Completely removing leverage isn’t the right thing to do anyways. IDK why SEBI isn’t considering this.
One more doubt Nitin, in f/o we will get the same leverage till April 1st as you mentioned in a post, am I right?
What is " NSE to introduce cross margining facility from January 10 "
This is old update. Yesterday comes new update.
If that is so,it would be really appreciated if you would elaborate as to what has happened in the meeting ,specifically about SEBIs decision on f&o intraday leverage @nithin leaving no scope for any confusion,since there is no point in wasting time beating around the bush here on some random topic…
It is the same thing, yesterday’s circular says it it will be implemented from tomorrow.
What @TheDoctor mentioned is exactly what has happened.
This is what I heard from a friend:
There is a concept of peak margin reporting coming soon, brokers the way they report end of day margin will now also have to report what was the peak margin used by a customer during the day. This essentially would mean that there will be a trail of how much leverage was used by each customer. So brokers on their will can’t give any leverage they want going forward (maybe in 4 to 6 weeks this will be implemented)Will additional intraday leverage be allowed in F&O and equity using broker own funds to a certain approved extent by regulators? 50-50 chances of it coming through as all the broker forums are batting for it, even if it does, it will not be more than 2 to 3 times (30% to 50% of overnight margins
Peak margin reporting starting from Feb 17th, so post that all intraday leverages on FO will essentially stop unless the regulators agree on some additional intraday leverage for products that square off before close of the day.
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https://www.youtube.com/watch?v=yPY6Pp4kmxQ
So Exchange to all the brokers providing high leverage, after 17th of Feb 
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how do I activate / register for this facility ?
OR It would be applicable by default to all the clients ?
ALSO , @zerodha ; can you please explain the cross margin with an example ?
This is Peak CEO. This is the kind of transparency that gives us comfort and trust when our money is at stake. Will move all my funds to Zerodha if leverage is standardized.
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Dear @HSL,
It’s like Hedge position over INDEX/STK FUTURE over CASH you will get margin benefit just like FUTURE & OPTION Hedge POSITION.
Exp: LONG INDEX & LONG PUT or SHORT CALL.
Super !!! with mindless leveraging, maximum (>85%) number of retail traders are LOSERS in the intraday market.
as Nithin and Shiva rightfully pointed out hundred times before, the need of the hour is minimum/meaningful decent leverage coupled with excellent time tested STRATEGY and near perfect execution in addition to MAXIMUM DISCIPLINE, RISK MANAGEMENT, POSITION SIZING, these are the most essential building block of SUCCESS in INTRADAY trading and NOT leverage, mad and meaningless excessive leverage will ONLY ensure the retail TRADER is out of the system very quickly.
hats of to Nithin and ZERODHA for keeping the business so clean, transparent and extending help to retail traders.
Providing additional leverage for hedged positions will NOT only witness significant improvement in volumes but more importantly ensure retail traders are protected from BIG LOSS, this is a revolutionary change, love you SEBI and love to all those who in Govt and Bureaucracy who made this happen.
how do I activate / register for this facility ?OR It would be applicable by default to all the clients ?
I don’t know about this. I acnt understand this.
…Hopefully exchanges worries about the volumes and tax,fees collected…
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We’ll just have to wait to see market’s reaction to this new rule once it is implemented. Lets see how much does it affects the liquidity. And whether it’s good or not. Unclear circumstances are causing chaos.
I dont like this ping pong by SEBI.
I hope this issue will be settled once for all. Either allow or stop totally !!!
I will assume that leverages will be curtailed from Feb 17th and carry on doing my work.
In the coming days I will start writing code for options buying. Lets see if I can fight theta decay and make some profit. Hardwork ahead. Bye all.
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Would the intraday leverage for a particular equity/stocks now be the same irrespective of order type MIS/BO/CO? or would BO/CO continue to have higher leverage than MIS?
After new leverage comes all product types will have same leverage.
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