My question is related to Sensibull and overall margin requirements.
As seen in the screenshot there are two items funds needed and margin needed to enter a spread. I want to know:
Funds needed - Is 30k the amount of cash required in my account to take the trade? When I say cash I mean free cash and not funds visible in my account by the way of pledging my holdings?
Margin needed - Does this mean over and above funds needed, I need to also provide a margin of 23.48k?
Margin from pledging of shares - If I have funds available by way of pledging then do I only get to use these funds to fund upto 50% of the margin needed i.e. 23.48/2 or can I use these shares to fund 100% of the margin needed?
I understand that I can only use the margin I get by way of pledging on the sell leg of the spread and not on the buy leg, does this mean that I will have to shell out additional funds to execute buy leg of a spread?
These are the questions in my mind also. But zerodha won’t answer these nor they put clear cut explanation anywhere as far as i know. At best they will keep everyone guessing so that retail traders get into mistake so that they can charge a penalty. Dirty tricks they play. Hoping this catches someones eyes and care to answer.
To determine if you will have a margin call, we need to calculate the margin level, which is the ratio of the margin available to the total margin required.
Margin level = (Margin available / Total margin required) x 100%
A margin level of less than 100% indicates that there is a risk of a margin call. In this case, your margin level is 78.99%, which means that you have a buffer of 21.01% before a margin call is triggered.
Therefore, if the value of your investments decreases by more than 21.01%, you may receive a margin call from your broker asking you to deposit more funds or securities to maintain the required margin level. If the value of your investments does not decrease by more than 21.01%, you should not receive a margin call.
mate this doesn’t even make sense. Your formula is implying the lesser money I hold in margins, the margin call buffer increases. did u meant to say the opposite?
