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

[ShubhS9]

@trance_queen

Mis/CO margins have remain unnchanged for equity cash . Is this final or will they be reduced in the future or post 1st dec?

Reduction will start from December 1st in phased manner as explained above in main post.

[trance_queen]

I thought for cash stocks reduction will start from 1st sep and for F&O, it will start from 1st dec.

[Kiran_247]

Regarding selling T+1 holdings. Is there any change which eliminates short delivery and/or its penalties? Or is BTST carry the same risk as before?

[ShubhS9]

@Kiran_247

Regarding selling T+1 holdings. Is there any change which eliminates short delivery and/or its penalties? Or is BTST carry the same risk as before?

The risks associated with BTST continue to remain the same.

[upanand]

Can i Sell the holding stock without any margin amount on my trading account ?

[ShubhS9]

@upanand

Can i Sell the holding stock without any margin amount on my trading account

Yes you can.

[rahul1777]

@ShubhS9 does T+2 days settlement include the holidays like weekend or only the trading days? Like I made a intraday profit in cash on Friday will the profits be added on Monday

[ShubhS9]

@rahul1777

does T+2 days settlement include the holidays like weekend or only the trading days?

Settlement period only includes working days, weekends or any other holidays aren’t included.

[27_ABHAY_YADAV]

@ShubhS9 Can zerodha Will come with margin Funding product As leverage is Gone Reduce in future
Any chance?

[shenoy]

@nithin

Assume you have 100 shares of Reliance in your demat and no other money in your trading account. You can sell these shares and use the proceeds to buy back some other stock. What we will do is debit your 100 shares of Reliance and give it to the exchange before 7.30 PM on the same day. Thus, no margins are required for selling, and this value of Reliance shares sold can be used to buy shares of some other company. 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. Brokers will not be able to allow you to take such positions even if you wish to, since the penalty from such shortfall cannot be charged to you the client, but has to be borne by the brokerage firm.

What if I sell 100 shares of Reliance on NSE at 10 am and buy back 100 shares of Reliance on BSE at 11 am? Would this be possible?

[IRA]

pls admins reply vvimp
1)say i am long on nifty 1 lot at 11750
2)i have bought 11700 put of the same expiry
3**)margin for this hedged trade is approx 40k which i pay immediately(this include paying full price for option buy upfront)**
4)if market goes to 11650 i am still bullish now what margin i will require
will it change or remain the same

[nithin]

@27_ABHAY_YADAV

@ShubhS9 Can zerodha Will come with margin Funding product As leverage is Gone Reduce in future
Any chance?

On our list of things to do.

[nithin]

@shenoy

What if I sell 100 shares of Reliance on NSE at 10 am and buy back 100 shares of Reliance on BSE at 11 am? Would this be possible?

Yes possible as of now without any margin. From Dec1st 2020, it may not be .

[nithin]

@IRA

pls admins reply vvimp
1)say i am long on nifty 1 lot at 11750
2)i have bought 11700 put of the same expiry
3**)margin for this hedged trade is approx 40k which i pay immediately(this include paying full price for option buy upfront)**
4)if market goes to 11650 i am still bullish now what margin i will require
will it change or remain the same

Margins will remain similar, but you will have MTM losses on futures positions that you will have to transfer to your trading account.

[IRA]

shall it be net amount or whole loss on futures
ie for futures i am having loss of 7500 and from option i have gained 5000 so i need to pay net loss ie 2500 or whole 7500
thanks

[nithin]

Options gain doesn’t get credited until you sell it. So you have to make good of the entire future loss.

[IRA]

k thank you very much

[VARUN_BHOLA]

i wish we can use 100% of proceeds in doing BTST

[siva]

You can use to buy other equity but not for fno, only 60% for fno.

[VARUN_BHOLA]

oh what really !! i can use 100% proceeds in BTST for equity …thank u …siva …then its no problem for me