As you trade using CNC, only change for you will be when you sell shares from your holdings 20% of the sale value will be blocked and you can use only 80% on same day for trading.
if you find how to trade in US market from India please let me know I am also planning to shift from this tricky market.
For example,
i sell 100 shares of ABC Company,
is it possible to buy ABC Company or another company shares in same day with 80%?
Yes, this is possible.
From Sept 2021 — penalty if margin blocked less than 100% of the minimum margin required.?
what this means?
please explain in simple language
End of the futures trading for many ??
What’s Next, Options too ??
From September 2021, brokers can provide only 5x intraday leverage in Equity segment, not more than that.
Also, in F&O brokers cannot provide any leverage and will have to compulsory collect full SPAN + Exposure margin.
this means if we short 100 shares we cannot square off those 100 shares even if in profit ???
we need to add 20% extra cash ?
why is SEBI complicating traders life like this ?
You don’t need extra margins to square-off your position.
Only God knows!!!what’s going on!!!
@mmaheshlic, currently brokers offer very high leverage like 10x, 20x etc. to stop this SEBI has decided mandate brokers to collect minimum margins and cap the leverage offered.
From September 2021, brokers will have to block minimum 20% of the trade value, which means maximum leverage which can be provided cannot exceed 5x in Equity segment.
Similarly for F&O, brokers used to collect minimal upfront margins to provide leverage as F&O is already a leveraged product, providing extra leverage is risky. Hence from September 2021, brokers will not be able to provide any leverage in F&O and will have to compulsory collect full SPAN + Exposure margin.
IIFL is blocking the margin for intraday square off as IIFL knows it very well that nobody will do intraday trading through them as they charge high brokerage from their client and they have very less active clients thats why in the fear of losing their brokerage business they have launched 5paisa
@ShubhS9 @siva What the means 10x,20x?
what the difference from 01.12.2020 & 01/09/2021?
please explain
@ShubhS9 @Shivam_Kumar2 @siva 20% margin blocked amount showing or not showing in zerodha portal/app?
zerodha alert to trader or not?
This is the leverage, say at 10x leverage, if you have only 10,000 in your account you can purchase shares worth 100,000.
From December 1st till September 1st, these leverage offered will be reduced in phased manner:
From December - February: Max leverage 20x for stocks and 4x for F&O.
From March - May: Max leverage of 10x for stocks and 2x for F&O.
From June - August: Max leverage of 7x times for stocks and 1.33x for F&O.
From September 2021: Max leverage of 5x for stocks and no leverage in F&O.
This 20% will show in your account balance the next day.
How can do this? 10,000 in your account you can purchase shares worth 100,000.?
i buy 10000/- only not taken 1 10001/- if funds not available,
how is it possible?
If I do BTST on Reliance for INR 3 L, I will be able to use 2.4 L i.e. 80% of the selling credit to buy other stocks , or F&O.
Suppose, If I buyback Reliance , for 2.4 L, the same day for BTST next day also.
And if I do an Intraday trade on Reliance , the same day, will I be informed "Margin Required " on the Order Form, as per the new rules from Dec. 1, 2020 ?