You can't now use the proceeds from selling shares for 2 days

Intraday trader will kick out - from the market soonnnnnnnnnn. any way i am not on intraday trader ,…
SEBI is following USA market that’s good , i am mostly trading in USA derivatives market in the LEVEL 3 account , there is no policy change last 3 years in USA , because they build the system very properly in USA , in india only i seen different leverage from different broker say some example - zerodha is providing 2.5x , the same astha is providing 50x what the bull shut , SEBI wat to clear these bullshut from the broking industry , in USA maximum leverage you get only 4.5X , in most broker no leverage , in USA people are practiced to live with zero leverage , but in india people are practiced to live with high leverage ,

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Hi,

Here what do you mean by Proceeds? Please explain.

Profit booked from that particular option buy trade?
OR
Margin released by squaring-off the option buy trade?

Proceeds = Funds credited to you for square-off of long Options position.

@nithin

If i have parked my excess fund in LIQUID BEES , Can i sell them and buy shares on the same day? Or i have to wait for T+2 days to buy Shares

@smallcase team what’s your take on this?? How will rebalancing work with humongous size portfolio? Do we need huge amount all the time in trading account??

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You will have to wait for T+2 days.

how exactly would peak margin reporting work and how does it affect an intraday trader who trades in cash segment?

Now it’s time to say goodbye to the Indian stock market. :smiley:

@anc2015 suppose u bought tcs at 2200 at 9 am 100 shares. 2.2 lacs.

Lets say by 12 pm tcs went down 100 points to 2100 ie current value 2.1 lacs

Now by 2:45 pm tcs again went to 2300 . U squared off at this point. So a profit of Rs 10k

But wat they will now do is peak bottom point of 2100 price. At that moment if u dont adequately maintain downfall extra margin exchange will grab u and impose penalty

That fine invoice may come in a week or month and u have to pay

Eod u squared off with profit. But even then at every point of day u did not maintain margin so u need to pay fine

So u have to guess how bad tcs will fall say 2000 or 1900 and put that much margin with broker to avoid penalty

ok…but what if I place a stoploss at 2180 while entering into the trade? will i still be penalised if the stoploss hits during the day and I close my trade?

That is different topic, request you to read this post No additional intraday leverages from Aug 2021 in Indian capital markets

@anc2015 when ur SL hits at 2180 u will not have any open position when tcs trades down at 2100. So ur account will not come in shortfall list

Those positions that are kept open without providing additional margin money at 2100 will be penalized. Even when at EOD they squared off with profit

@ShubhS9 both are interconnected in a way

When i sell from demat holding exchange will not know if i short sold or a demat sale

Cash limit not created even after demat trade

All this are interwoven

Where will you go?

@siva-reddy @nithin will it be possible to have a zconnect blog with simple examples covering all scenarios in both equity and derivatives segments. That way even you won’t have to keep answering more or less the same questions over and over again

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So what happens if I don’t have required margins and I want to sell my holdings? Will the sell order not take place or will they charge a penalty for that too?

We are still not sure about what exactly will happen. The way things are at right now, if you sell any stock from holding, you will not be able to use it for anything until T+2 day. Apart from that nothing else really changes.

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Like I said in the original post, you would not need margin for selling from your holding. You will not be able to use the proceeds for anything.

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does zerodha have early payin system through which traders dont have to wait for T+2 days to initiate a new trade? and when you say we cant use the proceeds for a new trade does proceeds here means (old amount + recent profits) or just recent profits? also, will this t+2 settlement issue affect intraday traders who trade only in cash segment?

Given the replies above (with regard to not needing to worry about having margins to sell holdings from demat with CNC), I’m assuming this is in place? Thanks.