Very narrow price band allowed in Nifty and Bank Nifty

venugopal · August 21, 2020, 4:36am

Yeah pls. Also include charges

maddy_Des · August 21, 2020, 4:44am

I think this will be useful to circumvent the OI range issue. Although brokerage will be high like BO but we can execute S-B-S-B-S-B in sequence to take positions outside range. Only issue is, if margins are not calculated and updated faster than order execution. If this happens then consequent sell orders will get rejected as margin benefit will not have been calculated and updated after execution of previous buy orders.
@siva-reddy wanna say something on this?

maddy_Des · August 21, 2020, 4:56am

I think firing orders by kite, basket & calculating/updating margins are two different operations and they are not synchronized. I have observed many a times that after exiting the position from position book, if we fire another order to enter new position, at times it gets rejected due to insufficient margins as the margins from exited positions are not released before new order is fired.
If this happens, with basket, orders will get rejected and all the efforts to create basket will be wasted. Zerodha don’t even have cloud orders like ICICI, where baskets will stay put in cloud even after such fiasco.
@siva-reddy

kp123 · August 21, 2020, 5:46am

Any one who wanna look at alternate brokers, just so as to reduce load on our beloved zerodha, I will post pros and cons of other brokers wrt margin benefit here.

can you post it or pm me, I’m waiting till tuesday to get it solved but meanwhile preparing the list for a backup.

Abhijith_Jain · August 21, 2020, 6:22am

Hey guys i think i have found a reasonable work around for the restriction of OTM Strikes from Zerodha!

For eg Allowed range is 11000 to 11400 PE & CE

These are some of the steps that helped me:

Step 1 - Short any OTM Strike in MIS. For Eg: 10800 PE (This will cost around 35k & Zerodha lets you short any strike)
Step 2 - Now Buy OTM Strike for hedging in NRML. For Eg: 10500 PE. Zerodha allows you to hedge once you have shorted.
Step 3 - Convert you Short position from MIS to NRML.

You will get margin benefit for hedging + you can short positions with less money!

Let me know guys if this is working for you.

@maddy_Des @Tapastanay

maddy_Des · August 21, 2020, 6:24am

Unfortunately, this will end soon as any intraday leverage in MIS will stop in few months at most.

Abhijith_Jain · August 21, 2020, 6:26am

Zerodha doesn’t give intraday day leverage more than 2.5x to 4x for index options so no problem.

maddy_Des · August 21, 2020, 6:28am

No no no no!
SEBI mandated ZERO leverage in FnO. So 2.5 or 4 is non issue.
4x that is allowed by SEBI is for Cash only and not FnO

Abhijith_Jain · August 21, 2020, 6:34am

If that is the case, this can be used untill the leverage is lifted & later shifting to Orbis is the only possible solution for Zerodha users

maddy_Des · August 21, 2020, 6:48am

Orbis has its own limitation - no pledging, no equity. 1cr net worth

maddy_Des · August 21, 2020, 8:04am

I will be reviewing Upstox, Fyers, ICICIDirect and Interactive brokers.

Out of these Upstox and Fyers are worse than Zerodha.
Both do not provide margin benefit even at ATM at the time of execution.
They ask for full margin for naked short and then will release margin benefit after execution (fyers) at the EOD (upstox). SO it really wont matter if you short first and buy later or do it in reverse.

ICICI Direct & IBKR both provide margin benefit at the time of execution. But unfortunately both are yet to come in terms with new margining rules and block 15-20% more than what NSE mandates and Zerodha charges.

maddy_Des · August 21, 2020, 8:20am

Just to give an example I calculated margins for weekly IC in nifty 11100-11200-11600-11700
Zerodha margins - 41000
ICICI margins - 75000

Matbal kuchh bhi!!!

kp123 · August 21, 2020, 8:27am

and what about other brokers like angel, Alice blue, Motilal, and few others like hdfc kotak ?

maddy_Des · August 21, 2020, 8:32am

ANybody having an account in them can review.

Mantavya_Gupta · January 4, 2021, 11:01am

It shows next month contracts how to see the current months contracts

@siva-reddy @ShubhS9

gpgane · January 4, 2021, 11:17am

Is it for last week of month ?

Ragavendran_M · January 4, 2021, 11:34am

It is the current month contract itself which is named as “Next month”. Now you can check it has been changed to the current month. All other contracts apart from mentioned in the website can be traded in all strikes.

Mantavya_Gupta · January 4, 2021, 11:48am

Thank you

_satya · January 20, 2021, 5:13pm

@ShubhS9 @siva-reddy

If one has a short position then one can buy any range OTM strike as a hedge ( has to be same quantity as short position), I got that.

But can the hedge be bought in another expiry? So can we execute calendars, double diagonals and modified butterflies (1:3:2)
Also can the short positions be monthly and the hedge weekly?

Thanks

ShubhS9 · January 20, 2021, 5:21pm

Yes, you can buy in any expiry.

Yes.