Hello @ShubhS9 @siva-reddy ,
I have a question regarding option buying!
When we buy options the options premium is debited from our account, and released and credited to our account when we sell the bought option?
The profit from option buying is credited to our account on the next day. Is that correct?
Please let me know!
Yes to Intraday profit, if you sell carry forward option then everything will be credited today but that money can be used only to buy options on T day, from T+1 can be used for everything.
ok, but when we buy options, then the buying amount is debited from our ledger account until we sell the bought option, is that correct?
Yes, if you sell then sell value is added back.
NRIs when I checked with the broker multiple times, the broker confirmed that NRIs will not get any amount immediately. After T+2 only, NRI must wait, the margin will be credited.
Letâs say I sold shares from my holding worth Rs. 4 lac and 1 lac will be blocked until next day I understand and 3 lac can be used for new trades but when we sell from demat - do we need to have any cash balance or margin in our account âŚif I have zero balance and sell from holding (and not square off that sell position i.e. intraday ) will there be any penalty? @siva-reddy
No, there wonât be any penalty. Also, you donât need any additional margins to sell shares from your holdings.
Thanks âŚso I square off my selling position (if I buyback after selling from holding so essential do intraday trade ) than I might be subject to penalty because only 80% of value is available on T day for the remaining 20% I will be subjected to short margin penalty correct ?
Hi @siva-reddy @ShubhS9 ,
Currently for multileg Option selling the margins are calculated as 20% of SPAN + 100% of exposure.
Post 1st March now that the margin requirement would double should be expect the formulae to change to 40% of SPAN + 100% of exposure or would there be a different calculation.
If we could get an estimate of the formulae it would help us to better prepare us for fund requirement from 1st March.
Any details on this would be highly appreciated.
Suppose I have 6 L in my account.
I place a Stock CNC overnight order of INR 2.5 L
I do a BTST on this deal.
I do intraday trades on the same stock.
Then I buyback the stock again, for overnight position next day for 2.5 L through CNC order
Then I repeat the same cycle for many other days too.
Will there be any problem in that case ?
Kindly inform, how high can be the deal size (which is 2.5 L currently) for BTST on this stock, to avoid any penalty ?
Will update on that by this friday, we make sure that total combination will come to 50% of nrml.
@siva-reddy
Hi,
I know you said Friday, but just wanted to check if the working or calculation is ready.
Sorry for troubling you, but just want to know a little in advance so that I can plan in advance and be ready for Monday as Saturday is a bank holiday.
Thanks
Just saw the new notification from Zerodha on the Intraday margin
Intraday leverages to reduce from Monday, March 1st, 2021 due to new peak margin regulations.
Starting Monday, March 1st, intraday leverages are set to reduce under the new peak margin regulations. The minimum margin for equity will be 10% of trade value and for F&O 50% of SPAN+Exposure margin. This reduction in intraday leverage will affect only those who use product types MIS and CO for additional margin.
Just wanted to confirm for F&O is it (50% of SPAN)+Exposure margin or 50% of (SPAN + Exposure) ?
So, it is 50% of (span+exposure).
This is confusing me. Letâs say I sell my holdings and plan to buy them back but Iâve already used my margins for letâs say Nifty futures (mis). But because I already have used my margins, I no longer have margins to buy my holdings back. So, how can I buy my holdings back with no margins?
You can buy back the shares youâve sold, but since youâve used the funds received to trade intraday and if you donât have funds other than those received from selling shares, this can potentially lead to peak margin penalty.
Would request you to read this post, it explains everything in detail:
So here we are talking about short selling? that when we short sell shares and use the funds elsewhere, we can still buy back those shares, but because we donât have required margins available, we will attract peak margin penalty?
Right. If youâve funds other than those received from selling your holdings, there wonât be any issues even if you buy back the shares sold.
Got it. Thanks a lot.