Even after August 2021, you will need only SPAN + Exposure margin, not full contract value.
Hi, pls make it clear, As mentioned 20% of the cash will be blocked from the sold delivery.
So it is including the profit or excluding the profit madeā¦
For example my profit is 10% then how much percentage of cash will be blocked?
30% or 20% ?
20% of the sale proceeds will be blocked, the sale proceeds include profits as well.
Eg, you took position worth 1 lakhs on Monday and on Tuesday you sell it for 110,000 making 10% profit, the 20% will be blocked from 110,000.
Suppose I have 1 lac capital and I have bought bank nifty option at a price 400 rs for 250 quantity
at 9:15 am and I have squared off my position at 9:20 am on the same day at a price of 420 rs for 250 quantity so my total profit is 5000. After squaring off at 9:20 am on the same day my 1 lac will be released at that moment and with that same capital of 1 lacs can I take positions in bank nifty options or any other segments on the same day
Right, the 1 lakhs you can use to trade immediately, the profits you have made can only be used from the next day.
The comments itself solves most of my doubt,thanks to all the solver.
What I understood.
1.Basically short selling of stocks is back but can buy till 80% of the sold value.
(sold long holding of reliance 2000 10 stocks at 9.20 and bought 8 stocks at 3.15) have to left 2 stocks that gonna come next day.
2.Intraday Margin are axed for more control movement in the market.
3.Donāt mix stocks and future trade in intraday if you donāt have money.
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Apologies in advance if this is a stupid question, but this is going into too much jargon for me. Can we have an basic math done on this? My query is simple.
I have 1 lakh rupees in my account which I use for Intraday Trading.
So based on the final phase where we require complete margin, could you explain with the below example -
I trade 4 intraday stocks with VAR+ELM 25%. Each stock price is 100 rs and buy qty 1000. So can i execute all 4 trades without having to suffer a penalty for shortfall and keep them open position for the whole day and close based on my SL or Target Price?
@nithin @siva @ShubhS9
Do I even have permission to take an intra day position on my holding from now on? If so, should this also have an additional 20% margin block?
Thanks for the reply.
Also pls let me know blocked amount means?
The 20% blocked amount will be shown in my balance but cannot use it? Or it will be not shown also.
Better blocked amount is not shown in the balance for the day. To avoid trouble while buying other stocks.
The blocked amount will not be shown in your balance on same day, only the next day.
For Intraday you can sell stock from your holdings, but if the sale proceeds received is the only balance you have in your account, then you will be able to buy back only 80% of the shares, if you have additional balance you can purchase all the shares you sold.
Should be okay, only thing to monitor is max loss in each scrip allowed by your broker before squaring off.
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Does SEBI intend to phase out the trading system completely by August 2021?
Anybody just give some validation to my understanding, was it right?
Right, but when you sell 10 and buy back only 8, 2 will be sold and proceeds for the same will be available to use from next day. If you want to buy back all 10, you will need extra funds in your account.
In F&O yes, there will be no leverage but in Equity you will get maximum 5x.
Only if you plan to purchase back your sold holdings, if you donāt then no issues. Also, no issues if you have adequate funds.
If I sell reliance today fut Dec @1940 and I have hedged with 2500 ce with 2 rs. And I cover 2marw will the margins get blocked and I canāt use for the day right
The margins blocked will be released when you square-off your position and can be used immediately to trade.
However, the premium you will receive from squaring-off your Long Option position can only be used to buy Options in same segment on same day, for all other trades you can use the proceeds received from the next day.
The penalty is mentioned lot of places but its not yet made clear what is a penalty? How will it be charged? Do you not know how you are going to charge penalty thats why its not mentioned?