Peak margin requirements from Dec 1st 2020 & its effects

[ShubhS9]

@Jay_Surana

Following peak margin requirements from december 1st, what happens in case of BTST?

You can continue to do BTST, no changes.

@Jay_Surana

upfront margin of 20% is to be maintained at zerodha while buying today and selling tomorrow?

You already pay 100% of the value upfront when you buy stock for delivery, so you don’t have to maintain anything extra, also to sell the same next day you don’t have to maintain any additional margin.

For better understanding would request you to read this post.

Changes in margin requirements from 1st Sep, 2020

Under the new margin requirements, a minimum of 20% is required to buy a stock and to sell a stock. The margin for selling a stock is exempt if the broker can make an early payin to the exchange - which is debit shares from client demat and give to exchange/clearing corp on same day. In case of BTST, the shares are still not credited to your demat, which means we can’t make an early payin. Which means we need to collect 20% for that sell transaction. When buying a stock we would have collected…