Oh… okay… Got it… So many changes within short time…
Thanks… Have a nice day…
So, when can we expect Zerodha to provide additional stocks for margin pledge - 1st Sep 2020?
With intraday leverage expected to gradually reduce, additional margin by way of stock pledge will help your customers.
Likely in next one or two weeks.
So until Dec. 1st there will be no change on intraday FNO margin provided by Zerodha correct?
It will be 4.16X(24% of NRML margins) until dec. 1st ?
No changes in Intraday F&O leverage until December 1st.
Why can’t sebi credit shares on T day itself, it would solve some of the issues i guess(like 40% margin blocked on BTST trades). Any thoughts ?
@nithin @siva-reddy
Today the markets in India are T+2 settlement cycle. Money has to go from the buyer to the exchange and then to the seller. The security has to move from seller to exchange and to the buyer. Unlike a bank fund transfer, this one has two legs with the exchange/clearing corporation and the brokerage in between reducing any settlement risk. Since there are still customers who use cheques to transfer money after buying shares or transfer security using delivery instruction slips, the settlement cycle has been T+2.
But with introduction of this upfront margin for stocks and with online facility to transfer stock given by depositories, taking settlement from T+2 to T+1 should be possible in the near future.
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With all these things said above why let trader do the mistake of taking a new position with the money that is not supposed to be used until t+1 or 2 or whatever?
What is the obligation for brokers to not implement this in software to bar unsuspecting traders from using the money that ought not to used?
Why let traders fall prey and collect shortfall from them?
I know how this shortfall game works between brokers, exchanges and the bank accounts used in between.
I see this as a conspiracy. Am I wrong?
Din’t get the logic what you are trying to convey here.
Leave the last statement out, can you please answer the first section?
With all these things said above why let trader do the mistake of taking a new position with the money that is not supposed to be used until t+1 or 2 or whatever?
What is the obligation for brokers to not implement this in software to bar unsuspecting traders from using the money that ought not to used?
Why let traders fall prey and collect shortfall from them?
?
sorry for spamming. but please dont take me wrong. I am criticizing this system only in the hope of it being more retail trader friendly.
I am a very heavy user of zerodha, and zerodha is the best of them all out there! 
Until now it was allowed because a lot of traders used this unsettled funds to trade intraday, so kind of gave them that freedom. But with this peak margin reporting, it can’t be allowed on intraday basis as well. So it will get stopped.
Btw most traders who took such positions did it willingly, being okay to pay the penalty, almost considering it as an interest cost for the funds getting used.
Btw this penalty goes to investor protection fund, so not the broker or exchanges get to benefit from it.
What!! Margin penalty for FnO goes to ipf and not exchanges.
yeah all penalties go to IPF.
in current margin system …we can use net premium credited of short iron condor on same day to take new positions…will we be able to do it in new margin system? @ShubhS9 @siva-reddy
Nope.
Hi - To initiate intraday trade in BANKNIFTY - At The Money Straddle, Margin required in Zerodha is approx 40k currently. Till when this margin holds good.
Till dec 1st.
Hi, hasn’t it been mentioned earlier that the current margins can be continued till Q2 2021 following the circular guidelines? You and @nithin even have mentioned that it is to be seen how it can be implemented as things are not certain as of now. But I see from some comments you guys have already decided on the margins from Dec 1. I am hoping you are saying that till 1st Dec margins provided will be without peak margin reporting.
My point of this comment is a request and a consideration to provide same margins till Q2 2021 as per the circular.
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Only way is to use the new SEBI rules wrt hedged call writing instead of naked options to reduce the margin per lot.
But for that we need basket order functionality otherwise it is very difficult to buy and then sell with the price fluctuations.
@nithin - Could you please comment?
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