Will be charged extra margins in Equity derivatives?


#1

Will Zerodha charge me extra margins for F&O trades since SEBI has come out with a circular regarding the same? What will be the impact of this change for me as a trader at Zerodha?


#2

At Zerodha, we have always blocked the exchanged stipulated SPAN + exposure margins when a client opens a fresh position. So this SEBI circular won’t make a difference when it comes to opening new positions.

However, after the circular comes into effect on June 1st, you will be charged exchange penalty if the position goes against you, and you don’t have the necessary funds in your account to match the SPAN+Exposure requirements.

Also, our RMS team may square off the position after a margin call, if you don’t have SPAN + Exposure. Refer this post on tradingqna for more information.


#3

Based on client profile some brokers used to collect only span margin but with this sebi circular all brokers will have to collect span and exposure (extreme risk ) margin from June 01. i think Zerodha is already collecting both margins so there will not be any additional .