Jani rajkumar equity and option traders
If I close both of them in one go, then I am fine. For no additional risk of writing a covered put of , why would you want a margin of close to 13K when 4K is sufficient. I mean I should be able to do three times with 13K in my account. Chandra, this is not a rule we can put, these are rules set by the exchange.
If we collect margin from you which is lesser than what is prescribed by the exchange, there is short margin penalty levied by the exchange. As a trader, I understand what you are asking for, but unfortunately not possible today on the Indian exchanges. The only positions that get a margin benefit is the calendar spreads, that is because the calendar spreads are quoted on the exchange.
Dear sir i am sumit kumar jha i have started trading with your trading account i have some question from you. Friday was expiry of Global contracts and hence there was a delay in the file processing. Please check your account now and you would see the credit, if any.
When you bought nifty at , was blocked, if you are selling the same nifty at , you are exiting and for this no margin is required. It is like you are selling what you have bought. We have designed a tool on ZT through which you can calculate the exact margin benefit even before taking a trade, Click here to see the SPAN calculator. Actually in terms of margin I usually face a problem, for many a times I do not regularly track my margin requirements and which in turn squares off my position, even though I wanted to continue in that scrip.
I have a suggestion, if zerodha even if at some cost, starts to provide us alerts before sometime for our margin requirements so that our position is maintained. Tushar, sorry for missing your post..
Presently there is no such facility for us to message you, but will bounce the idea of our risk management team and see if anything can be done. Hello Team Zerodha, You have been evading answering this for a while. I hope you would own the responsibility of assuring your clients that. Please realize that not answering is not an option. Can you confirm the following that: Your trading platform takes care of stipulated margin requirements when a trader places order in FNO for taking overnight positions?
Trader need not worry when your trading platform shows enough acredit balance at the end of trading hours 3: As long as you are taking a position with order type as NRML, stipulated margin requirement will be blocked while placing an order. Your definition of enough is not clear. But as long as you are having exchange stipulated margin it should be enough and nothing to worry about.
That said, the important thing to note is that margin requirements are updated by the exchanges 5 times during the day. There is a possibility that on an extreme day, the movement in the stock could be so drastic that margin requirement might go up suddenly. When you write deep in the money options, this rule might again not apply. Same query was posted about 3 weeks back along with a query on algoZ where I also mentioned that Zerodha seems to be ignoring the basics.
While answering that query you assured to get back on the margin query but never came back. I always want to play by the rules.
That is the reason I also want that rules are being enforced in spirit and the mechanism to enforce them is not faulty. Helpdesk at one time has said that I can rely only on margin statement. Now that is not just impractical but unfair too , as positions have already been taken relying on your trading platform. And, this keeps happening for many days for without any change in the underlying positions. Snapshots of discrepancies have been sent to compliance dept multiple times.
It would be worth checking your systems for bringing them in sync. Now that I have heard your query out, I can see another reason why the margin statement may differ sometimes. So for eg, if you 5lks in your account and bought 4lks of options. Tomorrow you sell the 4lks of options for 4lks. In tomorrows margin statement we cannot show this 4lks credit because it is not realized.
If we have to sync the margin statement with the trading terminal position on this, we will then not be able to allow trade on options carried forward and which is sold. Hi, I have a doubt, if i sell 10k worth options in morning and can i buy options in the afternoon same worth of 10k. Hello, Your margin policy ref: Hello sir, i want to ask that how many margin zerodha gives for intraday trading , suppose i having 10,???? Blue chips for intraday will typically be upto 10 times , but if you use cover orders you can get upto 20 times.
Hello sir, I want information about intraday margin for equity future. If Nifty margin is for positional, for intraday wheather it is or Please clarify this as early as possible. For intraday you can trade using MIS as product type or else you can also use cover orders. In cover orders you have to buy market price and compulsorily put a Stop loss. VMGJul 10 , 8: Now I want to confirm only about covered order.
Covered order means just an automated order executed as per market rate and stop loss order is also automated calculated.
Please read this blog on Cover orders: Margin depends on the future that you are trading, you can see the margin for various contracts as explained in the blog above. Sir as i am a student so i want to trade with little money. Can i trade with Rs after i learn properly i will add more money to account.?????
If i use margin in my case let my investment is and i got leverage of 10times then i can total trade for Rs then what interest i have to pay for using margin??????? If you are trading on equity depending on what stock you are trading you get 3 to 10 times. So yes for eg you can buy 50, worth of reliance with only in your account. But this leverage is allowed only for intraday trades and you have to square off by 3. Sir i checked out the margin policies Excel and found that in cover order the stop loss must be 1.
