General Trading Chat

[Smart_trade]

Since I posted my reply, i am sorry no question asked, no comments from the members.
But I have 2 queries, that will help me in replying
1. Can NSE ask for a 125% of Span and exposure margin. If yes, then what could be the conditions.
2. Can NSE ask a particular trader, out of lakhs of traders with him on the basis of his trades, to pay excess margin. If yes, then upto what tune and what could be the conditions for such a selection of the trader and such an extra demand of margin. I am asking this query with reference to a small trader like many of us and not big traders.

Answers to your questions :

1) Yes...in case of extreme volatility and in case of last 4 days of contract expiry NSE sometimes levies 100% or 125 % margins. But brokers inform the clients and ask them to pay the margin or reduce the position.

2) NSE or a broker can levy higher margin ( called ad hoc margins ) if he anticipates volatility and possibility of clients defaulting. NSE margins are minimum...broker can charge above that.But fair business practice demands that broker gives opportunity to the trader to bring in additional margin or liquidate the positions..

Smart_trade

 

[Serious_Trader]

Hi Raghuveer
Sorry
If TP has posted it in Zerodha thread, it is not my problem, I am under no obligation to answer it there. And moreover this is not todays case it happened in 2012.
Zerodha has deducted a little less than 6000 R on account of "Being FNO margin penalty charges" as mentioned in ledger page and as per their clarification in email. And they made me understand that this was the penalty charged by NSE being short in margin for my overnight position by using their explanations (that were beyond my understanding at that time.)

And the interesting fact, I was holding only 100 MNF (MiniNiftyFuture) in futures, with a trading balance of more than 40K in my ledger (after this trade and at EOD) And do you know what was the span and exposure margin charged by Zerodha in my account, you will be surprised, it was more than 6.7 lakhs, yes you read it right, more than 670 K for 100 MNF about 125% of the total trade value.

And this is only a part of the story. Ignorant of all this, I sent some 100K on T and T+1 day, for more purchases and all this total money was adjusted by them against the margin of 100 MNF at the open next day itself. And their customer care had no clue/reply, when I contacted them (on phone) on the rejection of my further orders next morning.

I came to know the details of this episode (what I described above) only after 3 days, when Zerodha officials gave a reply. What a fun. :annoyed:

Whatever I have described above is true to best of my remembrance and if you people believe it then it is good and if do not want to believe, then no compulsion. :lol:

Cant post images of email or ledger in open forum, as I have to edit the images particularly real names, ID numbers, part of actual dates, mid part of actual amount etc etc. and even if you people insist, I have no objection to post them. Or if one is determined to see in original, as seeing is believing, then he may contact me at niftyexceltrader@gmail com for further details but he has to promise that he will not reveal the details in open forum

Thanks, I was uncertain, how to retrieve those details from my email huge huge inbox, as I was not sure of date, but your post helped me to start with and I was able to retrieve my emails and my ledger account saved in the folder in my system.

Nice excuse by guiness world Record holder who maximum time banned in TJ.....I am in second position........:lol::clap:

 

[Smart_trade]

Since I posted my reply, i am sorry no question asked, no comments from the members.
But I have 2 queries, that will help me in replying
1. Can NSE ask for a 125% of Span and exposure margin. If yes, then what could be the conditions.
2. Can NSE ask a particular trader, out of lakhs of traders with him on the basis of his trades, to pay excess margin. If yes, then upto what tune and what could be the conditions for such a selection of the trader and such an extra demand of margin. I am asking this query with reference to a small trader like many of us and not big traders.

From your posts it appears that the full story is not revealed....the brokers cannot charge such wrong penalties as they are under strict SEBI control.If NSE charges penalty to them because of your account then they are fully justified in passing on these penalties to you.

Smart_trade

 

[niftyexceltrader]

From your posts it appears that the full story is not revealed....the brokers cannot charge such wrong penalties as they are under strict SEBI control.If NSE charges penalty to them because of your account then they are fully justified in passing on these penalties to you.

Smart_trade

No, sir
I havnt hide anything. On that day (at EOD) I have 100 MNF long and some buy positions in Nifty call options. As call options were fully paid so no question of asking for any extra margin. Rest I have described in my post, truly and havnt hide anything. I can assure you this much.

 

[niftyexceltrader]

From your posts it appears that the full story is not revealed....the brokers cannot charge such wrong penalties as they are under strict SEBI control.If NSE charges penalty to them because of your account then they are fully justified in passing on these penalties to you.

Smart_trade

Thats what i want to know, why NSE would charge a penalty on my account, when I have paid necessary span and exposure margin and a good balance at EOD, then no question of any sort of anomaly involves. The trade was done in the middle of month, so no question of expiry volatility

 

[sudoku1]

Nice excuse by guiness world Record holder who maximum time banned in TJ.....I am in second position........:lol::clap:

wat is d expiry date of d ID SERIOUS TRADER ?

 

[XRAY27]

Guys !! new series from today let us go with our trading plan and killing out EGF ..wishing all good luck for this May series :clapping:

Good trade and Bad trade

Good trade is taken with confidence and adhering to trading method,bad trade is taken on an opinion

Good trade is taken with maximum stress on position size..bad trade is taken to get back losses

Good trade is taken with in contest of trading plan ,bad trade is taken with fear of missing out or ego to prove that "i'm always right" or greed to gain quick bucks

 

[Serious_Trader]

wat is d expiry date of d ID SERIOUS TRADER ?

Fight in TJ confirmed banned................but fight in las Vegas confirmed Moneyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy ........:lol:

 

[timepass]

Since I posted my reply, i am sorry no question asked, no comments from the members.
But I have 2 queries, that will help me in replying
1. Can NSE ask for a 125% of Span and exposure margin. If yes, then what could be the conditions.
2. Can NSE ask a particular trader, out of lakhs of traders with him on the basis of his trades, to pay excess margin. If yes, then upto what tune and what could be the conditions for such a selection of the trader and such an extra demand of margin. I am asking this query with reference to a small trader like many of us and not big traders.

From your posts it appears that the full story is not revealed....the brokers cannot charge such wrong penalties as they are under strict SEBI control.If NSE charges penalty to them because of your account then they are fully justified in passing on these penalties to you.

Smart_trade

No, sir
I havnt hide anything. On that day (at EOD) I have 100 MNF long and some buy positions in Nifty call options. As call options were fully paid so no question of asking for any extra margin. Rest I have described in my post, truly and havnt hide anything. I can assure you this much.

ST is right. SEBI must be having some provisions regarding this, and the brokers have to abide by these provisions. So I request you to take it up further with zerodha and sebi. Let no wrongdoing go unaddressed.

 

[niftyexceltrader]

Perhaps you are still not believing what I wrote OR may be I havnt presented my case properly. Why NSE will choose specifically me, a very small trader having only 100 MNF, as overnight future position.
Anyway it will be better, if we do not discuss this topic now, during trading time. Lets defer for the evening discussion.