Update 4th Aug 2020 - Margins for trading stocks & Intraday leverages

@nithin @siva
How much all this will affect commodity trading ?

We will have to wait and watch.

Can anyone tell me, what is the maximum leverages of equity after sep 2021?

5 times.

Hello Siva,

How proceedings from sell of delivery stock will be treated? Will it be available to buy fresh stocks immediately.

How about diff of amount between multiple trades ( one being profit and other being loss) treated on same day. Why dont you explain all scenarios with example.

@siva @nithin

Please check your penalty code. I am sufferings from more than 2 years from incorrect application of penalty in FnO. I have penalties applied even when I have positive balance in my ledger balance, which run into thousands of rupees. I don’t have any equity leverage from demat account used. I trade directly with cash. I have been asking to send me the calculations, but never received it till date. Multiple support queries have been logged. Now that, penalties have started on Equity, multiple members will be penalized for no reason

I moved to Zerodha, to avoid brokerages, but now, the savings in brokerages, I am paying it in penalties

Thanks Nithin. How this amount (Profit from intra day trade, sell from T1 stocks) will be visible on Kite. How interface will look like? When 40% margin from T1 stocks will be released. Will it be next day or T+2 days form when it is sold.
Well I can try some trades to understand all scenarios but not sure if it be right thing to do.
Can you please create a topic and explain them with examples as I see many people have requested it.

Dear members.

can anyone plz reply to my query.

1)if i trade in index options intraday MIS.For example say i have margin available 20k in my account and i buy banknifty weekly expiry call 9:20 am at strike price (25(1lot) * 500)=12500 and if it goes in the money (25(1lot)*525= 13125) and now i want to exit the position at 10:00 am same day,do i need additional 13125 in my account to exit that position?or index options remain unchanged (as there is no leverage in that )

2.plz provide a link where in i can see the margin requirements for different segments.

i have already visitied zerodha span calculator page but if you guys could give me explanation with example will be much better.

Can you post the question on the other thread that I linked.

The penalties were mostly because we used to give an option to customer to decide if he/she wants to use proceeds from intraday profits or exiting positions to be used immediately. In the new mechanism, the broker has to stop that option, which means the penalties will stop.

  1. hmm… No, you don’t need money to exit your positions. I had advise you to first read up on options before trading in them.
  1. To buy an option you don’t need margin, you just need full premium value. Margin is required for futures and shorting options, which you can see on span calculator.

There are situations, where, I was within, 1% and less than 1Lakh marign shortfall, but was charged the highest penalty on the first day it self. One of the funny situation was I had a short fall of few hundred rupees, but got a penalty levied in more than thousand rupees

if i bought 1 lakh worth of reliance today and on next day i.e T+1 day i got 5000 profit and i sold it …then can i use that 1lakh and 5 thousand rupees on that day (T+1day).

also do i need to have margin while selling that shares on T+1 day

please help

Please post here.

@siva : By when can we expect additional list of shares to be made available for margin pledging.

By this weekend.

hello sir
why sebi need such changes and what will impact of such changes on small traders like us ? is short is it good or bad?

But assume you sell 100 shares of Reliance at 10.00 AM and then decide to buy back the same stock at 11 AM. The issue now is that at the end of the day, there will be no stock for EPI as this becomes an intraday trade. While there is no position at the end of the day for margin reporting, at 10 AM you would have 100 shares of Reliance short which would require a margin of around Rs 40,000 (20% of 100 x 2000) in the peak margin reporting regime. Since this Rs 40,000 isn’t available as margin, this would entail an upfront margin penalty from Dec 1st 2020

Hi,

Im bit confused here. How would you differentiate between intraday shorting and someone selling holdings? And if you can differentiate why sebi is asking to collect margins for selling holding. And i hope this doesn’t mean any sort of ban on intraday shorting. :frowning:

This issue will only arise once peak margin reporting starts from Dec 1st. We are in the middle of too many changes already :). We will update here more on this once there is clarity. But yeah the way the rule stands today, from Dec 1st, if you sell your stock holdings and you want to buy back intraday, for buying back you will need the 20% margin.