RE: Peak margin requirements from Dec 1st 2020 & its effects

[DogsAndMe]

Hi Nithin,

Currently after 75% Peak Margin Rule the leverage on Equity Cash is 6X. So by Maximum 5X from Sept. 2021 does it mean the leverage on Nifty50 Equity Cash can be 2X, 2.5X, 3X, 4X too or will it be fixed at 5X ?
Please answer.

[nithin]

@DogsAndMe

Currently after 75% Peak Margin Rule the leverage on Equity Cash is 6X. So by Maximum 5X from Sept. 2021 does it mean the leverage on Nifty50 Equity Cash can be 2X, 2.5X, 3X, 4X too or will it be fixed at 5X ?
Please answer.

It will be fixed at 5x unless of course a stock is extremely volatile. At which point our RMS might decide to reduce leverage until volatility subsides.