If my account is going to result in debit balance because of a positional trade (option selling), will Kite/Zerodha warn me before taking the trade?
Else, If I consider it gets calculated end of the day, then also any alert notification(apart from daily statement) will be sent to the user stating that my account resulted in debit balance?
I have pledged liquidbees+stocks and some cash balance as well. Sometimes take/adjust position in hurry without noticing the cash ratios. So it may results in debit balance unknowingly, thats why want to know how to avoid this scenario or at least will add money next day to avoid interest amount.
No, not possible as of now, if one miss to check before trade then they can check after trade and adjust accordingly.
Q;
What if i pledged my MFs and my mutual fund investment going down .
Does 0.05% interest rule also apply on loss on pleaged mutual fund .
No, there wonât be any interest applicable. Only the value of collateral will change according to current value of your investment. You can learn more here.
Hey guysâŚthe peak margin requirements are creating a lot of confusion. Even the zerodha support is not able to explain it properly. Just wanted to know is it possible for us to get the margin statement in the same day? Currently I get it in the morning the following dayâŚand even the console update is happening at T+1.
Itâs frustrating because even after maintaining a positive fund balance every dayâŚhave to pay margin penalty and interest for maintaining negative balance ( I think this is also questionable as I should either be paying margin penalty or interest on negative fund balance, but not both)
Hi. Is pledging MFs brought via coin on zerodha live for both liquid as well as non-cash MFs on kite? If not, when can we expect this?
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Hi,
Could anyone (someone from zerodha or any senior trader) please guide me as to by how much will the short far otm stock option margin increase generally on Wednesday and Thursday (just before monthly expiry). Is it full value of underlying contract or some percentage of it (i need just a rough estimate) ? Saw related posts on z-connect but couldnât get a clear cut answer.
Will I be charged interest if I use the pledged amount only for intraday option writing? I always square off my positions before market close. I am using all the margin available to trade after pledging my shares.
Request clarity please.
The margin requirement will increase on expiry day, to 40% of the contract value or SPAN + Exposure whichever is higher. You can learn more here.
Hi, This is Abhishek, a Zerodha user, need one help regarding Collaterals.
If I pledge any Liquid Mutual fund( listed in Zerodha list of approved fund) and take position on this collateral money, then would I be charged this 0.05% interest on daily basis? A bit confused on this. Can anyone explain.( I trade only on FNO and for longer duration)
And if I buy any listed Mutual fund from the approved list and maintained 1:1 cash collateral ration, then would I be charged this 0.05% interest perday
For F&O positions, minimum 50% margins have to come in cash or equivalent and remaining 50% can come from collateral margin. Interest will be applicable only if youâre using excessive collateral margin (ie. > 50%).
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suppose i have 50000 in cash and 60000 in collateral margin. i take position for 100000 (1:1).
My MTM is at -5000 will the intraday peak margin penalty be applicable as this money is from collateral ?
Nope, intra day m2m doesnât come under peak margin.
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@ShubhS9
Hi, I am holding liquidbees and i want to pledge it to avail margin.
Liquidbees are considered as good as cash so i can trade both long and short options intraday without maintaining 50% cash in my trading account.
There is no interest charged if i do not hold a position overnight.
Can you please confirm if the above statements are correct or not?
You cannot use collateral margin for buying Options, for that youâll need cash. For Shorting Options, you can use the collateral margin. As margin received from pledging LiquidBees is considered as cash equivalent, you can use use the entire margin for overnight positions, there wonât be interest charged.
Is it possible if liquidbees pledged ? Because âŚ
No, even though Liquid Bees are considered as cash equivalent, you cannot use the collateral margin for buying options.
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I have 6lacs+ of funds available and I have unused margin of more than 10 lacs+. I am only having either option selling and Future longs which is taking almost 20lacs of margin. But with unused margin of more than 10lacs and funds more than 6lacs my withdrawable balance is -7lac in angel broking. Any idea I am not able to understand this.
Thanks a lot for help.