New margin framework is here - to benefit hedged positions

that means you are positively discriminated by zerodha! jokes apart, i couldnt buy even 11000 ce june tday!

did u find out what exactly happened and why?

such a weird issue. By mistake I exited the bought put in a bull put spread… The system is neither letting me buy it back, nor letting me square off the sold put and not even letting me convert my position… And now since the buy side is squared off the margin requirement has shot up five times more… I have exhausted all the options. What should I do??!

He didn’t share the client ID with me. @siva do you have an idea of what the issue was?

Btw Arvind, I think Siva’s comment was rude. I have deleted them.

1 Like

Chalo let’s get over it, but I think everybody should be respectful to everybody. CEOs or not: irrespective of.
And I genuinely wanted to know the reason with intention to avoid it in my trading.
I thought for split of a second to tag/ask u but it happened that I replied to nithin.

As per my knowledge there is no issue , I am guessing he might be having open pending order of other leg hence he is not able to square off his existing position.
You have explained it here on dealing those scenarios.

1 Like

Cool, you can check this on dealing with new margin framework scenarios.

1 Like

@nithin, @MohammedFaisal I had communicated about this sometime back. The issue still persists and I am either taking too much risk or losing week after week, Faisal can please call back and help out with the solution? This is about the rejection of OTM strikes

I would suggest you buy a strike price closer to the range and sell at the edge of the range

@nithin, @MohammedFaisal
can you please look into this and help me at the earliest.

A better way to look at it is to formulate strategies using the given range only.

They have risk mitigation processes in place, to help us all avoid unknown and unforeseen risks.

If you are trading only fno, I am sure they would suggest you try orbis

@Joe_Chris, can there be an issue in using Orbis for us traders? I dont understand why there are 2 routes to this?

I think it’s a win-win.

Those who are fno only traders looking for far otm, orbis is the way out, as it won’t affect Zerodha’s OI limitations

Please check this.

This is very complex but we are trying to do something about this, will take more time though.

1 Like

I don’t think it is practical and even if it were exchanges won’t have mechanism for this and even if they have then also margin can’t be reduced to maximum loss.

Its not a win win but win lose situation.
We cannot use pledging with orbis thats loss of nearly 4-5% pa in terms of loss of opportunity.
So no use.

Is there penalty of marging if I adjust any leg of iron condor.

There are few people who does only option buying, it is good for them.

The whole issue is regarding “new breed of traders” that @nithin so often mentioned wrt new margining policy.
We are being screwed by this.

there is mwpl limit for the month of july also.
simple meaning you cannot create short position out of proportion to a certain percentage of underlying you hold

1 Like