How this amount (Profit from intra day trade, sell from T1 stocks) will be visible on Kite. How interface will look like? When 40% margin from T1 stocks will be released. Will it be next day or T+2 days form when it is sold.
So effectively I have below scenarios:
I buy rs 100 share and sell them on same day for 110. 10 will be available after T+2 days.
If I sell next day, entire 110 will be available?
If the volumes in reality doesn’t go down after this rule’s implementation then it means that like most of the crypto exchanges NSE will be having wash trades just to make the instruments look like being liquid and to encourage participation.
Because of lesser participation of overall public means a thinly liquid market . Such kind of market is highly vulnerable to manipulations. Again retailers loose here. What made sebi do this is beyond anybody’s understanding. U are supporting this move which is seriously appalling
Thanks for explaining everything in detail, I need some clarification on the below
All realised intraday F&O profits and realised Marked to Market (M2M) profit in futures gets settled on T+1 day
Does this mean, let us say I have 50,000 INR in my account and bought 4 lots of Bank nifty 24500 CE at 500 INR and sold them at 600 INR, i.e. profit of 10,000 INR, Now the total margin available is 60,000 INR, will I be able to take fresh option for 60,000 INR or it is limited to 50,000 INR.
As per my knowledge, we were allowed to trade for 60,000 INR and if I carry positions overnight I will need to pay penalty for the difference of 10,000 INR and don’t need to pay any penalty if I don’t carry my positions overnight.
Yeah, you can only use Rs 50,000 on that trading day. The next day you will be able to use the entire Rs 60,000. Unlike before broker can’t allow to carry forward the position, even if client is ready to pay the penalty.
if i bought 1 lakh worth of reliance today and on next day i.e T+1 day i got 5000 profit and i sold it …then can i use that 1lakh and 5 thousand rupees on that day (T+1day).
also do i need to have margin while selling that shares on T+1 day
Hi, Are there any changes to the amount of margin money? If for a position in nifty, I was keeping 50k as margin for 500 rs of premium, what changes from 1 September…amount wise?
i read that buy back of delivery stock not possible. why that ? cant the zerodha make it as intraday trade & credit amout on t+2 day ? also what in this situation, suppose i have 200 shares of reliance and i sold only 100 from it than what should happen ? i am a bit confused about it.
No changes in margin requirements until December 1st, from then onwards margins required to trade F&O in MIS will start increasing in phased manner. More on that has been explained in this post.
Liquidity in any market is driven by market makers. In equity, currency, commodity retail fraternity is not market maker but institutions or quasi institutions. In fact as much as 99.4% currency transactions are dominated by them. I don’t know the equivalent number for stocks in India, a year back it was above 90%…don’t think much changes will be there. Whether institutions will cut down volume, too early to say without data.
Hence liquidity concerns are an excuse by few brokers who were indulged in all sorts of financing the speculation. I remember I was offered even 30-40X margin few years back, it’s not only ruin the system also ruin one’s financial net worth. Always better to build wealth progressively than on margin steroids.
