margins in the proportion of 50:50 for all positions taken by clients, So if you have margins only in the form of collaterals by pledging stocks, the cash component required for such margins is blocked from the broker’s own funds. This applies for both intraday & overnight positions. In other wo…

[rahul30]

Received the mail regarding the same.
Thank you!

[Dorkstar1]

@ShubhS9 I was following this thread on Dhan, wanted to understand does Zerodha charge interest on peak margins or EOD margins? I wanted to start trading derivatives but wanted to make a choice who to trade with. @VijayNair @AlgoEye @viswaram can you guys tell me based on your experience?

(Responded) Interest charged on positions for peak margins

[viswaram]

@Dorkstar1

I wanted to start trading derivatives

If you are starting a career in derivatives trading, there are many other priorities to attend first, and “peak margin” is not something you should be worried about now.

[Dorkstar1]

@viswaram

If you are starting a career in derivatives trading, there are many other priorities to attend first, and “peak margin” is not something you should be worried about now.

Bro, I’m trading on Angel one, and now they’re charging interest on margin utlisation over 10L, the interest is extra cost. I’m asking if Zerodha also charges

[siva]

@Dorkstar1

Zerodha charge interest on peak margins or EOD margins?

For using collateral we don’t charge interest on peak margins but only based on EOD, so one can use non cash collateral also for intraday trading without any interest penalty.

[NEOXY_Gaming]

@siva @nithin is there any change in this ?

Because i am taking intraday F&O positions (NRML Order but closing it before 3:20PM) on 100% non cash Collateral margin

is Zerodha now charging any Interest on intraday position on 100% non cash collateral ?

because i called at your support and they are saying that zerodha is charging interest on intraday position now. is it true ?

[siva]

@NEOXY_Gaming

is Zerodha now charging any Interest on intraday position on 100% non cash collateral ?

We don’t charge as of now.