@nithin @siva @ShubhS9
Hello.
I got almost everything you discribed above, yet there is one thing i’m still confused about. It’s ‘Peak Margin Reporting.’ Is it anything different than VaR+ELM? What it really means? Why it’s applied to intraday? How will it affect us?
thank you.
Please read the first post by Nithin.
FnO profits can’t be used to get extra margin for the same day as settlement is for T+1 days. By that logic, if say, i have a margin of 2 lakh and i make a loss of 10k in first trade and then i want to take a second trade, then also the total margin should be 2 lakh only rather than 1.9 lakh as the loss would be settled after on T+1 day. Am i right or this doesn’t work like that on losing positions??
Don’t work like that. Just like any profit is credited to your account immediately, same way the loss is deducted from your account immediately.
I am talking after the new margin system sets in. In the current regime, I know it works like that.
It will work the same in new margin system regime as well. Profits you make will be credited to your account immediately (but you won’t be able to use those as margin until settled), the same way losses will also be deducted from your account immediately.
Can you give any update on this ?
Yes, if they are in demat and not in T+1.
Thanks. As it is implemented in phase, I hope 40k margin is sufficient till Feb-21 end . Is this correct.
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.
Dear Nitin Sir
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Dose this means we can’t make short selling from Dec’20 onward on intraday basis?
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Can we make multiple buying and then sale for a stock in a day?
Regards
Amitava
You can trade intraday. You can trade as you mentioned as well. But, Earlier you would have got 400 Shares of Reliance with 40k. Now you can only buy or short sell 100 with 40k. Gotcha? You just need to get more money to buy or sell. That’s what this is all about.
Yes as long as you have 40k, You can buy and sell as many times as you want. Just Reliance 100 Shares example I’m talking about
Got It!!! Thank you for replying my quires.
Regards
Amitava
What happen to this ? Are we going to use realised profit or not ? Any update ?
(Equity Cash Segment Intraday)
Neither of them. CNC OR MIS, Profits can be utilized only after T+2 Days. About the date not sure
Nithin sir Reliance industries in future trading span+exposure margin is 283383 in phased manner means
Dec 2020 to Feb 2021 - 25% of 283383= 70845 so we have to pay 70845 for intraday
March 2021 to May 2021 - 50% of 283383= 141619 so we have to pay 141619 for intraday
June 2021 to Aug 2021 - 75% of 283383= 212537 so we have to pay 212537 for intraday
From sep 2021 we have to pay full 283383 for intraday same as normal margin
Nithin sir the above the details that I have shared with you am I correct
1 Like
Correct.
I think it is from 1 sep.
Yeah, that is the minimum that has to be collected.