Yes. What you said is correct and zerodha need to enforce that to save clients capital. But because they haven’t yet enforced it, I paid 2.15 Lakh rupees as penalty. And this ended my 6 years of trading journey with zerodha and can’t keep my capital with them anymore. I see no other broker is charging this kind of heavy penalties, not sure though what they’re doing.
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Atleast at eod nse should release what time nse taken screenshot for penalty and how much penalty for each trader wise.
It requires RMS change, major upgrade it will be, as we use TR as oms vendor they need to have this upgrade, many other brokers uses them as vendor. Every exit order also has to pass through that RMS rule which can add little latency. Need to think of other pain points.
I believe it is not a fact as nse is the one who calculates. It may so happen that some broker are enforcing to square off short position 1st but no way penalty charged can be different. Would love to get counter facts.
There is no proof as such but as I compare my zerodha account ledger with other renowned broker ledgers of my own account or other fellow traders, there are no such penalty charges with other brokers. Even I do similar kind of trades especially option strategies with my other broker account. Not sure what’s happening though. But definitely any broker for that matter should take responsibility to build some system to take care of these scenarios, otherwise just like me there is high chance for every client who trade in derivatives to lose all his capital in penalties itself.
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You were clearly informed about what you did wrong. Yet you aren’t ready to accept it and would rather make up conspiracy theories. Keep doing this and pay similar penalties with other brokers too. After that blame nse, sebi and the universe.
Or maybe just stop being penny wise and pound foolish. Exit short options first and then exit your long option.
One would get email when account goes negative, you can take that as the shortfall time, but at what time NSE would have taken screenshot that is unknown as it is random. Let me know if you need more details to pursue this ahead. Also as mentioned it has nothing to do with broker, I understand 2 lakhs is a lot of money though.
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Yes I am looking for some authorized statement that I was charged so and so amount and stating reason. As the excel given to me by support team has no authorization as such and just has some numbers which might not be useful officially.
Today we can short one bank nifty call/put option with margin of RS 80K. How will this change from SEP?
What would be the approximate margin required for this?
it would be double. 160K
crazy! so right now i am happy if i get to cover 100 points in a day since that translates to 3% gain and stop loss at around 25-30 points. the % gain/loss on total capital is now immediately getting halved. Bad, very very bad move 
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Case 1 : suppose i have 10,000 in my account. And i have purchased index options in MIS for 10,000 rs. If i get any loss in M2M before square-off , will that be treated as margin shortfall and peak margin will be imposed …
Case 2 : As it is mentioned on your website 80% of the shares can be bought on the same day after selling the holding. 1) suppose i am selling reliance shares from holdings can i buy tatamotors o i have to buy reliance shares only. 2) that 80% from sold holdings , can i trade that amount in intraday for any company except the sold company. 3) can i use that amount in fno and options intrday trading.
MTM loss don’t come under peak margin.
The proceeds received can be used for buying or trading any stock. You can also use the proceeds received for trading F&O.
Now that we are approaching phase 3. I read in the news that there was a request from ANMI to SEBI last week to rethink the margin system.
SEBI’s peak margin rule for stock markets is unfair: ANMI - The Hindu BusinessLine
Given you experience and knowledge about the regulator what is you personal opinion on the probability of either a status quo or use of Intraday SPAN/VAR for calculation of Intraday margin ?
Hello @nithin, Is there any response from SEBI or Finance Ministry regarding this request from ANMI as of now?
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Nothing yet.
Why does the required margin change before the market begins? What change in values happen even before the markets begin from the previous day?
Can anyone know the logic behind this?
My observations on weekly options make me think that margins are lower on Friday and keep increasing till Thursday .
Don’t know why exchanges hide margin calculation method & corresponding files related to this.
@siva-reddy , Any specific answers on this, as I have observed a lot of complaints on margin calculations.
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zerodha is blocking 52% margin for hedged position IC and not 77% is this permanent? @siva-reddy @ShubhS9
They put latest span files on their websites, one can check them on pc margin software it they have access to, check this. How to arrive at particular margin is out of question for retailers to bother about. I mean to put it simply they consider price movement of underlying and volatility and calculates 16 scenarios to find worst possible loss with 99% probability for 1 day with some combination of price and volatility. No need to question the calculation bit.
For more on how span is derived one can check this.
We can notice more changes when spreads are involved, as a trader we should maintain minimum 10% in cash as buffer to cover for changes in margins and to cover losses.
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