Currently if I have to use 90% or more of my capital to take a position on Banknifty then I have to split the order into multiple parts.
For examples suppose I need to take a spread with 1000 quantities of BNF option sell and buy. Due to the OI restriction Zerodha doesn’t allow you to buy options (NRML). So, I have to sell first and then buy. But again, selling takes more margin so my order split quantity is something like 200 - 200 -100 - 100 - 75 -75 - 50 -50.
As you can see what should be just 1 basket order consisting of 2 legs is now 8 basket orders with the same 2 legs but with decreasing quantity. So I am paying 8x the brokerage I should be normally paying.
With the above given fact, my brokerage costs are generally huge. Furthermore, there is no financial incentive for Zerodha to do something about this. On the contrary they are going to lose a lot of money if this issue gets fixed.
Right now, users are allowed to buy options using MIS (Intraday). I am assuming the OI band calculation only takes place at the EOD thus this arrangement works out. Now coming to my final question -
Why can’t there be an option to convert a basket of positions (say a sell leg and a buy leg, properly hedged) together to NRML from MIS if the client has sufficient funds to do so and he has both positions with them.
That way, with just 1 order I can take my position.
What’s stopping you guys from doing this? The OI restriction is BY FAR THE BIGGEST ISSUE IN ZERODHA. Why isn’t this a priority? Right now, even moving the hedges further down or up is a huge hassle in Zerodha. What is your view on this @nithin@siva
Also I would prefer if “do not take position with full capital” is not the answer. As a client it should be up to me what positions I wish to take.
Also @siva why can’t I convert my MIS buy order to NRML if I have unhedged sell position in NRML? Is it another tactic used by Zerodha to prevent it’s clients who are trying to save brokerage?
You are right, but currently due to OI thing it is not possible.
Not sure what make you think that way, internally we are trying to find different ways to contain this, even for us this is one of the top most priority as we are loosing so many clients to other brokers for just this reason.
Missed this, this is not scam but a genuine regulatory block which is stopping us from not loosing clients and revenues. Said that we are working on few things, hoping will be fixed in coming few months.
