In that case, will we even need all these different order types for intraday?
BO will come with stoploss and target, based on user requirement he can choose.
This is cross margin benefit you get if you trade between index F&O contracts on NSE and BSE. So if you buy Nifty and sell Sensex, you will get some benefit. We are still not live with F&O on BSE, so there is nothing to register for yet.
@nithin @siva slightly off-topic question here related to leverage from brokers point of view …
assume a broker provides 1 crore leverage , conservatively they need to make 75k per month to recoup 9% interest rate …
i really dont think vast majority of the traders can able to generate that much brokerage per month … do you think these brokers are making any money ?
if they are making money then they are risking huge money for peanut brokerage
Broker is earning the FD/risk-free rate on his 1 crore even when he is giving you that leverage.
9% per year = 0.02% per day which is the cost. One crore in the hands of an intraday trader could mean tens of crores in turnover per day. So even if a traditional broker charges 0.005% he would be in the money. With flat fee brokers like us, it wouldn’t make sense to borrow money, take a market risk, to give leverage.
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@nithin If intraday margin leverage is done away with, and broker is not allowed to fund part of the client’s margin and has to report the highest margin availed during the day, how will intraday trade with the day’s realized profits be charged? Will there be a penalty on intraday positions as there is on overnight position?
Smart question. Yeah, looks like a collateral damage with all of this would be that brokers might stop allowing new positions using intraday realized profits as they aren’t really yours until end of the day when the actual settlement of those profits happen.
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So famous “pyramiding” of options buyers also gone!
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Hope this is true… @nithin you gotta confirm this.
Also, now that they have allowed brokers to fund the margin, will zerodha revert back to old leverage?
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Let this be officially put out by sebi, wait for few more days.
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confused with the last line of the article
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Read the moneycontrol article. Question:
How/why would zerodha fund client margins? I mean, the margins are still up-front and it’s not like zerodha has infinite funds, how would it work?
AFAIK, previously, the margin requirement was only for carry forward positions and not intraday, so they weren’t losing anything by offering intraday leverage, since it’s up-front for intraday as well now, why would zerodha use its own money to offer intraday leverage?
Read the thread properly.
Broker always had to put in 100% margin upfront after client has taken a trade. The contentious issue was SEBI/NSE making it compulsory for brokers to “collect” it from clients only.
So Zerdoah was always paying upfront.
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Ah, I see… Thanks for clarifying that! So I guess all that’s left now is to wait for the official Sebi circular and this nightmare will finally be over 
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What I interpret from this is there’s no taking back upfront margin reporting, this is going to happen. It’s just that SEBI is considering relaxing the upfront margin reporting for intraday trades, and put in place a peak margin system @nithin was talking about, anything above that peak margin limit, the client will be penalized, and the broker will have to fund any margin up to that peak margin from his own account based on the NRML margin as opposed to what was happening earlier.
No official circular going to come.
Intraday products were always “unsanctioned business practices”
So at the most SEBI will do is to make an understanding with the brokers that they wont use other’s money to fund margins.
The law will be against the misuse of clients’ funds. The mechanism will be compulsory reporting of “peak margins”.
@nithin hin
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