There is a change in F&O Margin Policy again? Can somebody explain how this will affect us?


#83

Margin requirement for credit spread in nifty is 77k for one lot, where as in upstox it is just 69k which is almost 12% less. @nitin @siva can answer why these much difference now.


#84

Give me a day, will update you by tomorrow EOD.


#85

Is there any change in margin requirements in FnO because today at market open my free cash available increased to more then one lakh from 10 thousand of yesterday while after utilising that free margin now I see that my account balance got negative.
Is this Any issue from Zerodha’s end.


#86

Hey @Prakhar_Agrawal

Please go through this post.


#87

Yes I have read this before only. I raised query even after checking from margin calculator. The scrip whose margin required was near about 90000 yesterday ,now that is showing as only somewhat 74000 for options.


#88

May be you can take a trade and compare, don’t check on option calculators.


#89

Not sure what you have checked for, if you find any difference next time can message here along with contract details.


#90

as i don’t have account with upstox , I can only check through their margin calculator only. Someone using upstox can confirm on the same. But now why the margin benefit for hedged trade is reduced drastically. Could you answer that @siva


#91

As a broker we just charge what exchange ask us to, what ever exchange charges we just charge to the end users, nothing more or less.


#92

fine with extra margin … but margin benefits are not enabled
for a short straddle bank nifty , margin blocked use to be approximately 24/25k for MIS trades … but it is 36/37k now , which is way too high ( gave my feedback to my RM though )
i do remember when margins were increased last time , zerodha initially didnt give maring benefits for the first 3/4 days and they started giving later…

i checked with mt friends using upstok and they increased the margins as well …
there is not much difference in future margins for NRML trades between zerodha and upstok …

but overall increase in margins for short straddle /strangle is less in upstok … 13.5k to 17.5k for a BN short strangle pair with priority account …


#93

Will check, but you don’t check this on margin calculator and if you have taken position, appreciate if you can share screenshot.


#94

will ask my friend to give me the screenshot of his positions with margins ( he will surely do expiry trades on thursday )…

meanwhile this is their revised margins which he forwarded it to me last week ( hiding his name and broker name because he might not be expecting me to fwd this ) …
again direct margins comparisons are apples to oranges comparison … brokerages are higher for margin trades


#95

it would be great if we are getting better margin benefits


#96

I am saying about margins about carry forward positions, they should be same everywhere, intraday leverages are specific to company.


#97

checked it with my friend …
margin is more or less same for overnight short strangle for BN with zerodha and upstoks…
i already mentioned that future margin for overnight is also same …


#98

@velu , could you please check if there is any margin difference for Nifty credit spreads like short 10900ce & buy 11100ce of Jan or Feb options.


#99

i doubt he does credit or debit spreads … anyway i will check it with him


#100

I just realized that margin required for doing a 10800 CE and 10800 PE short is much higher now. Even if you have a cover with 11000 CE buy and 10600 PE buy.
Game over for retail people with 1.2 lac in the account

Or a different way to look at it is, learn the market well and play directional trades :slight_smile:


#101

this is huge set back for option writers. with 5 lakh capital, i was earlier able to easily do 5 lots of overnight iron condor. but after this policy change I am able to do only 4 lots.

this is really bad for us. zerodha is more for long term investors. intraday traders depend on margin from brokers. but with this change in policy has left us to search for brokers who provide better margin.


#102

After this recent change in margin requirement. I am looking for a broker which accepts mutual funds as collateral for providing margin for option writing.
Does zerodha offer this facility? If not, Can any1 suggest some other brokers for this.