great to see the peak margin notification alert on my mobile app today. Users now will be well aware beforehand how margins would be available on T and T+1 day.
For blocked fund(20%), i will look forward to see that feature in my account.
thumbs up to zerodha for such a fast moving mechanics.
Can you elaborate?
You can also go through the above linked post to understand everything in detail.
Is this related to Intraday Equity ?
It is about both intraday equity as well as F&O.
I read everything. I just donât understand 2nd order effect.
It is about Margin reporting, earlier brokers used to report margins at the EOD, now Clearing Corporation will take snapshots throughout the trading hours to ensure there are sufficient margins available for the trade.
Profit will settle on T+2 day. It is going to be settle before market open on T+2 day ?
Yes, this will be available for use on T+2 day.
Margin calculator shows 60K requirement for buying 4 lots 30000 CE and selling 4 lots 31000 CE. But in reality after buying 4 lots CE it is not allowed to sell 4 lots CE though I have more than 1 lakh in my account. What am doing wrong? Please clarifyâŚ
Margin displayed on margin calculator does not include the amount of premium you have to pay to take Long Option position. You will have to add the amount (Premium * Lot Size) needed to purchase the Options to the 60k margin.
I only do delivery based positional trades with full amount. My question is why my 20% funds are blocked when I sell from my demat. Whatâs the logic of this concept? Why should I wait for 1 day to get my own funds?
Why is no brokers, investors and big investors not against such nonsense rules.
This is due to peak margin reporting, brokers 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.
This rule is same across brokers.
I generally trade in Options. Its been a week since Peak Margin Reporting implementation. How would a Client know what is his Peak Margin Utilisation. No Report for the same is received by us. Also Nothing about Penalty % mentioned. What I have understood is Adhoc Penalty would be levied without any Calculation support and Client would be helpless as No Report for Peak margin would be provided.
Am I Right?
If you are option trader then you must be covered, as we mentioned above there will be two cases where clients can face penalty, they should be mindfull of that.
Can u please help me out with how peak margin penalty affects options hedged strategies players⌠Say I have shorted an OTM Call first and bought Far OTM as hedge, Now, In order to take this position itself, I will need to short first and buy later due to OI restrictions. Also, In order to exit the strategy, I generally used to just select all positions and give exit. Will this lead to penalty? If so, what kind of a penalty are we looking at ?
Thanks!!
Ideally now you should first exit Short position and then square-off Long position if that is hedge position and you donât have additional free cash.
The penalty is similar to what exchange charges for margin shortfall for overnight positions, you can learn more about this here.
I could not see any changes in the system from Dec 1st. Can anyone please help me to understand what will be the effect in the below scenario where I have Rs. 10,000 in my trading account. If today, (December 10, 2020) I can buy under MIS 1250 stocks with a market price of 100 rupees, what will be the number of stocks available under MIS for me on or after September 1, 2021 if there is no change in the market price.
Will there be any effect if I do only intraday trading in stocks limiting my trades as per the margin available at the time of placing the order. Sometimes when I place an order without keeping balance in the account and after execution price direction changes and the trade is going on loss for a few minutes or hours. I get an SMS that I have utilised the maximum available margin. Does this attract any penaly currently (December 1 onwards) or in the future?
Will there be any blockage of funds if I am doing only intraday trading on stocks and even that is only for a few minutes a day?
Currently if there is 10x leverage offered, you can purchase shares worth 100,000 in MIS with funds of 10,000; from Sep 2021 onwards maximum leverage offered will be 5x, so with 10k capital you can purchase shares worth 50,000.
From December 1st, Peak Margin rules are applicable and any shortfall in margin during trading hours will result in peak margin penalty, so it is better to maintain adequate funds in your account and avoid situations like this.
If you have made Intraday profits, this will be available only after settlement is done on T+2 day. The initial funds which you use for taking trades will be available immediately when you square-off your position to take other trades.