But take this example. If i buy opto circuit at 30 and according to this stop loss should be Now i can buy approx shares. All i want to ask is if i use only margin which gives 8times for opto circuit then my total money will be and i can buy shares approx.
It is much better to earn a little than losing a lot. Ya i know if price fell i will suffer huge loss but as opto circuit is a high volume stock increase in only 25paise is somewhat possible.. You can choose to place limit order as exit order as well. Cover orders is for people who need that extra leverage, more than the 8 times that you will get from MIS, for these people only we ask to put SL if using cover order.
Hello, may i know the margins required for selling stock futures as shown in span margin file or other and MIS, CO both are applicable for selling future contracts.
Sir i want to know does Zerodha have instant order execution. Lets say after 1 hour the price is hovering around If all shares get executed when price touch Reply please i am curious and waiting. The order at So if you were the first person putting the order at So execution of your order will depend on how many people buy at When you write an OTM option, when market goes against you the margin requirement will keep going up daily.
You will have to track the margin requirement for the option you hold and ensure that you have enough funds to hold this. You can use the SPAN calculator to know what is the exact margin requirement at every point of time. Click here to read about SPAN calculator. You mean margin for writing options right? We have a tool for this called SPAN calculator , read the blog. Usually writing for options is around future margin if you are writing in the money options and it keeps reducing as and when it goes out of the money.
See the blog on Span calculator if you want to see the exact amount. As mentioned in point 5 in the above blog. Vicky Aug 6 , As mentioned in the blog above, you can login to the backoffice and get the SPAN file. This will be updated everyday. You can also use the SPAN calculator for this. Rohit, the SPAN file can be found on https: Need the span margin file for equity option writing.
Its a pain to use calculator for every trade. Send us a letter with your client id and asking to close your account with signature. We would do it. VMG Sep 14 , As per previous response from your side regarding trading account closing please provide address where to send account closure letter with signature.
Is there any account closing form or only letter with signature is enough? Any document is required to attach with letter? Just a letter is good enough. Does margin required for future trading depends upon whether i buy or sell future? Ifnot,from where I can find that one? In margin policy, it has been stated that Once bought as NRML, you can hold the contract till the end of expiry as long as you meet the MTM obligations on a daily basis. I have sold 1 lot of Mcleord Russel. Now If i check my open position at end of day, it has got 2 columns which is confusing me — clos.
SO I should infer from this big amount? I do not have access to your software with margin calculator,it will be great if you can post the reply here.
Can I use my demat holding of 1 stocks 2 Equity mutual funds 3 Debt mutual funds , for margin of option position. Are there any extra charges for it. I am already in communication with aforementioned email id. Can I buy mutual funds through my Zerodha account OR can I transfer mutual funds from other demat account to zerodha account I know shares can be transferred.
Do zerodha maintain any document where user can get the haircut percentage for the stock , mutual fund he wants to pledge. You can click here..
If I sell the stocks from my demat holdings, Can I buy back the shares immediately if it comes to a lower price on the same day? Also by default, the intraday chart shows 22 days data. How to make it to show just the current day intraday chart by default? I tried using the template but it doesnt seem to work. By default it will show 22 days and this has been made because of request of a lot of traders. To look at 1 day chart, you will have to zoom into or select by left clicking and dragging on the portion u want to see on the chart.
Thanks for the quick reply. Is there any way to make 1 day chart as default, as I will close and open the charts many times during a trade according to my convenience? Does the span margin calculator in Nest , works for currency options. The margin for trading currency went up quite significantly, we had sent an email to all our clients informing that.
Here is the link of the email. These positions might not have been taken on same day…. Check this blog on position conversion.
I wish to place a vertical credit spread on nifty options. But am confused regarding the margin requirements. I wish to sell option writing 4 lots of nifty ce November expiry and buy 4 lots of nifty ce November expiry to hedge it. If yes how would I go about placing the orders sell 1 lot then buy 1 lot and repeat 4 times? When you sell calls and buy calls, the risk is reduced and hence the margin required to take this position also reduces, but not to the extent u r expecting.
If you want to naked short calls Nov margin required is and to buy another So why does the exchange require a larger margin? Theoretically yes, but there is an execution risk while taking this strategy.
