Margin increased for my silver positional speead trades. My margin went negative and i saw this today morning. I will fund the same today. My query is whether i will be charged interest. Ideally should not as this margin we shall be allowed to bring next day.
Margin requirements have almost doubled in MCX, even with well hedged portfolios. Impossible to bring that amount before market open. Hope the RMS team will let circuit breakers resolve before attempting to remove profitable positions.
e.g. If the positions include:
Buy X lots: Silver Mini Feb Futures
Sell X lots: Silver Mini June Futures
If say Silver opens again at -6% circuit breaker, then my 1st position is not tradable yet, but it will be foolish to exit the 2nd position as there may be another move remaining once the circuit opens.
I would advice the Zerodha team to at least wait till 9:45 before exiting any clients positions.
Kindly advice here how you guys propose to handle this.
thanks
@nithin_kumrr @Ragavendran_M Kindly look into this.
Also, let me know when is the 2nd batch file from MCX expected in the morning (assuming things settle, so margin requirement may go down…)
Tagging @siva too. Need answer. I have brought in additional margin but even to square off my spread, additional margin will be required. If i get opportunity to book, how to do that assuming additional margin difficult to arrange. To give specific, 25 lac additional margin required to square off silverm feb 6 lots and silver mar 1 lot future spread
It is completely ridiculous. They should either open the market and allow people to square off their positions or give them at least 30 minutes in the morning to do so. Currently, it is very challenging to arrange margin at such short notice. I had a 20 lac margin surplus, but all of a sudden I am short by 13 lacs.
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Margin requirement wont go down for a day. Beginning of the day margin will be maintained through out the day. If margin get increased it may be added but it wont get reduced for the day.
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RMS won’t square off positive leg if other leg is in circuit.
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Thanks @siva
What about the case when none of the spreads is in circuit, but exiting any one requires margin? Will a basket order work in this case?
Nope, you need to transfer the funds as it may lead to hedge break and increase of margin which leads to peak penalty.
New mcx circular for withdrawal of additional Margin in GOLD and SILVER which may help in reducing little bit margin requirements from 1st Feb.
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Thanks, that’s a little help.
But overall it is quite messy, such massive increase in margin overnight.
And on top of it, the credits from the options I sold on Friday are also not available today. I mean, are we still in 1990’s? In this digital era, if you can block someone’s f&o debits the next day, then why can’t the counterparty get access to the f&o credits of possibly the same trade? Request Zerodha to take up this issue with SEBI, exchanges, or DPs or whoever is in charge of this.
thanks
Can you please help me understand this table? Is this 4.5% extra margin applied already from today? Both on long and short options? As well as ELM?
thanks
Thx. So, only for Futures, not for options, as I understand, right?
No extra margin block for the options. If you do futures, additional margin will be applicable.
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