As mentioned earlier soon we will be giving basket orders, one can add multiple orders at a time and check total margin at a time. Also even now one can check individually on order window and place, I am not sure how tough is that but yeah each user is different.
Because I am confused with your point, sometimes you say you are passive investor and mentioning here about sentinel alert, if your GTT is at 310 and if price reaches 300 you want an alert etc price can come to 310 and never reach 300, it can happen multiple times, nothing wrong here but this is action of active users. Also if you are saying if you have multiple orders you are ready to deploy cash in account without earning any interest on it being a passive investor.
Said that this is in our list of things to do.
Please understand humans behave very differently. Like I mentioned above, if LTP is 400 and say I find 300 a good price to buy so that’s where GTT is. But I am also okay with 310 also so that’s where Sentinel is. In between is the grey area. That’s how we human beings are. Flexible and not rigid. Am I making sense?
Remember, I told you that by engaging that 1L in a short term trade or Debt MF I have already earned 4-5k which I would have earned otherwise by keeping that 1L in bank account for a year. So I have actually bought 1 year’s time. And since GTT are valid till 1 year that 1L can sit idle in my trading account, I don’t mind. It has already paid off the bank interest equivalent amount already. So, it is more of a sniper behavior. I can wait and wait and wait standstill for a year now.
Like I told you each human is different. And we behave differently. How I behave, does not mean how others behave too. But as someone who is hands-on building the product, I hope I have added some value to your thinking process, widening the spectrum.
Man this conversation is laugh riot!!
When lesser intelligent traders trade they do either or all of following things.
They allocate specific fix amount to each position. So they know how much capital is required beforehand.
They keep trade logs. So their GTTs are recorded on paper with pen. No need to mug up everything. Just see your logs.
Those traders who are 5th fail use following technique as they have no ability or intelligence to compete with Shakuntala Devi.
GTT Limit is 237. Quantity is 977. So total amount required is 250*1000 = 250000. Real amt is 231549.
Ahh no, it won’t add much value, just for sake of doing we should not. It will be shown in margin used as negative number once sold or even before selling on holdings it will show current value.
@siva@Matti
Plz do add negative margins calculations as well. Suppose I have a spread and I want to remove some of the hedge lots. This show margin as 0, but in reality additional margin will get blocked. So, if I have no spare margin left, I think I order will get cancelled, although it is squaring off order only.
In such cases calculating extra margin that will be blocked (-ve) is very useful !
TIA
Suppose I have a spread in place and no extra margin left.
If I decide to sell/square off/exit few of the lots from buy leg, do such order get rejected due to insufficient margins, or is the order executed and margin shortfall is reported to the client?
This will have to change asap as going forward penalty is on broker and not traders.
Have SEBI provided any time limit to fulfill margin shortfall or the peak margin gets fixed as soon as margin shortfall occurs?
Now this is very serious!!!
Everytime I use kite position page to exit multiple positions, the buy leg gets exited first and Sell leg momentarily later. And I get SMSs, emails etc notifying the margin shortfall.
Will I have to pay fines for that?
Also you didn’t mention time limits.
If I do not have sufficient margins before taking a position, and zerodha allows me to take positions - fine is on Zerodha.
And as you said - if I exit my hedge leg, effectively increasing my margin requirement, the fine will be on me.
But is there any time limit to fulfill obligation? Like within 1 hr or by day end etc?
You mentioned somewhere that after some time when new rules come in brokers can’t pass it on clients . If even after new rules margin penalty can be passed to client then brokers would easily allow clients to take postitions from full amount received from stock sell or long options sell and pay penalty in the same way as it is now.
This is weird?
Plz answer one by one
I have 10 spreads margin blocked is 3 L. (For naked sell side 10 lots its 15 L)
Now I square off buy legs. I got margin shortfall SMS of 12 L. I squared off short legs as well within 10 secs.
1a. Do 15L gets recorded as peak margin for the day, as it was indeed my margin requirement for hose odd 10 seconds between these two sq off trades?
1b. Do I need to bring in that 15 L by EOD?
1c. Will there be fine?
Now I square off buy legs. I got margin shortfall SMS of 12 L. I ignored it & I squared off short leg after an hour.
Q 2a,b,c are same as above?
Now I square off buy legs. I got margin shortfall SMS of 12 L. I ignored it & I squared off short leg after 3:20 PM.
Again questions remain same.
Now all three scenarios are exact same except the period between two trades i.e the time I remain in margin shortfall.
So unless there is some mechanism to keep tab on time, SEBI can’t punish scenario 3 and just let go of scenario 1.
No penalty in any case, all are fine. As I said upfront margin is important, after that what happens is not in anyone’s control.If you fail to close shorts before 3.30 and carried for next day then penalty is on client. Got it?
