Quarterly settlement query

Zerodha
1

Hi Team, @siva @nithin

I have three queries regarding quarterly settlement.

  1. To avoid settlement, only overnight positions are accepted or can I do intraday trading also?

  2. If only overnight positions are to be taken, is it 80% capital to be used or 2.25 rule to be applied? I am confused a little.

  3. Is liquid bees be counted? Can I avoid settlement if I buy liquid bees and hold for 1 night every month?

Thanks
Raj

3

You will need to have an overnight position.

If you have an open position on the day of payout then 2.25 times the margins levied for an open position will be retained in your account. After this, if there are any additional funds. Those will be sent back to your bank account. Explained in detail here.

The quarterly settlement happens any day within the period specified on the withdrawal page on Console. If you have bought and sold securities before the payout date, then quarterly settlement will still happen.

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You can learn more on the quarterly settlement here.

5

Thanks @ShubhS9 but one last query.

Your 3rd statement is conflicting with your 1st one, isn’t it?

If anyway settlement happens within the period specified (even if I buy, hold for 1 day and sell before payout date), then where is the question of “overnight” that you mentioned in 1st statement?

Thanks
Raj

6

On the date of payout, if you’re holding overnight position then 2.25 times the margins applicable will be retained. While any extra amount after this will be sent back to your bank account.

If you take intraday position, then this won’t be applicable and quarterly settlement will happen.

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7

One last thing @ShubhS9

let’s say I bought liquid bees last week and today I sold after market starts around 9:30 AM.

Can I use all 100% today for trading options or here also I can use only 80% like stocks square off?

Reason for asking: Since I trade only Thursday every week, I thought of Buying liquid bees on every Friday, hold for 5 days and sell on Wed evening or Th morning based on your response. I want to use all 100% of my capital. Is this a good idea?

Also, let me know if I have to know anything else about liquid bees.

Thanks
Raj

8

When you sell shares from holdings (LiquidBees included), you will be able to use only 80% of the sale proceeds. The remaining 20% will be available from the next day onwards.

You can also buy LiquidBees and pledge them for collateral margin, which you can use for trading futures and shorting options. However, for buying options, you will need cash in your account.

You can learn more about LiquidBees here: Everything you need to know about Liquid Exchange Traded Funds (ETFs)

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