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

No, not there.

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Many thanks for your response. Really appreciate :blush:

How will this result in penalty? If you sell something from holding, you get 80% funds immediately and if you want to buy back, you can buy back 80% stocks. So how can there be a penalty in this case?

Scenarios in which there can be penalty has been explained here:

I have already read that article. @siva above had mentioned about doing intraday trade. I guess he meant F&O intraday trade rather than equity intraday trade.

What will happen to BTST trades from Sept 2021. I want to know about about margin that can be used when the postion is closed on the next day. Like if I close my posiiton on subsequent day they are blocking 20% of the money. So will this change in the future or it remains same for BTST trades?

You can continue to do BTST, no changes.

This should remain the same.

@hydtrader i have this suspicion. Now in dec it is 20% money not available. Progressively they will add 20% in each quarter and by dec 2021 you will get ur. Funds blocked fullly until settlement on t+2 day.

This rule came because fund managers complained that nowadays retail investors gain interest money everyday just by selling and buying back the shares from their holding using volatality. And that irks them.

Further they will bring a rule that once u sell a stock x on any day you should not buy it again on same day even if u have full money excess in ur trading account

hmm… none of these things you said is right. 20% will remain. This didn’t come because of fund managers and I don’t know what kind of interest you are talking about. There is no rule that will disallow you from buying back the same stock on the day it is sold.

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It is in my wildest imagination and justified by increasingly retail unfriendly decisions

Interest income means retail investors sold holdings and bought back on the same day in profit. This created lot of loss to institutions. Retail investors who bought hdfc bank at 800 levels used volatility and 5% rise on many days to sell their holdings and bought back for profit on same day. This was like earning interest on the stock.

As the new age investors did not sell in panic but accumulated blue chips at 8000 levels institutions cried to sebi as they encountered loss in mutual fund inflows

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please give month end statistics

Is this (80% availability) applicable to selling even cash like instruments LiquidBEES etc?

This will be applicable even if you are selling Liquidbees. 80% will be available immediately, while 20% will be blocked for the day and will be available from the next trading day.

All decisions are not unfriendly to retail trader. Margin benefit for hedged position is very friendly to retail trader/investor.

What happens in stock options margin during last three days of monthly expiry?

This should help you:

ok. thanks

so if my otm option become itm, then the additional margin requirements will not come under peak margin requirements?

The physical delivery margins for Long ITM Options is collected by the exchange from expiry minus 4 days, this will come under peak margin reporting.

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