Need clarification on Zerodha Margin

Zerodha
1

Say for example, I have following collateral:

Collateral (Liquid funds) 30,00,000
Collateral (Equity) 30,00,000
Total collateral 60,00,000
Cash 6,00,000

I always do intraday DTE0 F&O selling and buying only which I exit at 3.25 PM, so I want to remove this liquid fund and put money in equity fund for better returns and make this as collateral margin. After this modification my collateral figures will look like below:

Collateral (Liquid funds) 0
Collateral (Equity) 60,00,000
Total collateral 60,00,000
Cash 6,00,000

My question:

  1. Do zerodha allow to do Option selling and buying intraday with above setup? I heard some brokers allowing this.

  2. If yes, any charge is levied?

  3. Consider this scenario:

9:15 AM: I have not taken any position so my margin looks this:

Collateral (Liquid funds) 0
Collateral (Equity) 60,00,000
Total collateral 60,00,000
Cash 6,00,000

10 AM: I sell option contracts. My margin looks like this:

Collateral (Liquid funds) 0
Collateral (Equity) 54,00,000
Cash 0 [I assume zerodha deducts 50% of option selling margin from cash]

10:15 AM: I buy options for hedging & stoploss. I did not close my sell positions
Do Zerodha allow me now? since cash is zero. If yes what is the charge? any restriction on time?

2

Hey,

You can sell options intraday or overnight.

The exchanges require that 50% of the margin for F&O positions must be in cash or cash equivalent collateral, while the remaining 50% can be in non-cash collateral margin.

Option buying isn’t allowed

For more information on margin utilisation please refer to this trading qna post.