Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020

this rules is also for equity

New rules apply for both F&O and Equity segment. Would request you to read this post to get clear idea.

for what reson 20% amount is blocked while seling the share

am using my ammouy for buying and seling the shares then for what reson 20% of amount is blocked for 1 day why

I dindnt undestand pl explain am using my cash to buy and sell a share then why 20% amount is blocked for what reson

This is due to Peak Margin reporting, we are now required to block 20% of selling credit as margin until we can debit the shares from your Demat and make it available to the Clearing Corporation (Early payin or EPI), which typically will happen only after the market closes on a trading day.

When you sell holdings you will receive only 80% of the sale value, if there is no other cash available in your account but only this then you will only be able to buy back 80% of the shares, if you add funds then you will be able to buy back 100% of the shares sold.

You can use the funds you have to take multiple trades, no issues.

@ShubhS9 hai any thing will affect the positional traders in option segment in hedging and selling option

this 20% blocking margin is for all the brockers or some limited brockers

The margin requirment for overnight positions is going to remain the same, also you will continue to get margin benefit for hedged positions as well. No changes to this.

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This is for all the brokers.

Any update on this?

Brokers will collect the minimum required margins, but margins are dynamic and change based on volatility and price, so if margin requirement changes and you don’t have sufficient funds to cover change in margin requirement, then the shortfall penalty has to be paid by the client.

The penalty is same as the exchange charges for shortfall in margin for overnight positions, you can know more here.

Hi @ShubhS9 ,

I had read somewhere that Zerodha will allow you to buy Deep OTM Call and Put (outside the range) for both Nifty and Banknifty if it is to hedge an existing postiton.

For eg. If I have shorted 1 Lot of ATM Call and Put (weekly) for both Nifty and Banknifty, would I be able to buy 1 lot 14000CE and 12000PE on Nifty (weekly) and 1 lot each of 32000CE and 27000PE on Banknifty (weekly) as a hedge?
Subject to buying OTM options being done post the short position of the ATM Option.

Is my understanding correct?

Yes right. If you have already taken Short Position, you can buy Options outside allowed range to hedge your position to the extent of quantity you have shorted.

Thanks so much for the super prompt reply :slight_smile:

Today’s my total trade value is 32k in intraday equity 20% min margin means 6400k 25% of this is 1600 I should have the margin in my account but the total margin blocked is double 3.5k can I know y the margins are doulbe

Today i sold one stock frm T1 with the amount of Rs 17464,but the amount showing less with de deducted of around Rs3500.So is this a penelty or wil i get back dat amount .if yes den when wil i b getting dat deduction amount?

You can check the margin requirement on the order window, the max leverage which ca be provided is 20 times but can vary as from scrip to scrip.

This is not a penalty, from today onwards when you sell stocks from your Demat account or T1 holdings, 20% of the sale value will be blocked, this will be given to you the next day. The remaining 80% you can use to trade. We have explained this in detail here, please read.

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