If Someone cut his yesterday’s open position (Option Writing) than will he get that margin for today for intraday and if yes will we be able to give 3 times limit on it
Yes, when you square-off your open position, the margins blocked are immediately released in your account, which you can use for trading without any restriction.
Hi,
What about selling and buying options at the same time ? Why does the basket show one amount while when we actually put in the order it requires a different amount ? Is it not updated or so ?
Regards
Hiren
You will continue to get margin benefit for hedged positions, there have been no changes to this.
There should not be much difference, can you give more details?
I was trying to sell DEC13500 CE and buy DEC13400CE. Funds are @64K. Please refer the screenshot, it says margin requirement is @22300. When i executed this basket, it rejected my sell order quoting insufficient balance. The buy order went through.
As you have placed Sell order first in the basket, this will require full SPAN + Exposure margin, as you didn’t have sufficient funds your order was rejected.
Would request you to place Buy order in Basket first followed by Sell order, this way when your buy order is executed you will get margin benefit beforehand and won’t require full SPAN + Exposure margin to execute sell order.
To get better understanding of Basket Order, you can refer to this post, which explains everything in detail.
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Thanks
Continuing the discussion from Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020:
Just wanted to check do we have an estimated date for this.
Do not want to take positions and them pay penalty for intraday margin shortage
@Avi_Garg @ShubhS9
Avi please wait this 20% blocking of ur own demat sale value may be just from Dec 2020. In March 2021 it will become progessively 40% and by sep 2021 100% of sold holdings will not be available to take any position until t+2 when the money will be credited.
Next may be networth rule of viswabathan committee
People say that this whole gymnastics is because mutual fund lobby and institutions were fuming on direct retail participation that too smartly.
Nowadays we retailers became smart in trading and investing without getting panic. It resulted in loss to institutions and fund houses
Further people like me used huge uptick in blue chips to sell and buy back same day akin to earning interest on these demat bluechip stocks.
They wanted to put an end to such huge profit making strategies of retailers
Now that retailers have learnt tricks of gambling den casino owner naturally want to ban entry
Nifty at 7500 they wanted to grab our hdfc shares but instead we added more. That retail community behaviour irked them
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Is the MIS leverage of 3.7X applicable only on Index Option selling only on the first option leg.
For example If I sell BankNifty ATM Call the leverage shown as per the margin needed is 3.7X (39K instead of the full margin of 147K) but if I add a short BankNifty ATM Put the leverage turns out to be much lower 3.2X (53K instead of the full margin of 170K)
If I further add Deep OTM hedge(long 32000 CE and Long 27000 PE) the leverage drops to 2.5X (37K instead of the full margin of 92K).
Hi, have reported this to the team, they are checking this.
You do not get leverage for Buying Options, you will have to pay the entire premium upfront, the margin you see on Margin Calculator does not include the premium you have to pay for the Long Option position while the final margin you see on Basket Order is including the premium you have to pay.
Continuing the discussion from Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020:
The price of the long options is barely rs 600 or so so it should not impact the value by too much.
So this also seems like a case where the leverage on the hedged position is lower. I.e margin benefits not accounted for.
Continuing the discussion from Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020:
IF I PLEDGE MY EQUITY SHARES THE MARGIN RELEASED COULD BE USED FOR PURCHASING SHARES WHICH ARE THERE IN MY DEMAT ACCOUNT ?
This is not correct.
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Hi Ayush, you cannot use the collateral margin recieved from pledging securities to purchase shares, for that you will need cash.
Continuing the discussion from Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020:
BECAUSE OF THIS 20% MARGIN BLOCKAGE SYSTEM, IT HAS RESULTED INTO HUGE LOSSES TO ME. YESTERDAY I.E. 2.12.2020 I SOLD ITC 1000 SHARES - MY 20% MARGIN WAS BLOCKED AND YOU ARE NOT ALLOWING ME TO BUY REMAINING 20% EQUITY SHARE AGAINST PLEDGED SHARES TO TAKE DELIVERY OF EQUITY SHARES. I COULD BUY ONLY 80% AMOUNT OF HEMISPHERE SHARES. NOW HEMISPHERE LTD HAS INCREASED BY ALMOST 22%. SO I AM CLOSING MY ZERODHA ACCOUNT, PLEASE TELL ME THE PROCEDURE TO TRANSFER MY SHARES TO OTHER DEMAT ACCOUNT OF OTHER BROKERAGE HOUSE WHERE I GET FULL SERVICE.
Hi Prateek, the MIS margin requirements are 20% of SPAN margin and 100% Exposure margin, you can check and confirm.
The rules are same across brokers, it is a regulation ,no broker will give you 100%.
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