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

Sep 1st 2020.

If I want to trade in options, for example RELIANCE 2000 CE ,then I want to pay only PREMIUM (or ) else I need to pay PREMIUM along with it I need to maintain MARGINS

When you Buy Options, you only need to pay Premium * Lot Size, there is no margin blocked for Buying Options, margin is blocked when you Short Options.

Actually it is little confusing to the novices like me. While the very concept of margin and premium are different, but while going to place buy order, on the Order window it is written Margin required. While here this margin is purely premium. Though After all the amount is equivalent to premium value. So in the begging stage this margin was little confusing. It is clear now, however it still remains the same confusing to the beginners.

Zerodha allowed ASM category stocks for delivery basis ?
Intraday allowed in non F&O stocks (cash) (small caps, mid caps) ?

https://www1.nseindia.com/invest/content/equities_surv_actions.htm

@ShubhS9 @siva @nithin

Is there any news about settlment from SEBI.

I have read an article that T+2 settlement will reduce to T+1.

Everything is speculation as of now.

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Check this list, has all the stocks that we allow for intraday with leverages and those which are not allowed.

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As per new norms we won’t able to use realised profit. Please make sure you make changes to funds so we can see settled funds seperately.

All the charges for trading are deducted from profit. Right ? I mean we are going to use profit after T+2 day. So all the charges are not going to deduct from current balance ?

Could someone please confirm (preferably @nithin) what I’m assuming here?

From 1st September, on Zerodha, leverage for scrips like Reliance will be 5x and scrips for which leverage offered is less than 5x, leverage would stay the same (eg, IBULHSGFIN:3X)?

Not from Sep 1st. It will come down to 5x over the next 9 months like explained at the start.

How much MIS leverage will be from 1st Sept to Dec for options selling? Will it still be 4X or will it reduce?

No changes in leverages till dec 1st, they will continue the same it is as of now.

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Hi @nithin, what’s the final update on BTST and the use of proceeds (blocked margin+profit) from sale to buy the same/different stocks? Starting sep 1, is it 100% or 60% or something else?

100% of BTST proceeds can be used to buy other stocks, for fno only 60% of proceeds can be used on same day.

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just to clarify, entire proceeds (margin + profit) can be used to buy same as well as different stocks?

Yes. If you make any intrady profits then those can’t be used on same day.

Cool. Thanks @siva!

previously u said only profits and long option proceed cant be used for shorting…then what is this 60% rule? @siva

If you sell any BTST then with those proceeds you can use 60% of proceeds for fno as now every trade needs upfront margin, so 20% for yesterday’s buy, 20% to today’s sell trade and remaining 60% to fno, but 100% can be used to buy other stocks.