What if you exit one and not the other once taking a position with lesser margin? Unfortunately other than calendar spreads you cannot trade any other spread directly. I am already a client for only trading in FNO. I am interested to do Intraday trading in NSE equity but its not showing in segment. I want to trade using Zerodha trader in NSE equity no deliveries in this case how to get userid for same and what will be margin? So you have 2 options for this:.
If you have any existing demat account, send us a copy of your demat client master report the statement which carries your Demat account number and your name requesting to map to your trading account. Once this is done, you will automatically start seeing the NSE equity segment and you can start doing intraday trading in equity. But note that if you link some other demat of yours, you will be able to buy stock for delivery, but you will not be able to sell that through us, you will have to sell that with the broker with whom u have opened the other demat account.
If you want to trade delivery based as well, open a new demat account with us. You can call the sales executive who helped u with the trading account or call on for this.
Can you tell me what is the interest rate that amount you give us on margin attracts. Ashu, Futures are inherently leveraged and there is no interest that you have to pay to hold that position.
Risk of running brokerage business, whichever part of the world. Firstly I hope you are using our SPAN tool for calculating option writing margin, here is a blog on how to use it. When you write options since the risk is unlimited a margin is blocked and similar to futures this is marked to market and hence need keep your margin requirement updated daily.
So if the position starts going against you, you would have to ensure that the minimum required margins are present. These margin requirements are as stipulated by the exchanges, and not really in our control. Also, I get your point of SL and etc, but as you know when blocking margins exchanges have to think about the worst case scenario, is the margin enough if there is a drastic movement in the underlying, which probably happens once or twice every few years.
It is important to not compromise on this risk as both exchange and us as brokers. Yeah, you are right Nithin, I was not considering gap openings and as a broker one must have safe margins.
Still have one more question, on a day like general election results when markets hits double circuits, how do you ensure margins? I have pledged shares worth 6. Though I understand the logic of asking for a balance I still dont understand why you cant let me trade. One of the reasons for asking for this cash margin, is because selling a pledged stock is the last resort we want to take.
Sir I am a client of Zerodha and want my ledger balance for a particular fy like or for any specific period than how can I get that. Sir I have a Demat account with another broker and having only trading account with Zerodha and I am having soft copy of the said demat account detail, Further how can I link that account with my trading account at Zerodha with that soft copy details.
Take a print, sign, and send the demat account details to our office in Bangalore asking to map it to your trading account. This will be mapped to your trading account, but do note that when you buy stocks at Zerodha it will go to your demat, but while selling you will have to sell with the same broker whose demat you map. Thanks for the reply but can I trade with demat of other broker in Zerodha on intraday in equity trade. Yes you can trade intraday equity.
Also you can trade futures and options for both intraday and overnight. Hi Have Pledged shares wortth Rs 6. Cash balance of about 50 K. Kept an overnight position which requires a margin of Rs 60 K. This has now been debited to my running account and the balance has gone into negative.
Shouldnt only the margin be debited to my collateral account and any MTM profit or loss should be transferred to my daily running account. Hi Nitin, as stated by you in jan , zerodha going to start leverage for delivery in Equity likewise in margin at present e. You can trade 2 lots of Crude Intraday with Rs. Deepak, leverage for delivery based trades is not something which is in our priority list right now. We will think about giving leverage for delivery based trades when we have a DP of our own.
My advice to you is to figure out a good system for trading intraday. Or if you feel your position will make money in a couple of days instead of on the same day, you can trade futures which is already a leveraged product that can be held until the expiry date with just a fraction of the amount.
Can u please tell me what is the square off timing for delivery based shares which I had purchased yesterday? Is the square off timing is same for all traders or different for brokerage firms? For delivery based shares, there is no concept of square off. Once you have paid full money, you can hold for as long as you want. Yes, we provide BTST facility, check this blog: Yes, you can sell before delivery, and the margin is released, but do understand the risk in BTST.
If this is true, can you please let me know how this can be done? We will soon have this put up as a post. Nitin, thanks for the prompt reply. I would be carrying the position till expiry. So I wanted to know that the margin required would be the one which is shown in span margin calculator after the margin benefit. Will I get Margin benefit or not?? Actually I wanted to send you the screen shot of the span margin calculator which I had calculated for my positions.
