Changes in margin requirements from 1st Sep, 2020

Thanks Nithin, I still remember the day, how Zerodha explained NSEL Scam in simpler way.

Thanks for everything.

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

Request to read the post before asking. No upfront margin is required to sell T+1.

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.

Hmm… where did you read that? Did you read this post?

@siva you can come at least margin funding
And please update new list of pledgable securities in mutual fund

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.

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@nithin

Couple of feedbacks … Give a thought and let me know your/team feedback.

  1. Intraday margin that is blocked for T+2. Can we have a mechanism or place where as a user we can see the carry amount along with date to be adjusted. This would be helpful to plan. Something like a intraday carry log may suffice.

  2. This is a seperate feedback. Sorry but since you may have a glance here so framing it here. A dark theme is highly desired on kite web. Too much strain on eyes pl.

Thanks much.

Hi,

I trade in equity intraday.

Till yesterday, Zerodha gave 10x, 5x and 4x margins on Wipro, Cholafin and IBULHSNGFIN.

How will this change and what will be the timeline?

Eventually, leverage for all stocks will gradually decrease to 5x, is that it? and from Dec’21, all stocks will continue to have a maximum leverage of 5x?

Yeah, will take sometime though.

Will do some changes this week or next.

This should be out in a week.

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@siva i am finding peak margin little confusing , say if i sell holdings worth 1 lakh and take 1 lot of nifty futures , then square it off eod or any other position or overall margin blocked reduces and buy back the holdings . will there be any change in the above process.

No changes, also peak margins are from dec 1st, ignore it till that time, who knows we may get few more changes to it.

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If pledged shares are within my demat, then I should be able to see my holdings in kite but I can’t. Is there anything I am missing here?

Hello,

How does this new arrangement effect the scheme of things with Liquidbees. Can i still keep cash in liquid bees and sell it and buy shares the same day and viceversa, as before?

Pledged will be shown only on console for now, will try to show them on kite also in comings days.

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Yes, you can continue to do the same.

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