I spoke to someone in customer service after realising that im getting several error messages placing my THIRD order for the same stock. I was advised by someone in customer service that I need margin.
Let me give an example to make myself clear- I have a capital of 1000 Rs in my trading account.
I place my first order of 10 shares for a stock trading at 100 Rs/share (CNC). I place a sell order for 102 .
Now when i place a third order for the SAME STOCK , stop loss at 98, why is there any margin required?
Beacause according to me even if i incur losses zerodha allows me to trade on CNC with zero margin, hence any losses will just eat into my capital. There is no question of margin being used at all.
What venu has mentioned and the blog post link he has provided, refers to futures and options.
When you are trading delivery based: assume you have 100 shares of Infy in your demat/BTST. Tomorrow if you place a sell order and stoploss, what if both of them get executed? Since they are not really a one cancels other order, you will end up having a short position in that stock.
So this is not really about you having extra margin in the account. Whenever we are able to introduce one cancels other (bracket order) on delivery based trades, we should be able to offer such a facility that you are looking for.
I have tried with one share just as a testing mechanism and it did allow me to do it on CNC successfully. All three orders were allowed. I will try with large volumes like how I usually trade and then see how it goes. I ll get in touch with you if there is an issue. Thanks!!
@venu madhav yet again I was unable to place my third order.I usually do BTST trading. So when I buy I buy on delivery for the entire amount that I have in my trading account. Is it because of that the 3rd order is not recognised, as the system is not detecting it as a stop loss order but a “second sell order” and hence it says I need margin ?
@nithin Thank you for that clarification. It kinda sucks for one to be very vigilant cos it only allows to place one order, either a sell or stop loss. I cannot move away from the comp at all. Sometimes even though I do BTST, some targets are achieved same say itself. So I have to be stuck to the comp if I want to use my complete funds in trading account Or I need to have double the amount as a backup in my account ! for the amount I’m trading.
Is there any possibility that the facility will be up ie. bracket order for delivery up anytime soon
Or I need to have double the amount as a backup in my account ! for the amount I’m trading.