Why zerodha has reduced BO/CO leverage?

We will be setting around up to 15 times, soon.

Why not setting it original state 20.8x for TCS, SBIN, HDFC and other biggies? I donā€™t see high volatility in these stocks

Our RMS team perceive other way,we see volatility is going to stay here for few more months, so we have reduced a little. Also just an update for you, SEBI may come out soon with a mandate where leverages also need to be regulated, if that happens 9 to 10 may be max irrespective of product type used.

Today I tried MIS and BO on SBIN for below

MIS Order - Qty: 500, BUY Price: 284 - margin blocked 9940 Rs.
BO - Qty 500, BUY Price: 284 - margin blocked 10735 Rs

Donā€™t you think something wrong here? BO margin should be less than MIS margin here?

Hi @nithin
Currently zerodha provides 15.2x leverage for cash CO/BO
Are you guys planning to change this in near future or it will remain constant?
Asking so that I can arrange funds in my trading account accordingly in future.

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This article talks about FNO. Here I am asking about cash segment

@nithin

@vikas1989 currently no regulation around this from SEBI, only on F&O. We might increase it though when markets become volatile, like we normally do.

Any chance to make it 20x after volatility decrease or election results? @nithin

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No plans as of now. Volatility is one thing which we donā€™t know until it hit us. Also rumor is that SEBI may come out with uniform leverages that can be provided across segments across brokers, if that comes out one canā€™t provide extra leverage and has to charge VAR( value at risk) and ELM( extreme loss margin), in that case it may come out max 10x, so better donā€™t build your system on leverages and be prepared for it.

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