Thanks a lot sir
@ShubhS9 I was going through twitter and found that Zerodha does not allow to buy OTM options BEFORE selling due to open interest limits though I have not tried it.
When I click on buy, it shows only one nudge - Options bought using MIS for intraday can’t be held overnight since position conversion from MIS to NRML is not allowed. This is due to Open interest (OI) limits prescribed by SEBI & also as a risk management check.
Will this nudge prevent me from buying the option ? I am not going to buy naked option but the OTM option will be part of my basket order and before sell order in basket
Sorry for the long question
If the option you’re trying to buy is outside the allowed range, the order will be rejected.
If you have a short option position, you can buy options at any strike price to hedge your position, upto the extent of quantity shorted.
You’ll have to keep sell order first in the basket sequence.
Pledge value is revised regularly so whenever it dips, it also reduces the margin of your trading account. There is no limit on the timings of the pledged shares.
BSE stock is showing as 100% haircut what is the reason
This happened because BSE was recently added to Long-Term ASM Framework Stage - I (Refer to this circular - NSE/SURV/48987). In the circular, the following is mentioned -
Members are hereby requested to note that the securities as per attached Annexure I-A have satisfied the criteria for inclusion under Long Term Additional Surveillance Measure. The applicable surveillance actions shall be as per provisions of the Long-Term Additional Surveillance Measure (Long Term - ASM) which are as under:
- Applicable rate of margin shall be 100% w.e.f. July 26, 2021 on all open positions as on July 23, 2021 and new positions created from July 26, 2021.
As explained in this support page , the collateral margin for stocks in the ASM list is reduced to zero -
Note: In cases where a stock you have pledged is moved under ASM, you will no longer be provided collateral margins for that stock, because, as per ASM 100% margin should be levied. The collateral value (shown on the trading terminals) will reduce by the value of collateral received against that stock.
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Why SGBJUL29IV-GB is not available to pledge?
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This is not yet approved for pledging by the Clearing Corporation, you’ll be able to pledge once approved. We’ll update it in this sheet once it is available for pledging.
@ShubhS9
AXIS GROWTH OPPORTUNITIES FUND - REGULAR PLAN GROWTH
While Regular Plan is available for pledge why direct plan is not available for Pledge ?
The Clearing Corporation has currently only approved Regular Plan for pledging. If an when Direct Plan is approved, you will be able to pledge. Explained here.
Hi sir…
i took bull call spread position with collateral margin. Buy leg with cash and sell leg with margin. After few days if i have to shift my buy leg to another strike i would have to square off the existing buy leg and do so. During that short while i would be having a naked short call. I would be having adequate collateral margin for naked short too and would be buying buy leg within minutes. In this case as i am having naked short for a minute or two just with collateral margin and no cash or cash equivalents would i be charged interest for the day? Or is calculated on eod basis?
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No. You can use 100% collateral margin on intraday basis. The 50:50 Cash - Collateral requirement is only for overnight.
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The naked short for a short while i was referring to was nrml. Even then it does not attract interest ?
With pledged margin, you can’t buy options. Only sell.
Can I use collaterl margin to buy securities in cash market for overnight? Will I be charged interest for this?
Just a quick question. Can I pledge Liquidbees or other stocks and trade intraday in cash markets using that collateral?
Or, I can only trade F&O using that collateral? @ShubhS9 @siva
No. The collateral margin can only be used for intraday equity, trading futures and shorting options. For equity delivery and buying options, you will need cash in your account.
Yes, you can use the collateral margin for trading intraday equity (MIS, CO).
Hi Shubh,
I have seen mixed answers for this: Is 50:50 requirement for Intraday as well or if i get 80K after haircut, that can be used fully without any interest/shortfall?
thanks
For intraday trades you can use full collateral margin, there won’t be interest charged on it. The 50:50 requirement as explained above is for overnight positions.
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