Intraday 10X leverage

[Sleepy_Weasel]

Hi Nithin @nithin

Just wanted your views upon why did SEBI stopped intraday leverage for traders? Life would have been so much easy if we have it enabled for zerodha atleast for intraday trading purposes … additionally some of the local brokers still offers 5x margins for intraday trading not sure how they do it … is that a possibility in near future for zerodha as well

[nithin]

@Sleepy_Weasel

Just wanted your views upon why did SEBI stopped intraday leverage for traders?

Long answer, you can check for the history here.

Peak margin requirements from Sep 1st 2021 & its effects

Starting Sep 1, 2021, there won’t be any additional intraday leverage for equity (maximum 5 times) and F&O trades. This regulation is going to affect intraday traders. Since intraday traders generate the maximum volumes and revenues, this will affect the entire brokerage industry significantly as well. Firstly, what is the regulation? I had explained this earlier, do check this post for details. Here’s the gist: Until now, brokerage firms could offer any amount of intraday leverage, and now…

@Sleepy_Weasel

additionally some of the local brokers still offers 5x margins for intraday trading not sure how they do it

Even at Zerodha you can trade stocks for intraday with 5x leverage. This is the max leverage that SEBI allows now. No additional leverage is allowed only on F&O, and that is for every broker.

[Sleepy_Weasel]

Ohh but I heard or know off some brokers which are giving off leverage for intraday F&O positions… any remote possibility you see for this leverage coming back for F&O’s?

[nithin]

@Sleepy_Weasel

Ohh but I heard or know off some brokers which are giving off leverage for intraday F&O positions… any remote possibility you see for this leverage coming back for F&O’s?

Ah no, if someone offers leverage on F&O, they are breaking all regulations out there. And no, I don’t think additional leverage is returning in F&O.