You have a point but there’s no alternative to this. It is better to be cautious from now on and make it a good habit to first exit the position with margin and then exit the hedge.
this needs to be raised to SEBI, while not to give leverage above a certain extend or number is okay.
SEBI should and can verify whether its member broker has the right technology to implement their mandate/rule. There needs to be certifications, which from my past interaction with SEC team and trading equity flows at world’s top bulge bracket bank , I have seen these rules being verified and certified. Failure in not doing so will have very high penalty and it is imposed on the business providers like investment banks /brokers/ Asset managers, not to clients.
Current rule from what i understand is extremely ridiculous and seems is not well thought. If I exit from my spread (SEBI wants us to first go for a spread in first place) position, by mistake exit my long position first and short later, penalties will kill us.
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Dear @nithin , how NEW PEAK MARGIN impact ‘open f&o positions’ of last two days of expiry(i.e Wednesday and Thursday), as you know the same is shoots up in last two days(in case of stocks).
Till now, we can provide the same even in evening of Wednesday.
After this(pick margin rule), whether we have to provide the same, before opening of market on Wednesday.
Thanks
Dear @ShubhS9 , @nithin , @VenuMadhav ,
Thanks for your reply,
Actually my question is regarding stock f&o AND RELATED WITH LAST TWO DAYS OF EXPIRY MONTH THAT IS WEDNESDAY AND THURSDAY, whereas normally margin just doubled.
Thanks
Dear @ShubhS9 , @nithin , @VenuMadhav
But your Zerodha trading platform provide the increased margin requirement on WEDNESDAY morning after opening of market.
How one can know, how much additional margin required ?, SO ONE CAN TRANSFERRED REQUIRED CASH FROM THERE BANK ACCOUNT TO TRADING ACCOUNT.
Thanks
On last wednesday and thursday of every month we at Zerodha ask more margin, this will not come under Peak margin. So, one can close positions on wednesday or transfer accordingly to not have positions closed from our end or face interest penalty but those additional won’t come under peak margin.
Suppose I place order for share X
buy 100 shares at 100 and sell 100 shares at 105.
If order does not fulfilled. Its okay if I cancel any order first. Or I have to cancel any particular order first ?
Or this hedge position rule does not apply to intraday equity.
One should do things to understand, you can try doing it by placing some limit orders with 1 quantity, any how limit orders, so won’t execute.
Here is my question.
I am an stock option buyer.
I bought a lot(550 shares) of Bata 1540 @ 26 and paid Rs.14,300 on 21/Dec/2020. ON the close of trading day on 23/Dec/2020 my call was ITM and I didn’t square off my position. Now I have received a mail to pay margin as my call is ITM. Why do i need to pay extra margin as I have already paid premium to buy a lot ? And from Sep 2021 do option buyers need to worry about this new margin rule ?
As ITM Options carry risk of physical settlement, Exchange blocks Physical Delivery margin in phased manner for ITM Long Options from expiry minus 4 days, you can learn more on this here.
You will not need margins to buy Options, as explained above, as ITM Options carry risk of physical settlement and we are about to enter expiry week so exchange blocks physical delivery margin in phased manner from expiry minus 4 days for Long ITM Options.
What are the implications if were to short sell from my holdings and buy back the same day?
You can buyback the shares you have sold, no issues. Though if there are no extra funds in your account then you will be able to buyback only 80% of the shares sold as you receive only 80% credit.
Also, you can read this post for more information:
After T+5 days.
Hello,
Once we move to 100% var elm with min 5x in stocks, what is Zerodha’s plan ? Will you offer atleast 5x in MIS for most liquid stocks as you do now or will it reduce even further ?
Right now i see that zerodha requires 50% var elm for MIS and so there are a handful of stocks with less than 5x leverage. That is fine, but once we go 50-75 and then 100%, what will zerodha do?
I trade intraday and would prefer to get atleast 5x in most stocks as it is today.
Unless stock is super volatile, you will continue to get at least 5x in most stocks, like today.
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@nithin @ShubhS9 @siva
After SEBI margin Rules Is fully implemented i.e September 2021 Do you think there Will be increase volume in equity options trading
We can also just guess as of now, our guess is as good as flipping a coin.
Why is SEBI so hell bent on making markets miserable for retail investors and small players. I really don’t like the new margin rule and the rule where only 80% money is recieved on selling holdings, also they scrapped out the crude oil mini earlier which was the only one accessible easily for many small and retail investors.
Can’t we do something regarding this and is zerodha currently doing anything to urge the authorities to change this?
just curious to know
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Zerodha saying that they are opposing this move and requesting SEBI to allow the leverage from broker funds
FYI:- One company named Wisdom Capital filed a petition against this move in Delhi high court.
Court refused to give stay on this but asked SEBI and Government to give explanation on this
and next hear on March 2 2021
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