Peak margin requirements from Dec 1st 2020 & its effects

I am a F&O positional trader. Only stocks, not indices. My holding period is between 1-4 weeks.
Will my margins/leverage be impacted by the new SEBI regulations?

Thanks in advance for your clarification.

For overnight positions, margin requirements will remain the same and if you are hedging your position you will continue to get margin benefits for that, same as before, no changes.

@ShubhS9 if i have negative margin in my overnight fno positions will there be any issue with peak margins.Also whats the rate peak margin penalty , an example would be very good

Thank you for your response.

If your overnight position is short on margin, exchange already levies margin shortfall penalty on that. The peak margin penalty is the same as margin shortfall penalty charged by the exchange. You can check this post for more information.

if mis and co have same leverage then why CO requires 10k less for selling 1 bnf lot

Because it comes with compulsory stop loss, any how both will have same margins from march 2021.

Hi @ShubhS9. I had opening balance of 10 K and now I sold 1000 nos of Equitas shares @ 70.50. Now i see a free Cash of Rs. 66.4K. So as per new rules, rest amount of 14.1 K will show tomorrow or will get post T+2. Could u pls clarify. Thanks in advance

You will be able to see this in your balance the next day.

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Demonslayer first you hide your name like vijay mallaya. you dont have guts to display your real name first. Second you are equating a retail trader who has little money with vijay mallya or laxmi villas bank. Those mallaya and laxmi vilas bank swindle desh ka money. I am small trader who trade who dont have even 10 lakhs. Your mentality is so cheap that you dont understand what we are saying. Never be so smart and write something in which your knowledge is zero. people need margin to trade we trade only in 1 lot not in 100 lots to run away.

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Same here…we will be dead due to all this rule. We are always kick down. It is like poor people should be always poor. We are not given any way to grow.

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I see that you lack basic understanding, as for the mentality I have quoted the text against which I had put forward my views, if you can comprehend.

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What is the current MIS margin offered by Zerodha for Selling Index Options @ShubhS9 .

The latest bulletin shows 3.7X but as per the margin required in Basket order it comes to 2.5X (62K)


What is the correct leverage for MIS margin?

did zerodha increase CO order margin midway through trading session? @siva

Yeah, initially it was below requirement.

@DemonSlayer
With no offence but your example was not at all justified. You cannot compare millions of small traders who trade with less than 100K or even 10K for some extra income.
What SEBI did here is if there is an increase in road accidents then instead of proper law enforcement they just dictated all the motor vehicle producing companies to give only 1st gear along with reverse. So when there will be no 2nd 3rd 4th n 5th gears so no more speeding and very less accidents.

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SEBI has not removed the gears at all they have just put some sense into how they are implemented, Let me explain what SEBI has done…

Earlier the Gears were in place but there was no limit to the maximum speed which was sky high, for some miscreants used the loopholes to provide unlimited speed leading to inevitable deaths because sky high speeds can be only be attained with loosing most of the safety norms.

Now what SEBI has done is they have put some checks on how many gears can be used, with the amount of guts you have. More the guts more the gears but with the safety norms intact for everybody.

Rules are for everybody and it’s still an equal/level playing field. So suck it up and stop whining, if in a few years time you have not been able to make money like you started with 10k and went to 100-300k then you should not be in this trading business, you are not good, accept it and move on to Mutual funds and investing. Trading in the only business where you are even lucky to even get 4x leverage.

How brokers like Aliceblue still offering the same margin in MCX as before?

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I believe they are giving only post 5pm because clearing corporations currently aren’t taking the peak margin snapshot after that. They are clearly violating SEBI regulations. I am sure they will have to stop it soon.

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There agent is saying that they are offering old margin in morning and evening sessions. Don’t know how they are saying this. Will get clear picture in 1-2 week. I think