Why zerodha has reduced BO/CO leverage?

#1

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

#2

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.

1 Like
#3

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

#4

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.

3 Likes
#5

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.)

#6

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.

#7

It will be updated.

#8

For which stock you are referring to?

#9

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.

#10

@siva can you pls help respond to this.

#11

Futures itself are leveraged products hence the difference.

#12

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

#13

Which stock you are referring here?

#14

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

2 Likes
#15

Hi @siva

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

#16

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

#17

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?

#18

Checking, will get back on this.

#19

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

1 Like
#20

@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?