Why zerodha has reduced BO/CO leverage?



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.


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.


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.