Why zerodha has reduced BO/CO leverage?

Hi,

I just noticed that zerodha has reduced BO/CO leverage from 20.8x to 16.7x for Nifty50 stocks (cash)

Just want to know the reason, Is it because recent increase in market volatility? Or other reason @siva @nithin

Yes because of increase in volatility not just past, but considering all news item pending on NBFC, expecting more of it in the near term.

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I could understand for BO, because BO is more risker than CO being a broker.
Can’t understand why reduced leverage for CO?

Risk is the same for BO and CO. An existing stoploss order doesn’t guarantee price of execution if there is a huge movement in price.

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It would be greatful if the revised leverage is mentioned in the margin calculator (or if the change is for a short period of time, its OK.)

Understand. But why is the same reduction not applicable for Futures. The leverage is almost twice for most of the stocks in futures as compared to cash.

It will be updated.

For which stock you are referring to?

Futures leverage for SBIN is 37x. If I see cash for 3000 quantities of SBIN (same as the lot size), I find 16.7x. This is for BO.

@siva can you pls help respond to this.

Futures itself are leveraged products hence the difference.

BO/CO margin further reduced to 13.2X
What’s the reason for moving it from 16.7 to 13.2? @nithin

Which stock you are referring here?

Intraday trading in zerodha is getting less and less profitable :frowning:

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Hi @siva

I am referring to stocks in NSE 100 list.
here is example of SBIN - leverage is 13.2x

even MIS leverage is 14x. How come MIS leverage could be > BO?
Shouldn’t we get more leverage than MIS when we give mandatory SL in BO/CO? @nithin

Earlier in this post you gave reason of increase in volatility. I want to know where the Volatility today?
Upstox still provides 20x leverage on BO/CO.
I can still understand 16x but why 13.2x?

Checking, will get back on this.

day by day zerodha is getting bored…pls dont reduce in leverage .

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@siva @nithin do u guys have ny plan to set leverage back 16x or 20x? Please answer. If yes then When?
I understand reducing leverage for derivative products but why for equity stocks from 20.8x to 13.2x?