@ShubhS9 doing all the work lol. Keep it up.
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If client has a short fall of margin Brokers will not be able to allow you to take such positions even if you wish to, since the penalty from such shortfall cannot be charged to you the client, but has to be borne by the brokerage firm ryt
If you sell 100 rs worth from holdings, you will see only 80 rs as your balance.
What is the confusion? he explained it clearly as I can see.
You do not have to pay any additional margins, when you sell your holdings, this 20% will be blocked from the sale value itself, while 80% funds will be available immediately, remaining 20% which are blocked will be available from the next day.
Suppose I have 1L in my account.
As per margin calculator, SBIN has 6x leverage in MIS. So assuming SBIN is at 250, I could have earlier bought 2400 shares for Intraday trading (MIS). Under the new regime will I be penalized?
There will not be penalty but your purchasing power will reduce From September 2021, when maximum intraday leverage provided will be 5x, with 1 lakhs capital you will be able to buy only 2000 shares of SBI assuming price is at 250.
So am I right in assuming that Zerodha will never let me be penalized except on 2 conditions (mentioned in your original post) where the system will put up an alert?
We will alert you as mentioned in the post, but you too should make sure you have adequate funds available in your account to make sure there is shortfall and peak margin penalty.
What in case I have NRML sell position , but my margin is in negative due to margin increase before 1 day of expiry.
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should I be closing my position as soon as market opens as my margin is negative or as it was negative it would be considered as peak margin exceeded and panalty has to be paid.
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or it’s fine till ur RMS system/ myself close the position for that day as it not new position and it is NRML order only
Hi Nitin
SEBI has been very severe on retail investors. We are marginal investors and we don’t default. Not sure what was the need for such rules.
I have some questions
1 will SEBI allow intraday trading on ASM stocks? I never understood ASM rule and there is no alert on that?
2 If I have holdings worth 1lac. I sell those and buy later in the day and deposit 20 cash assuming no cash during the start of the day in my account?
3 what is Peak margin? If I sell holdings of 1 lac. Buy some stocks of Tata steel worth 4lac (80k after selling holdings X 5 times intraday margins). I square then off and make another position of 4lac. I keep doing this 10 times. At the end of the day I don’t buy back stocks sold.
Is that fine? Or is that with 80k I can only trade up to 5 times i.e. 4 Lacs and I can’t take new position even if I square off an intra day position. Please advise.
See I am purchasing a lot(3000)of SBIN DEC 240CE option for Rs 10 by paying a total premium of Rs30000.
A, Should I need additional margin for executing the above order.
B, I purchase this option on Dec 1 and hold till expiry date and square off on the exit Date should I have margin.
If I hold the shares and pledge those , Would that amount be considered in these peak margin requirements ?
Till now, we needed to maintain 40% of proceeds from selling CNCs on T+1 day and this was checked at the end of the day. Now do we need to maintain this 40% throughout the day OR that condition of “only 80% credit available from selling CNCs for the same day” will totally replace the previous 40% rule ?
If your margin was negative overnight, then this will be considered as margin shortfall by the exchange like they normally do.
Clearing Corporation will take 4 snapshots of client positions at random times during the day and see if there was sufficient margin available with the broker at that time. So, this can be anytime and if there is shortfall there will be peak margin penalty.
Rather than holding your position through negative balance, it is better to add funds or square-off.
For taking Long Option position you do not need margins, you only pay the full premium upfront.
Even when you want to exit your position, there is no need of additional margins.
As you want to hold your position until expiry, exchange blocks Physical Delivery margins from expiry minus 4 days, at this time you will need margins to hold your position. You can learn more on this here.
Yes, you can use the margin received from pledged shares as margin just like you currently do, no changes.
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Why traders have to pay the panalty? It should be on broker who is providing leverage right? If broker restricts on how he provides leverage , everyone should be good right?
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what is the panalty amount?
this rules for F&O this rules is also for equity
this rules is also for equity