Ravi,
I guess we had tried to reason out on why we squared off your position at 2.50 and not 3.20pm. You had written deep in the money call option and you were using the premium received to write even more.
Since the market was going up fast, our RMS team had to square off a small position and the rest of it was squared off by you by 3.20pm I guess. The reason I guess you were pissed was because our RMS policy document didn't mention that we can square your position anytime during the day.
The email which was sent it to him was explaining that the RMS policy now includes the statement that positions can be squared off any time during the day if there is no sufficient margin and we won't wait till 3.20pm for that .
I guess we were being courteous and hence the following email was sent,
"Firstly let me apologize for the inconvenience caused to you due the the lack of clarity in our margin policies,
You will find our margin policy document in the link provided here.
Two clarifications,
a) We will be unable to give premium benefit received from writing options
b) Positions can be squared off at any time whilst there is insufficient margin in the account
In lieu of the discomfort caused to you by the lack of clarity in our RMS document we would like to extend the next 100 of your trades at Zerodha brokerage free.
This definitely does not make up for the issues that have occurred already but henceforth we hope our revised policy document will give you elevated clarity on our margin policies.
I would also like to humbly request you to refrain or reverse the comments on blogs and Social media.
We are a company started by traders at prices that facilitate other traders to function, we do 0 marketing and the only way we hope to grow is through word of mouth ......"
@everyone,
Don't want to get into specifics of how much position, but by writing deep in the money options there was a huge position taken on short calls and nifty was bouncing more than 4% and hence we had cut just a small portion..Ravi himself cut the rest in 10 mins after we did.
Phew!!!I don't know how many brokers would have taken this much effort for squaring a small portion of the position the client held because of lack of adequate margin.
@Ravi, Let us know if you want to talk about it, writing deep in the money options with a higher leverage, pocketing the premium and writing more, is something that an RMS team of any brokerage business can't let happen, you will be taking unlimited risk on behalf of the brokerage.
I know you have traded across the world, but the way option writing margins are blocked in India by exchanges differs from how it is blocked in the US.
I guess we had tried to reason out on why we squared off your position at 2.50 and not 3.20pm. You had written deep in the money call option and you were using the premium received to write even more.
Since the market was going up fast, our RMS team had to square off a small position and the rest of it was squared off by you by 3.20pm I guess. The reason I guess you were pissed was because our RMS policy document didn't mention that we can square your position anytime during the day.
The email which was sent it to him was explaining that the RMS policy now includes the statement that positions can be squared off any time during the day if there is no sufficient margin and we won't wait till 3.20pm for that .
I guess we were being courteous and hence the following email was sent,
"Firstly let me apologize for the inconvenience caused to you due the the lack of clarity in our margin policies,
You will find our margin policy document in the link provided here.
Two clarifications,
a) We will be unable to give premium benefit received from writing options
b) Positions can be squared off at any time whilst there is insufficient margin in the account
In lieu of the discomfort caused to you by the lack of clarity in our RMS document we would like to extend the next 100 of your trades at Zerodha brokerage free.
This definitely does not make up for the issues that have occurred already but henceforth we hope our revised policy document will give you elevated clarity on our margin policies.
I would also like to humbly request you to refrain or reverse the comments on blogs and Social media.
We are a company started by traders at prices that facilitate other traders to function, we do 0 marketing and the only way we hope to grow is through word of mouth ......"
@everyone,
Don't want to get into specifics of how much position, but by writing deep in the money options there was a huge position taken on short calls and nifty was bouncing more than 4% and hence we had cut just a small portion..Ravi himself cut the rest in 10 mins after we did.
Phew!!!I don't know how many brokers would have taken this much effort for squaring a small portion of the position the client held because of lack of adequate margin.
@Ravi, Let us know if you want to talk about it, writing deep in the money options with a higher leverage, pocketing the premium and writing more, is something that an RMS team of any brokerage business can't let happen, you will be taking unlimited risk on behalf of the brokerage.
I know you have traded across the world, but the way option writing margins are blocked in India by exchanges differs from how it is blocked in the US.
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