Peak margin requirements from Dec 1st 2020 & its effects

Kindly check now, changed in the front end too.

Hi, I understand the penalty for margin shortfall is related to overall margin (CASH+COLLATERAL). If my cash balance goes negative intraday and if the overall margin is positive, I will not be charged any penalty. Correct me If I am wrong

@Ragavendran_M Pl clarify

Right.

pls clarify is there anythn to worry fr equity intraday traders abt peak margin penalty or eod m. penalty ?

Cn there be any scenario whr i ll have to pay a peak penalty ? eg if i take 5 trades in mis cash equity, with a capital of 1L (all 5 stocks offering 5x leverage) n squaring off all at 3.20 thn will there be a chance of any peak penalty? @siva @ShubhS9

No, this case is fine.

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Yes, When market will fall, Retailers would lose more money, then they will increase margin so that retailers can lose even more. Just wait and watch :slight_smile:

Hi @Ragavendran_M @siva,

There is a gap of close to 8% between the margin that appear in the basket order and the margin that gets blocked. Is there a reason for the same. Is this because Nithin mentioned that MIS would be 105% of margin required and the basket order does not account for this additional 5%?

Let me know if you need more details and I can share the position details as well

Should not happen, can you post a screenshot?

Hi,
You should have placed pending orders for your positions. For this margin will be increased considering your hedge has been broken. You can cancel those open orders and check the margin once.

How much you received selling options? because final margin is margin blocked - option premium received, as final margin will show your own funds blocked excluding option premium you receive for selling options. Also I recommend you to take of that screenshot as that is big in absolute number, also giving out your position info to all.

@Ragavendran_M

Sent you both the details in private message. looking only at Final margin

Upstox now takes brokerage on delivery trades as well. Is it because of margin rules? Will Zerodha or other discount brokers follow the same?

@nithin @siva

No plans with us as of now.

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After taking away leverage with peak margin norms, one more rule being framed by SEBI to restrict retail trader participation in F&O market.

SEBI ‘lens on retail participation in the F&O segment’

Please share views on below thread.

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I don’t think there is any rule being formed, at least as of now. But this potentially could happen in the future, something the industry has to be prepared for. Some minimum entry barriers in terms of income, net worth, not allowed for those over 75 years, qualifying test to figure if the person understands the risks, etc to be able to trade derivatives. Whenever it happens, I hope it the bar won’t be too high.

Any one in this country can start a business without any degree or net worth certificate. Then why treat f&o any differently which is infact treated as a business. A school dropout Dhirubhai Ambani created India’s largest corporation. College drop outs have went on to create unicorns. I think bringing heavy handed legal bans is going back to licence raj that thwarts innovation and limits the ordinary guys chance to make it big in life materially.

If at all anything SEBI should pull down the HFTs running on the exchange which allows few rich guys to get information before the retail and profit from it.

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Nithin Bhai, This news article came out yesterday. Looks like future is not far, could be couple months away. I really hope, SEBI won’t restrict small/retailers ability to freely trade in F&O under the guise of investor protection.

Every trader goes through Loss, Breakeven and Profit stage. It’s sad that SEBI doesn’t understand this or they just don’t care.

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I hope there are multiple things which can qualify someone. A full time trader for example may not have any other income but have net worth on which he trades. A negative year is easily possible in trading once in a while - that should not put a barrier for future year,

Some minimum level of knowledge/understanding of risk is probably most important.
We already have high margins now. With low leverage, any trader will need to have decent capital anyway vs the risk taken. Only options have this potential risk of lottery style trading.

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