Yes brokerage will go up in case of zerodha…best solution is close account with zerodha & switch to another broker
1 Like
Zerodha already charged short margin penalty & 40 as brokerage. If the option was 23 lots they charged 120. I left zerodha & found relief
Most brokers are same when something hurts their income they cry cry till they make changes in thier favour they wont remove exposure margin from hedged trade(SEBI own report suggested and even external EY report suggested the same) as thier Intrest income from FD of our money gets reduced they are like greedy mosquitoes who only want to suck money from clients n not push for reforms which are world wide bench mark inspite of having largest volume in Fno trades in the world.they are also spine less .pushing to subcribe if you want basic funtions of option chain they are CHEAP real CHEAP
1 Like
Is the brokerage increase specific for the trades done after the margin shortfall or the trades done on the entire day?
Only during the period when there’s margin shortfall and account has negative balance.
Do more of this shady practices LAW of KARMA Sebi: Sebi mulls stock payment system bypassing brokers - The Economic Times
2 Likes
then i dont believe the same can be implemented by the broker.
I can enter into a trade in the morning and absolutely do nothing after the positions has gone to margin shortfall.
Since i am not taking further trades - broker will not be able to charge me.
system is not foolproof
need to see how Zerodha reports these trades. I’m optimistic that they will come up with a feasible solution. need to hear more from them.
Other brokers have yet to talk on how they are going to implement this. that would be interesting to look frwd too.
This 40 rs brokerage may not be applicable to most of the traders. the ones who take hedged trades for margin benefits, they may be affected by this the most as when they exit the position which reduces the risk which spikes up margins.
What makes you think that? Check this notice by NSE https://archives.nseindia.com/content/circulars/INSP52711.pdf Penalties were never supposed to be passed to clients.
2 Likes
Okay this is interesting.
1 Like
If that is the case, when selling options, one can easily sell twice (or even thrice) the number of lots than allowed by their margin by taking hedged position when opening the trade and exiting hedge soon.
These 2x-3x naked positions are a systemic risk to the broker.
Most brokers RMS system will block closing long call/put position saying insufficient margin pls close short position first (i can say confirm for paytm)
1 Like
The moment the margin goes negative brokers system will close even the short positions. Plus additional brokerage. So you are not really benefiting from this action.
May be if you just want to put the broker at risk even if it’s at your cost then may be you can do this. 
1 Like
Margin penalty was not supposed to be passed on to client from starting itself and not from 1st July 2022. This can be clearly seen in NSE circular.
Will zerodha be refunding margin penalties that were charged before 01.07.2022??
2 Likes
Sebi has tight the nuts of brokers very tightly they even went as far as to finance ministry to alter it 
but they will not work for us(retail) giving shitty reasons n all.they dont want to remove exposure margin for hedged trade beacuse they earn significant amount intrest from it forget about reducing risk in the system 
n give us lecture on blah blah …
Then pls ask them for what they are collecting exposure margin for fully hedged position
I am not sure but I think that comes from the exchange. So broker has got nothing to do with it. Correct me if I am wrong.
Ashok, until Aug 1st, when intraday margin increase was being considered for margin penalty, this requirement was impossible to comply with; that is the stance most brokers have taken. Since Aug 1st peak margin penalty is based on the beginning of the day margins, this issue was fixed, so we have stopped passing penalties. But that said if accounts are short margins, we are building systems to automatically square off positions.
1 Like
When the risk management review committe meet to discuss this some brokers and clearing corporation voiced their objection .the margin money we keep generates 10 to 15 percent of total income from intrest they generate from the money inspite of SEBI,EY report supported removal of same
How much SPAN and Exposure to charge (the logic) is decided by SEBI and not by exchanges. Exchanges only follow the logic to determine what the actual margins should be.
Let me give you an example; assume you hold this position
What if the account balance is Rs 38k and exit the put options but not futures positions? A position worth Rs 1.07lks and only Rs 38k in the account. If the exposure margin weren’t charged, it would be a lot worse, the margin would be only Rs 21k.
Hedged positions carry a huge execution risk. Unless you can force people to enter and exit the portfolio of F&O positions together, not charging an exposure margin is risky. The issue with forcing people to enter and exit together is an illiquidity risk. In the US, there are market makers who buy the order flow from brokers and hence guarantee liquidity, this is rightly not allowed in India. All orders have to get executed on the exchange.