I was reading the FAQ on using Pledged Margin and came across this - 50 % Cash mandate by exchange for overnight positions - Is this an OLD update? I thought exchange don’t mandate 50% cash for taking positions overnight and thus allow using 100% pledged margin without leading to debit balance and interest charge.
I know brokers like HDFC securities and 5 Paisa allows this and they don’t charge any interest if I take overnight position with 100% pledged margin. Please clarify if Zerodha has a different rule here.
I also find that HDFC securities allow even Option buy with pledged margin. Is Zerodha likely to have a revisit on this restriction?
If 50% cash component is not available, looks like Zerodha still allows to take position. What is the implication to account holder? An interest will be charged? please share the details? Is there any penalty? As I know at client level SEBI/Exchange don’t charge any interest for using 100% collateral margin
What is the "Particulars’’ description for the interest charged on -ive cash balance in the ledger statement?
Like for margin penalty, the ledger statement has following as the Particular -
"NSE F&O short-margin penalty for date 2021-XX-XX"
I also feel, Zerodha should have a list of all possible Particulars documented somewhere in ‘Support’ for easy reference of traders so that they can transparently understand all debit/credit transactions.
I checked the link. Neither short margin penalty nor delayed payment charges are described in this link. May be it’s time for Zerodha to update the support page with all these and other charges that are levied. This will bring in more transparency.