How do I send it to you? So I will be able to do intraday for 3 lacs worth of shares, Correct? I will be trading 1x in each of those 3 shares with the same 1 lac investment. In either case I will be trading an amount worth 3 lacs in total. In that way I could average my risks and stay in assured profit and also generate more brokerage for Zerodha: If I am getting your question correctly, yes you can buy 3 different stocks for Rs 1lk which has 3x margin.
Let me tell you how it works, assume you buy 1lk of first stock, if it has 3x leverage, around 33k is blocked in your trading account. You still have 66k left that you can use anyway you want, trading 3x stocks, 5x stocks or whatever.. Gold near contract is pretty liquid, and you should be able to trade all of them at one time. But if you have to place 20 lots of gold, you will have to place 2 orders of 10 lots each.
A couple of questions. How do I transfer Mutual Funds to Zerodha account. Which MFs can be transferred? How do I pledge them after they are transferred? You need to first transfer it to your demat account opened with us, once it is in the demat send an email request asking to pledge the MF. Email request is good enough. I want to do intraday trading. You can place a limit buy and limit sell at a same time, but you would require 2 times margin.
But if you enter using market, and put a limit to exit, then you need only one time margin. It will be easy for you to understand. We might in the future, but no plans as of now. Today it closes of Rs. That means i have to pay rupees from account to maintain the margin before next trading. I have to pay again or will be added to my account compare to previous close.
Margin would be detected from the date which i write the option or the previous close of the day. In option writing, When you make a loss, margin required increases, and when you make a profit margin required reduces. So if price is and then today closes at , the margin required will reduce. Thanks lot for quick reply. That means again i should have to pay rupees for the closing of again on the next day.
No Nithy, if the price was Rs the previous day and today it closes at Rs , you are in a profit of Rs , so you would not have to pay, Rs will be credited to you. Is the same process for Future selling also? But i read the article. If i sold for Rs. I have to pay 20 rupees from my pocket. I have to pay only 5 rupees from my pocket compare to previous close. Futures have what is called as daily marked to market.
So assuming you sold at Rs and today it closes at 80, R 20 is paid to you as profit. Next day if it closes at Rs 75 you get paid Rs 5 because you again make a profit since you are short, you make money when market goes down.
If assuming the next day it goes to Rs 85 since you are short, u lose when market goes up , you have to now pay Rs This process is called Marked to market. The money has to be first transferred to your trading account from savings, before you can purchase. When you sell next day, money will come to your trading account in 2 days after you selling if you want to withdraw, but if you want to buy something else, you can do the same day. Brokerage at Zerodha is Rs 20 flat per executed order or 0.
Hi Nitin, Thanks for the quick reply, Currently I am holding an account with diffrent campony demat account, I wasnted to verify the charges they are doing, so that I can close the account immdeialty if ther is any thing wrong. On thursday 10th april I had bought shares of compony per share is Rs with NRML type , on same day I could not square off all the shares that I bought in last minute I had kept sell order with market price, in which shares transaction is not completed , When I check my linked saving account next day 11 th april they have deducted around Today since it is holiday for Bank and tradinng I could not connect to their customer service to know about the deduction.
My question was , 1 What could be the amount I know it is long story , however I wanted to Confirm what they are doing is correct if not I need to close account immdiately to save my hard earning money. Looks like the brokerage you are trading with is either a bank or else has POA on your bank account also as money is directly debited from your bank account.
It will not be possible to comment on the process followed by the other brokerage, it will be interesting if you can fill us in, once you have the complete details on this in the next few days. Hi Nithin, Suppose I have Capital.
I purchase 1 lot stock future for 30, and 1 lot Put option of same stock as a hedge for 10, and 10, cash left. Zerodha will trigger selling my future at what price.. Firstly if you are buying futures and buying puts, you will get a margin benefit, you can use our SPAN calculator to see that. This has confused me for quite some time, i seem to have understood it now..
Can you please confirm if the below mentioned working for a hypothetical scenario is correct? Margin Requirement for this position — 50k Amount i received from selling the straddle — 15k Net cash margin blocked in my account — 35k 50k margin required — 15k i received Available cash in my account — 5k 40k cash in my account — 35k margin blocked.
Margin requirement went up to 75k however total margin available in my account is 55k i. Can you please provide some clarity on this aspect? Sukesh, the rule of squaring off positions would depend completely on market conditions, so it will be tough to put an exact number on this. However now the requirement has come up to 50k. Is this a temporary phenomenon due to increased volatility because of upcoming elections OR is it due to the fact that Nifty is trading at very high levels now?
