Now brokers will not be able to provide leverage like before?

I am not sure what will be change in leverage provided by brokers due to recent changes in rules. @siva @ShubhS9

For example if broker was providing 10x margin for option selling …after new rules they will not be able to provide leverage at all or they will be able to provide at reduced rate?
i.e if I have 15 lac and broker was providing 15x10 = 1.5 crore even for positional …that will be reduced if so how much will be provided now ? @ksksat @maddy_Des

Keep it simple, no additional leverage for fno from Dec 1st. Both span+exposure is needed to initiate any fno trade in any product type with any broker.

So to be clear - lets say I need to have I want to sell nifty 11900 CE and on your margin calc page it shows
Span Rs. 74,686

Exposure margin Rs. 16,643

Premium receivable ? Rs. 1,586

Total margin Rs. 91,329

So I guess Rs. 91239 is required upfront from client but currently do you provide any leverage ?
lets say I have 1 lac Rs. in my account which is a combi of cash and collateral (margin against pledged shares)
so how much leverage do you provide at present for NRML option selling of index ?
I know any leverage any broker provide now will be changed on Dec. 1st but I am asking about current offer of leverage.

There is no leverage provided to Short Options overnight, or when you use NRML order type. You will need full SPAN + Exposure.

And full NRML margins to even short options intraday ?

Yes, from sep 2021, from dec 2020, leverage will go down in phases for intraday.

Sir after this rule from sebi…

Kya hume levarage milegi normal order krne pe futures pe jese avi normally milti h ??
Eg - Now , if I buy 25 lot of banknifty in normal for overnight trade it costs 1.28 lakhs or smthing
So after this sebi rules kya hum itne hi amount pe banknifty ka lot le skte h overnight trade krne k liye futures me
And agr isse sell krta hu 2-3 din baad to kya mjhe alag se v pese kuch rkhne padenge sell krne tym tavi sell ho paegi ya direct sell kr skta hu futures me

@Ravi_Ranjan1 bhai type in english , you are typing in hinglish mixed both , we also want to read your message , :robot:

@Ravi_Ranjan1
BankNifty FUT Pehle se hi Leveraged Product hai toh isme NORMAL ORDER PE SPAN+EXPOSURE MARGIN legega jo ki aapke EXp se 1lot BF pe 1.28lakh hai to sirf utna hi lagega overnight position pe koi extra nahi sell karte samay sirf aap MTM loss (Agar hua toh) bal maintain rakhna.

:slight_smile: