NSE gives out a membership called alpha membership, where you can trade yourself and have a maximum of 50 clients. Unless if you have some propreitary technology, in today’s world where the brokerage rates have dropped so much, I don’t see any benefit as such becoming a member. Cost of compliance and technology is quite a bit today.
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Actually as a member you need more margins. For example if 1 lot of Nifty future you need 20k, we at Zerodha allow you to trade using MIS at 8k, but what you need to know is that the rest 12k is actually blocked from Zerodha’s margins at the exchange.
So if you become a member on NSE, you will need to have entire margins to trade. When your margin utilization reaches 90%, exchange disables all the member terminals temporarily. Actually a lot more riskier than trading through a reputed brokerage.
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Yes positions won’t be squared off because he would be doing his own risk management. But if margins drop below SPAN, exchange puts penalty. If margin utilization(including), reaches 90% of the capital lying with the exchange, exchange disables the all the trading terminals that is mapped to that member.
So Can you please clarify regarding this :
If I have taken an NSE Alpha member ship paying 25 L
25L = 10 L (Base Minimum Capital) + 15L (Provided for exposure).
Say , I provide another 12L to a clearing member.
How many lots of Bank Nifty weekly options can I sell naked Intraday.
for the amount 12L + 15L .
Is SPAN margin different for Intraday and NRML by exchange.
For info ,
Zerodha - NRML requires 60,000 per lot. 30 for SPAN (25000 * 40 * .03) and 30 as exposure.
And 24000 for Intraday.
If you visit this link, you can see the deposit requirements.
The clearing member will require you to have SPAN + exposure for every lot. You don’t get any margin benefit by taking alpha member.
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