Secondly, with the expected increase in volatility, the margin requirements have also gone up, and probably will go higher closer to election results. Will the margin requirements go down once the perceived volatility stabilizes? Also will the price level of the underlying play a role in the margin requirement? Because i feel whenever Nifty is on high levels the margin required too are at high levels. If this is the case it would be difficult for traders like me to arrange the margin amounts if the Nifty goes higher — Any suggestions to overcome this hurdle?
Usually when the margins go up significantly, exchanges will reduce the lot size, for example when nifty was at , the lot size was and today at odd it is at My assumption was that whenever the price of underlying goes up so does the margin required to trade in that underlying however as the margin required goes up.
My rationale was that the average margin required i. Now just to place a order I need to have money upfront!!
Is something can be done for this? Please try to implement some margins against overall DP holdings for delivery trades, I have many blue chips shares in my DP but not able to take any advantage of the same.
I appreciate the care and precautions you are following. I have one query though on how are planning to address this. We observe that when there is a panic in market and particularly when we see lower circuit or upper circuit, most of the brokers disconnect their terminals due to their own mistakes on margins.
I saw only one of my previous broker terminal on. Can you assure that such thing wont happen here. Otherwise we can take positions accordingly in other accounts.
I hope you will understand the seriousness of my worry and not misunderstand me otherwise. Please pardon me in that case. I was told about conservative approach by your team when I approached Zerodha. This made me feel secure. Sukesh, when an option position goes against you the premium goes up which gets credited to you, but in essence this is a loss. So the margin blocked has to go up atleast by how much you have lost the premium, but the deeper the loss gets the bigger your position becomes and hence the margin required to hold this position goes up more than how much the loss you are incurring on the option position.
It will give more opportunity to investors to trade and make good return. Other option is you may reduce this limit on request basis from the client. I agree that High leverage result in High Profit as well as High loss. Buy Disciplined Investor can efficiently use this leverage. Thanks for your confirmation, that gives me confidence that my understanding is in the right direction. How frequent is my margin requirement calculated? Is it real time or at the End of the day? Like when is it determined that i am falling short of required SPAN margin so that my positions are squared off automatically?
It is real time, and unless the market is very volatile most square offs would happen between 3 to 3. You can see the SPAN margin requirement on the trading platform itself after taking the position, and if you want to know the requirement before taking a position you can use our SPAN calculator.
That leads to my next question again I know i have lots of questions and might be bugging u.. Will all my open positions be squared off at the same time? I had sufficient margin when i opened these positions however as time passed it went against me and the margin requirement started to increase and the funds in my account were eventually not enough to even fulfill the SPAN requirement..
Now once the margin maintained drops below the SPAN requirement, which of my positions will be squared off first? A, B or C or All my open positions? Sukesh, if we had to pick one among 3 open positions to square off, the RMS team would typically pick up the position which is making the highest loss. The main reason for my confusion is because i am thinking which of my positions would be squared off if each of my positions are supporting other positions?
Since each position is supporting the other 2 positions in some way how will a decision be taken on which position should be squared off if i am not meeting SPAN requirements? But yes, it is best that you are always on top of your account and square off positions that you want to, before our RMS team does it. Have a query regarding spread benefit. I have bought say sep nifty futures and after couple of weeks would like to hedge part of my position.
So I would like to sell oct nifty futures. I know I need to provide the necessary margin required for the sell order. After my sell order is executed, would I get spread benefit as I am hedging part of my position even though mine is not a spread order? Volatility expected in the markets with the results day after tomorrow, we have to be safe as a risk management team.
I initiated a call spread on the 9th of May I bought a May call at Rs , and I sold a May call at The daily MTMs are given below:. Please explain why this has happened. When you short an option, only margins get blocked. Assume you buy a Nifty call option at Rs.
The credit is realised only if you sell and close the long option position. Similarly if you short an option and are in profits, such notional profits will no mark to market.
Only realised profits reflect on your ledger for options. Mark to Market happens only for Future positions. What about losses on short options? Are they deducted from from our account?
Because if I have executed a spread order, the loss on the short contract will be compensated for by the profit on the other contract. I furnished the details below. I request your good-self to clarify the same pls. Based on that I will workout a strategy for real time trading.
Chosen Scripts for Trading: How to work it out? How much do I need to pay? What I suppose to do? If so then how to manage it? Will Automatic Square off works, during this time or not? Yes we will start mutual funds very soon. Zerodha gives margin to its clients for the securities held in their demat account. The way it works is, the shares would move from your beneficiary account to our Zerodha beneficiary account through an Off-Market transfer which you have to initiate and in turn these stocks would be moved to the margin account.
