How will peak margin affect margins for Hedge Positions?
Customers today enjoy the benefit of margin if the trades are hedged. Going forward if you square off the hedge position then it is important to square off the leg of the transaction which has higher margin requirements first. If this sequence is not followed, your peak margin requirement may shoot up and if sufficient margin is not available, it may lead to a penalty which has to be borne by you.
E.g. You have only Rs.50000 as an available margin. Now you buy 1 Lot of NIFTY 13000 CE @ Rs.20 and then sell 1 lot of NIFTY 13200 CE; then margin requirement for 13200 NIFTY CE will only be approx. Rs.25000 to Rs.30000. Now you square off NIFTY 13000 CE, and the margin requirement for NIFTY 13200 CE will increase to Rs.1,35,000. Since you only have Rs.50000 as margin this will lead to a shortfall and attract a penalty.
How will peak margin affect my margins for trading in the derivatives segment?
For Intraday:- Maximum intraday exposure in the derivative segment will be restricted to 1X. Hedge Margin Trades: Customers used to enjoy the benefit of margin if the trades are hedged. Now, however, if clients square off the hedge position then ...
How will peak margin affect my margins for trading in the Cash Segment?
For intraday: Intraday exposures will now be restricted to max 5X. Currently, we offer up to 6.6666 X on some category of stocks but post-Sept 1 maximum exposure will be restricted to 5X. For Delivery sell: Currently, we release 100% of Sell value ...
What is Peak Margin?
Peak Margin is the minimum margin that MUST be collected by brokers from their clients in advance of placing any intraday / delivery order in the Cash and derivatives segment. Clearing corporations will randomly take 4 snapshots at predefined time ...
Do I have to bear a penalty in case of margin shortfall?
Yes, if margin shortfall is due to insufficient margins resulting from position taken against 80% margin released against sell and such sell position is subsequently bought back. Further, the penalty will also be applicable in case of derivatives ...
Will I get margin benefit immediately after I sell my stock?
You may get the benefit of shares sold on T-day (i.e. instantly on the same day of trading) under the following circumstances. Shares lying in Client Unpaid Securities Account (CUSA). This normally happens if you sell shares which are purchased in ...