We allow everything except GSM2 and above. For illiquid we may ask TOPT but we never block them.
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Hi Siva,
In this case it does add up to have more longs than shorts when both CE and PE is included. Quite an unfortunate handicap as different strategies require different ratios of longs and shorts.
Thanks for taking the time to reply.
No Vij, I was able to hedge. But I needed more (to equalize my short PE with long PE) but had trouble when doing so.
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This is one of the irritating thing!!
Thanks @siva this is helpful to know. Is it across all expiry?
So I add all PE/CE Sell in Jul, Aug, Sep and weekly if any right? or is it per expiry?
In case you use betterKite 
now you can see how many quantity you can buy, if your quota is full then it will nicely tell you buy not possible.
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Across expiry.
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say I took long position in MIS (Intraday), towards EOD, I want to convert to NRML. Would it be possible if I have short position in NRML (same qty)?
or because it took in MIS I would not be able to convert to NRML?
Not possible to convert mis to nrml for longs in any case.
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The allowed range is extremely narrow right now, becoming a major problem in executing a desired strategy.
As a few others have already pointed out, even in a spread, taking short position first means I do not get the full margin benefit.
Making a trader take short position first also adds to the execution risk. For example when I am doing a bull put spread, what if the market goes down drastically before I can complete the long part of the trade?
I waited long enough, but now this has forced me to try with other brokerage house.
Also the first buy of long position is set to MIS by default, and I have to change it to “NRML”. I have to do this daily on the first long trade, even though I do not trade MIS. This is a minor irritant as of now, and costed me (luckily only) 4-5 trades worth of brokerage due to my lack of attention.
If only Zerodha can allow (small) traders to take at least a few (<20 lots for example) long positions without any strike restrictions!!
I have evaluated Upstox, Fyers and Finvasia.
Upstox had lot of issues. I closed the account after one month.
Fyers brokerage is similar to Zerodha and also provides refund in case you win 30 days challenge. No OI restriction to buy CE/PE of far away strikes. Option Chain is available which is much better than the Sensibull widget. Some folks had mentioned about margin not being calculated correctly in Fyers. I have not faced such issue in the last two months. You can buy and pledge direct MF. No UI or platform issues, trading with a decent capital.
Finvasia brokerage is free, but the web UI is not good. Fyers and Zerodha are much better.
Zerodha has a good ecosystem: Console, smallcase, tradingqna (my fav), coin UI is much better than Fyers Direct UI, GTT, streak, sentinel, where the other brokers need to catch up.
Decide your priority and requirement and select your broker accordingly.
I will be moving to 5paisa in 1 to 2 months.
Nothing against zerodha - Infact they are very good - but they are good only for smaller traders. Also the varsity has offered many insights
I’d love to stay on with zerodha - but there are few limitations that will not let me stay profitable.
- you will not be able to do an iron condor due to OI restrictions (The safest option strategy worldwide). Your short positions will be in NRML and the long positions will be in MIS which will square off end of day. And you will end up owing a short straddle with unlimited loss
- There is a work around for this though if you are willing to make some round trip trades ( approx 4 trips)
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I aborted my transition to orbis on the 2nd last step. The pledging of cash component MF, ETF is not available. And since i am just an options seller, there is no point in just parking the 1cr as just cash. 3% annual return would be Rs25000 monthly (why should i miss it ?)
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The desktop app is not intuitive (Pi)
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Although their brokerage is low Rs20 per order. Other brokers are willing to give Rs10 per order.
My trading style is to hit a win 90 out of 100. Trading only in BN. All monitors set up to chart only 1 index. Would prefer to be a specialist in 1 index than jack of many.
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With a 1 crore capital, one can easily create an iron condor in NRML by placing short order first and then buying further OTM strike.
If you pledge cash MF/ ETF, what is the percentage haircut you incur? If it is 8 to 10%, that doesn’t allow you to use your full capital in option trades.
Assuming your rate of return is 20% per annum, you will only make 18% from your trading and with 3 to 4% returns on ETF, you will end up with just 21 to 22%.
For one or two % per annum, you end up sacrificing option buying power.
When was the last time you had created an iron condor in zerodha?
Please do this trade on monday and let me know if you succeed
Short: 35400 PE and 35600 CE
Long: 35000 PE
Long: 36000 CE
Option buying power is not required because we enter the short trade first (only margin is required). For fire fighting you can keep 20% capital in cash
80% of your funds are in ETF giving you 3% guaranteed returns and 72% (90% of 80%)+20% = 92% of your funds are available for option selling
Will try this trade on Monday.
16 Rs [without pledging] vs 16.8 Rs [with pledging] on a capital of 80Rs.
Use any proportion of your capital for cash MF/ETF for pledging. My personal opinion is it doesn’t offer significant benefit.
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Nothing like that, we do allow those many number of longs of any strike prices in nrml equal to shorts. You can check it on monday and let me know.
We have stopped supporting pi long ago and we recommend users to use kite. Also it doesn’t make any difference now if one is trading on web or desktop.
Brokerage should never be a deciding factor to switch, considering the current rates. You can choose to move for ui/ux reasons or features etc or as you mentioned you were not able to trade OTM longs on index.
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#20210715779687 – Unable to convert from MIS To NRML
#20210625241563 – Option buy is getting blocked
Please refer and let me know what you think? I have attached all screenshots in zerodha ticket - If you insist i can post it publicly
Position can’t be converted from mis to nrml in any case, I have mentioned above on this thread.
One can add longs equal to shorts, irrespective of call or put. For ex: one has 4 lots puts short, one can buy 4 lots call or puts long, or 2 lots of call and 2 lots of put or some combination of that, any expiry.
@viswaram yes the same problem for me , i am also option seller with the capital of 1 cr , hedging in zerodha is very diffcult , i already open 2 company , one in 5 paisa ,another in fyers , fyers no need to have maintain 50:50 rule there , please give your opinion to move fyers or 5 paisa
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@TradeB2B is it possible to register on 5 paisa forum without a trading account there? I think there’s sm restrictions. I want to ask few questions on public forum b4 anything.