We would then provide you margins against these shares after considering NSE VaR margins and your limit would be enhanced on your trading platform. Whenever you wish to not receive these margins, you can just send us an email request to withdraw the securities held in our beneficiary account and we would in turn move them to your beneficiary account.
Please note that at all times you would continue to remain the owner of the securities that you have transferred and hence would be eligible for all corporate benefits, whatsoever. Such corporate benefits would be passed on to you. Every broker does this as a value-added service and not necessarily as a money making process. We understand that not all clients can bring in cash to trade and since securities are assets, we could give margin against such assets for the client to trade.
For example, if you have stocks worth Rs. The Cash-Collateral proportion in your account for the position held by you will always be calculated in the ratio of Accordingly, to utilize the entire 85, collateral benefit you will need to have a minimum cash margin of Rs. In this way whole process will become seamless as stocks.
Nithin sir , supoose i am using MIS product in intraday trading and places a limit order , buy at Nishant, either call us on or visit our website and leave your contact details here for a call back http: So that means if price goes below Auto square offs happen at 3.
So with 1lk you can trade 3 lots. So you can trade 8 lots, but everything gets squared off at 3. But will be around 10k, you can trade 10 lots, again square off at 3. Check out our SPAN calculator. No concept called dealers exposure, the above rule is for everyone. Check out our brokerage calculator and charge list. I have seen 1 crore as the limit however I still want a confirmation on what is the maximum turnover Zerodha allows for a margin transaction. Nishant if you place a limit order to buy at a price higher than the market price, it will get bought at market price immediately.
So in your case if the stock is at It is, but like any industry of skill music, sports, arts etc , only a few people end up being successful. We have similar order types, Check out Bracket orders and Cover orders , we provide higher leverage if you use this. Nithin sir ,thanks for your answer sir.
Sir please tell me if i buy stock in intraday trading and price of the stock falls so much that i cannot sell it without making loss sir and as it has to be square off before 3: So if with 10, you have bought for , you can only convert 10, worth of stocks to CNC.
You can convert if you only have the shares that you sold first in your demat account. Because whatever is sold and if you keep the position overnight has to be delivered to the exchange. Hi, can i buy debt securities and mark a pledge on them for meeting margin requirements after applicable hair-cut for carry forward option sale positions.
What you can do is use Liquid BEes for this, you can check the product note on liquid bees for this. Thanks for the quick reply Nithin. Problem with Liquid bees as margin is that i effectively end up taking a long position on the market — i would ideally like to avoid such risk. How about a reasonably actively traded debt security like Nhai bonds?
If you are trying to sell as CNC, you need to have shares already in your demat account. If you have it and sell it, you can buy back anytime before 3. Do understand that margin of safety would be lower and position exposed to square off if SPAN margin is disturbed. Assume you shorted 10 shares of Reliance in MIS at and stock price went to making you a Rs loss. Hi What is the cutoff time to square off position in MCX on expiry day.
Senthil, check this link. Rajas, whatever is bought or sold as MIS gets squared off as an intraday trade. So you will be still holding 1 lot of DLF in your account. Nishant, what you are talking about is also called Cash Future arbitrage.
If the difference between the stock price and futures price is different from the theoretical price, then this strategy can be employed. So if Reliance is trading at in cash and future trading at , you can buy shares of Reliance and Short 1 lot of Futures. On the expiry day both cash and future will be trading at same time, at that time the idea is to reverse this trade and earn Rs 20 as profit.
Nishant the list is here: Nishant, I guess you are just getting started and suggest you to read something on futures pricing. Nishant, your question is quite broad and I will have to explain you from the basics of pricing on futures.
Check this , you have a link to take a course in intermediate modules called Derivative markets dealer module, read this module up and you will have a better understanding of how futures pricing works. But what I can tell you is that calendar spreads buying one month futures and selling another month futures , might seem like an opportunity, but what you need to understand is that if something seems too easy to earn, the opportunity probably never existed.
This said, we at Zerodha are starting a new online education initiative to help people get started and learn from the basics. Dins, SPAN calculator shows you the margin requirement after taking all the positions. So, if one of your positions is giving you a margin benefit, you get this only after taking the positions.
