Right.
We will warn you on the order form if there can potentially be peak margin penalty.
Though, it is advised not to use proceeds received from selling your holdings to do intraday trades if you want to buy back the shares sold later in the day. No issues if you have funds in your account other than the sale proceeds received.
you are confusing us.
if i sell and buy back its intraday.
inbetween if i buy a nifty call and make profit, i cannot square off my stock position ?
pls give clarity
You can square-off your position. However, if you have sold your holdings, 20% is blocked so you can buy back only 80% of the shares back, if you want to buy back all shares you have sold you will need extra funds.
What is the reason behind this decision by SEBI?..If at all the main intention was to reduce the risks for trades then stopping the Intraday traders and forcing them to become Normal traders with overnight exposure then it will become riskier.
If a trader can’t control risks while doing Intraday when volatility is visible and decision can be taken, then in overnight situation when things are beyond control risks are going to multiply.
As a retail trader the future road seems to be extremely tough…
this means as per 2b)
If I am having Nifty future overnight buy position and I sold it tomorrow, so I will not be able to sell Nifty Future again??
I use Exit and Reverse strategy. Do I need double margins to reverse my intraday or overnight positions??
if i have Rs 50k available in my account and i short sell maximum possible quantities of say Reliance in cash segment, then will i be allowed to buy back all the quantities before market close if i am doing intraday trading?
or would i require to have more funds in my account to buy back all the quantities?
The point 2. b) refers to Options, not Futures.
If you have Futures position and square it off, you can immediately use the margin freed to take another position.
Will we get a nudge/warning if we try to buy more than 80% of the demat holding sale credit on the same day?
Please sir clarify
I have 1 lac in my account, I did short 1 lot of banknifty , intraday and after half an hour I square off my position Will amount blocked be available for trade on same day
??
Yes, once you square-off your position, margin freed will be available for taking other trades.
You do not need additional margins to square-off your Intraday positions.
ok…does this apply to both stocks and futures for intraday trading?
Yes, for both stocks as well as F&O.
so if i am correct, as of today whatever rules we are following wrt to stock and futures in intraday trading nothing will change except for the gradual reduction on leverage that brokerages offer?
Right, but along with this just another thing to keep in mind is, with peak margin reporting you will have to maintain adequate margins in your account all the time to make sure there is no shortfall and peak margin penalty.
So from Dec to Feb if there is a short fall of less than 25% of 20%means there will be penalty, if my trade value is 1lac 20k will be min margin 25% of 20k that is 5k margin should be our required margin for the day is this correct.
And if there is a short fall say I have only 4k my order will get rejected ryt. In the order window will the required margin be updated as per new norms from tomo.
The way you guys from zerodha explain this complex margin system for our retail traders… My God
No one in India can explain this new mechanism better than you guys…
A big salute to all those who working for zerodha… Thank you so much for answering each and every question again & again for us on trading Q&A platform… Thank you🙂
ok…but if at any time during the day there is less margin to place the trade then i believe zerodha’s RMS will not allow me to place an order…also, if i strictly use stop loss i will never fall short of any margin…
Right, if you are trading worth 1 lakhs, then minimum margin requirement from Dec to Feb 2021 will be 5k.
Yes, order window will display you margins required as per your trade value.
Right, if you are trying to place order worth more than funds in your account, your order is rejected.