@nithin So for FnO and Cash Intraday Traders who use CO BO there is no change ?
The change is to have VAR+ELM/Span+Ex at the time of taking any Position without the need of having margin Var+Elm to put another order as Sell order csuse it will be already placed in BO.
Which means for Intraday there is no change other than leverage ? Correct me if I’m wrong !
Thanks
Yes, you can. At no point of time can your margin utilization exceed the VaR and ELM prescribed. Also, margin on all leveraged product types will be aligned to require min. VaR+ELM.
Margin released can be used immediately but funds received from square-off of long PUT can only be used to buy Options.
Eg. Total Cost of that trade was 35k, 30k margin was blocked for holding SBI Futures, this can be used immediately, but 5k which was used to fund Long Put can only be used to buy another Option on T-Day.
Margin used for holding Futures position can be used anywhere, To Buy Options, Short Options, Trade Futures or Trade Stocks.
But funds received from square-off of Put Option can only be used to buy another Option.
Yes, you can use margins released to take fresh positions on same day.
What you can’t do is, use realised Profit to take position.
Eg. You take position in Futures blocking 2 lakhs margin and book 10k profit, when you square-off your position you can use 2 lakhs immediately to take fresh positions but 10k you can only use on T+1 day.
These rules are from SEBI, not from NSE or BSE. even if one opens a new exchange, they will have to follow these rules. We’ll have to form a new country for this.
What is the objective of SEBI wrt this circular?
Please tell me, is this make any impact on intraday as we make multiple trades there?
Will my margin or profit gonna block for T+2 days after every trading day?
Welcome to the Dark Ages. What will be the SEBI’s next genius move… Home delivery of physical shares?
Not sure why post was flagged. Since when Qtiyapa is a slang?
Margin blocked you can use again after you square-off your trade, but you can’t use realised profit on same day, that can only be used on next day.
@nithin I just want to ask you a tough question since you’ve interacted with authorities. I understand this rule and intraday leverage. But what do you truly feel the intentions behind this? People say what suits them like SEBI is screwing retailers to help big guys or SEBI cares, SEBI this and that.
The question is, do you feel SEBI’s heart is at the right place? (they might be wrong or right that’s a different debate). I always like to give their intentions a benefit of doubt, even if it hurts me. There were misuse of intraday leverage (SEBI could have handles it differently), they did give us a better margin framework based on risk, and this new rules MIGHT just be a road map to actually reduce the T+1 and +2 settlement cycles. I don’t know if you can criticize SEBI on a public platform, I understand if you can’t, but was just curious.
What about realised loss? Are you going to settle that on T+2 day ? How you will adjust on same day incase of loss?
Your available balance will reduce to the extent of your loss, just as it is now.
Kindly expand your pledging universe by including more (or all) debt and equity mutual funds available on coin.
Postponed
so if i read above thread correctly and summarize in single line. Kindly correct if i’m wrong.
Its realized profit that will be settled on T+2 day, and not the actual funds / capital that is allocated for trade.
@nithin @siva-reddy : if i have 50k in my account and I trade intraday cash/stock on a Monday using MIS/CO and make a profit of 1k then will I be allowed to use the new amount of 51k for intraday cash trading on same day or do I have to wait till thursday to use this new amount of 51k?
Say I sold currency options and then squared it off to release margins. Can I use that margin to sell currency options the same day?
This is true for Intraday trades but not for delivery trades. if you sell stocks from your holdings, you will only get to use those funds on T+2 days.