The other thing is, if you want to execute using basket, ensure that there is extra margin to take care of individual orders, once all positions are taken, the margin blocked will be as on the SPAN calculator.
Hey Ravi, we are adding so many tools that we have decided to dedicate a page completely for that, our technology page http: Hi Nithin, Thanks and yes i saw that.. Currently i could only access it by coming to this blog and then clicking on the link that is provided in the blog. It will be good if you have this shortcut also in the technology page along with other calculators you have there like SPAN, Brokerage Calc etc.
If nifty futures is at , and i buy call option that nifty will remain above , is it possible? Nishant when Nifty is at and you buy a call it will be trading at a minimum of Rs if it is early in the month as much as So if you buy it at say and if Nifty closes at , the will be come and you will end up losing points. Hi nithin, Suppose I am buying 1 lot of nifty of October expiry.
And say the amount is 30K. Sayan, exchange puts a penalty in case the margin in your account drops below the SPAN margin requirement. Viki, if any stock is in T2T category like penny stocks , you are not allowed to trade intraday on them as per exchange compliance requirement.
In cover order calculator under cds future segment it show Margin required Rs 0 when i choose eg: So suppose one has pledged shares worth 1,00, and after haircut the margin amount available is 80, If then one writes an option with margin requirement of 60,, Can that position be carried without adding cash margin or Will it be squared off at 3. For Intraday Equity trading, the Equity calculator page gives only around stocks in that list.
Leverage of 3 to 10 times. So the stocks which are not in the list, can I consider as 1x leverage. I mean I will buy stocks which are not in the list as MIS product type, provided I have sufficient margin in my account to cover for the entire cost of shares. If so what is the interval. When is the last time the scrips updated for the margin it is showing currently. For example, if NSE gives margin around 5x and in zerodha margin page it shows only 3x Is there a chance for this, I dont know, since NSE margin requirement varies every day , will my order gets executed even if I place 5 times the margin I have in my trading account.
Will zerodha platform by itself will check for margins before placing the orders to NSE? In later case 5x may get executed. Zerodha Specific, every brokerage will have a different policy based on their risk tolerance. Changes only at the end of the day, usually a change only if there is tremendous volatility in a stock. As I said, there is nothing called NSE gives margin.
When you buy or sell stocks, NSE will ask for the entire money or entire shares respectively. Because you commit to trade intraday by using our product type as MIS, the brokerage gives you the additional leverage. So for stocks which I have bought under 9x for example, margin amount blocked say , and I dont have any margin left say my margin left is only 50 rs after blockage, If I make a loss in that MIS stock of more than or which one I dont know , will the stock be automatically squared off by zerodha?
Is some team monitoring for this square off or it is done automatically by the system. I know the leverages are calculated based on volatility and there is really a very rare chance I make a loss of more than the margin which got blocked. Still wanted to know what would happen in such case. Our Risk management team monitors this.
I want to do calendar spread in futures in nifty , difference between august and september nifty is 50 and i bought 10 lots of nifty and i expect the price to reduce , suppose price reduced to 48 , my position will get automatically clear on falling of price or i have to do something else?
Your system blocks margin first on pay-in, then on pledge. Due to this, pay-in money is blocked and not available for withdrawal even when margin on pledge is available. My customer ID is: Highlighted this twice to your support staff, but the response is the same.
My experience is that your support staff is only trained to provide standard answers copy-paste , and not to look at exceptions or to forward exceptional queries to knowledgeable people. Let me have this checked, we have just reworked on our collateral margins, so ideally should not happen. On the ledger, the margins that get blocked is on the cash balance. If you view your ledger, you will see a negative balance of Firstly, there was no need to write my name in your response, when I have not mentioned it in my comments.
Client confidentiality should not be taken lightly. Secondly, nothing irritates a client more than highlighting the same thing multiple times and receiving standard responses even after highlighting to the CEO. If you had gone through my specific case, you would have known that: Did have a look at the screenshot. Ideally you should not have faced any issue whilst placing the withdrawal request. While we checked in the test servers, the withdrawal request was going through.
Before the market closes i plan to take this position overnight, now the cash in my account 9k is more than the required compulsory SPAN margin of 8k but less than the required overall margin of 10k. Will i be allowed to convert my intraday position to overnight, with total cash of 9k in my account?
