15%-25% “margin” for equities ?
I think SEBI has RETAILOPHOBIA ! It doesnt want us participate in the markets.
@nithin or @siva @Karthik please simplify this news article for all of us.
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Hmm… this isn’t reported correctly. SEBI now wants brokerage firms to ask clients for minimum margins for intraday stock trades as well (Buy and Sell) similar to F&O trades. This isn’t necessarily bad.
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Hi @nithin,
Is this requirement inline with zerodha’s current margin policy. I mean 12.5x for top lower volatility stocks and then higher margins based on volatility of instrument. Does it have any impact on current margin policies of stock brokers like Zerodha?
I find it hard to understand. Does it means that for some one doing an intraday trade value, say, 5 lakhs, needs to deposit 15%, say 75000 with the broker.
How will these effect leverage? And retail traders?
Is it really going to be implemented
@nithin
Aren’t we keeping sufficient margin money while taking an intraday trade in Cash & FNO in Zerodha?
Or SEBI wants something else/more?
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Some people will say our stock market has no liquidity no active traders, whom should we blame?
Leverage will reduce if this circular comes into effect. May be 7 to 8 times one can get intraday leverage on stocks.
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Few brokers are giving upto 40 times leverage and that is the real problem, in many developed economies leverage is also controlled, I personally believe in a way this is a good initiative for long term stability.
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It will announce but no idea on timeline.
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At Zerodha we dont’ allow clients to trade without margins, but the story isn’t the same with other brokers, especially a lot of small to mid-sized ones. I don’t think our clients will be really affected with this.
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What will be difference between MIS and BO/CO in terms of leverage once this is implemented?
If this is implemented then max leverage can’t be more than 7 to 8 times, both in MIS and BO or infact on any intraday product with any broker, but this is little grey area, need to await for few more details.
When zerodha will confirm the new margins? As this will come to effect from 1st Jan 2020
Awaiting more details on this, once it is out we will inform all our clients.
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I think these are not reported correctly, need to wait for few more days to get clarity.
This is good to hear. Though, will leverage for BO - CO orders reduce when this rule comes into effect?
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May not be.