If I had to bet on it, yeah, it isn’t dead. But you never know.
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Going forward? This rule hasn’t been enforced yet?
Today on an intraday basis regulators don’t check for margin blocked, so yeah potentially brokers could be funding a client for intraday form another customers funds. But like I was saying earlier, it will go away when regulators start looking at intraday margin utilization.
What would happen if that other customers also want to utilise their margin , how will broker manage it.
Then broker has a problem. It is hence important to trade with brokers who are well capitalized. Especially if you are trading who gives you intraday leverage.
Is there any chance that sebi might spare well capitalised brokers providing intraday leverage for options. @nithin
Yeah, hopefully they do. Btw I don’t think brokers will offer any leverage for option buying.
Should be possible.
@nithin
I’m getting some screenshots of news that says from 1st Aug, there will be full margin required in trader’s A/C before taking any positions. is it true? Intraday Leverage is gone now?
Until now the rule was applicable only for F&O. From Aug 1st, it will be for Equity as well. Instead of SPAN, it will be VAR+ELM margin.
Can brokers offer leverage on top of it, that is a different issue that everyone is still waiting on clarification for.
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so there will be no change in margins rules for futures in intraday? will they move on as now?
@nithin. Can you guess? Being in industry for 25 years. As a trader, broker, can leverage is removed permanently? I think, these are the times, Industry is changing rapidly comparing to past few years and now this leverage is going to end? What’s your guess and opinions?
If I had to guess, brokerages will be allowed to offer with their own capital for a while. It eventually will be disallowed.
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If that’s the case then option sellers will have to hedge the positions to get the margin benefits weather it’s intraday or positional and you’re allowing very narrow range, like last week it was first 450 points range and then it came down to 200 points range. you’ve to do something about that.
i know about orbis and that’s like give something away to get something. not able to trade in equity isn’t a nominal disadvantage. people’d consider moving to other brokerage instead of moving to orbis coz giving away whole segment isn’t wise don’t you think?
check this, only 200 points range is like you’re telling don’t trade in index here on zerodha. it’s forcing to move to either orbis and give away equity segment or move to other broker.
Please do something about it.
People started moving to orbis,hopefully in next few weeks we may start noticing it on our limits.
Also SEBI restriction limits on OI for Institutions will going to end on july 30th, this may increase overall market limits.
https://www.sebi.gov.in/legal/circulars/jul-2020/framework-to-enable-verification-of-upfront-collection-of-margins-from-clients-in-cash-and-derivatives-segments_47101.html @nithin @siva does this clarify whole issue?
Yes, nithin will put a detailed post covering it in sometime.
Closing this thread, any discussion can be taken on this new thread.