If the position makes further losses does not maintain SPAN requirement then chances are your risk management team will square off my position? Thanks, so this penalty is not applicable if my margin is above SPAN but below total margin rite? And what happens to the funds ,do they reflect in my trading account as soon as i sell stocks. Yes, you can buy and sell using CNC during a day, it will be considered as an intraday trade, yes the funds will be available immediately along with the profits you made or minus the losses you made on the trade.
Hello Nitin, I have a query regarding margin provided. My friend opened a trading account with a broking house, where only margin is required to sell an out of the money NIFTY call. This margin you are talking about must be for intraday, because for overnight position, exchange has set a minimum otherwise which a penalty is levied, immaterial of which broker you trade with. Check our SPAN calculator, to short a call overnight margin requirement is around 24k, so intraday is around 10k.
Yes you are absolutely right. However, I went through the details and observed that there is a difference between zerodha and other brokerage in following scenario: Zerodha charges — 48, Rs total. Note that this is not intraday margin. Is it that they are charging only one way considering that there could be risk at one side only? Kailas, margin required for holding positions overnight is as stipulated by the exchange and there is be a penalty in case it is blocked lesser than what exchange says.
My guess is that you are comparing with what the other broker is charging you for intraday with ours which is for overnight. Just want to ask why the margin for cover order for Futures has been increased recently,it has been doubled for each lot, I really love Zerodha for initiatives like crowd.
Yogesh, which stock are you trading on? We increase margins usually if a particular stock becomes extremely volatile. Most of the stocks like india cement,oriental bank of comm,justdial,crompton,jubfood…they used to show for 1 lot as or justdial it was …now they are showing as , it is almost times you have increased.. Please look into matter as it hampering my trading plan.
Yogesh, you must have mistaken, just double checked margins have not been increased in the last 2 months. Suppose I wanna buy nifty future oct 1 lot I shld have margin of Rs. Now during 10 a. I had only one position i. Once I clear One Of position from above do I immediately need to deposit the margin or how will It go?
Can you please explain In detail. No, you will need atleast 31k to enter the positions as the margin required to enter the first lot is 31k. Yes, if you exit one of the positions in the spread contract, you will need enough margin to hold the other. If not, the positions could get squared off by our RMS team immediately. Also on related trades e. At the beginning of the month: Clearly the margin that I paid initially for shorting CE options in A is completely eroded because of the increase in prices BUT at the same time I have made a lot more money in options for B.
Also volatility for B prices is more. Also, exchange will charge a short margin penalty if you hold position without the minimum SPAN margin in your account.
In many cases the margin requirement is illogical and ridiculously high. Few days back you had invited for feedback from trading community which you will pass on to the stock exchanges — can we give this as a feedback to reduce the margin requirement to logical levels? Yep, we have already sent this to the exchanges.
As you are probably aware, the lot size of Nifty is reducing to 25 by October 31st. I hope NSE will do something soon to reduce these ridiculously high margin requirements. I was not aware of the change in lot size of Nifty.
Will that be split as 2 lots automatically? Also reducing the lot size will only reduce the entry barrier but the cost of trade will still remain high due to high margins rite? Check the circular here: Margins will also automatically drop per lot, as in you will be able to trade 1 lot with around 15k in your account. Yes Nishant, from October 31st onwards.
Check the circular here. I guess the reason for doing this is to improve liquidity, as the margin requirement per lot had gone up quite a bit with Nifty going from odd levels to Margin requirement will basically drop by half, so if you could trade 1 lot with 30k, you will need 15k to trade 1 lot from now.
You can find it on this link. Nishant, check this post on option writing , you will get all your answers. Assuming the above is correct, you had replied to Sukesh on 06 Sep above that automatic square off will happen once available margin falls below the SPAN margin.
Does you SPAN calculator https: And that too this is typically done only by end of the day between 3pm to 3. Typically when big market movements happen, like yesterday, exchange margin requirements go up during the day. This is not captured by the SPAN. I tried keying in the contracts again. The Exposure margin matches exactly.
SPAN still is off by 0. Just saw a very interesting thing — The Exposure market in SPAN calculator matches exactly; within 25 paise; the difference is due to rounding error the Exposure market in the Daily Margin Statement that came on Nov Yes, there are long dated options available for Nifty.
Click here to see the option chain , you can use the drop down on expiry date to choose the expiry. Are the margin requirements that are prescribed by exchanges same for everybody including retail investors, Brokers, FII etc? Please let me know if i can do something like register as a sub broker or something so that my margin requirement for shorting options can go down? As per my logic the margin requirements is somehow proportional to the option premiums.
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