So now extension given to 31st aug nothing will change from 2moro till 31st aug right ?
No, 20% of total but exchanges will collect var+elm.
@siva-reddy What does this mean, then?
TM/CM means brokers right?
And âupfront marginâ is Var+ELM and not total buy value, right?
So TM/CM needs to collect minium 20% of Var+ELM.
But CC will collect 100% of Var-ELM from the TM/CM.
So if var+ELM is alreday 25% then brokers are free to collect just 20% of that so that will be 20% of 25% = 5%
It seems confusion is due to def of upfront margin.
@nithin
Var elm is immaterial now, flat 20% of trade value will be collected from client
Thatâs where confusion is.
Document says 20% of upfront margin.
And I donât think upfront margin mean full buy value or contract size.
upfront margin means Var+ELM.
IMHO.
Doesnât say 20% âofâ upfront margin, â20% upfront marginâ
I dont wan to jump guns here. But my guess is right.
But only @nithin can clarify.
And badly worded document say 20% upfront margin in lieu of Var& ELM". Doesnât mention 20% of what. My guess is 20% of Var+ELM. And if this means 20% of âwholeâ then obviously SEBI chief wanted to play pranks on desperate brokers who were aggresively petitioning SEBI.
If we go by your interpretation, then only message is implementation from 1 sept as already VAR+ELM > 20%
nope your interpretation is 100% wrong, Fyers CEO already clarifiedâŚleverage is now max 5x accross the board in cash segment
Donât think so
You can check 2nd line
So var+elm is required to be collected by brokers, for intraday min 5 times leverage will get but in cnc anyhow we collect full value so max 5 times leverage can be available.
5x leverage even for overnight positions in cash?
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I am a retail trader. So by habit I will stick to my guess even if its going wrong.
@siva-reddy, âbut in cnc anyhow we collect full valueâ this full value you mean is the VaR + ELM or the total value of the purchase?
For example, I sell stock-1 worth 10L and wish to buy Stock-2 worth 10L, should I have 10L cash in my account or cash equal to just the Var+ELM for Stock-2? (CNC case)
We collect full value in cnc, so 10 lakhs is required.
Online brokers collect full value upfront for overnight in cash.
for intraday in cash segment how much margin?
Min 5 times or var+elm if it is lower, from september 1st.