Zerodha....

[grv_1900]

Re: IOC order

Hey thanks Gaurav,

IOC is immediate or cancel..

You don't need an IOC in a market order because when you put a market order all the 100 lots get bought at whatever price...

IOC can be used by higher volume traders, so for eg if you put an IOC order for 100 lots to buy nifty at 5810, it will buy whatever upto 100 lots available at 5810, and the pending will get cancelled immediately...

Usually a lot of traders don't want to follow the price up on a breakout and down on a breakdown.. so if you feel that 5810 is breaking out, you put a 100 lot buy in IOC at 5810 and this way you make sure that you are not chasing the price up....

Hopefully I didn't confuse you more... .. Cheers

Thanks for prompt reply..very much appreciated:thumb:

 

[Zerodha]

If I am correct, previously you have said that it will be paid by you from the margin money with you. I feel that is correct approach as a single window operation ie everything through you. As we abroad for quite some time, what will happen if we can't pay it, as we can't see the bill sitting abroad.

Yes we had initially planned the same, but we got a notice from the exchange saying we can't collect amc on behalf of ILFS.... There will be enough time given, you can also pay the amc upfront and you will not receive any bills...

Cheers...

 

[Zerodha]

Hi Zerodha....plz explain

For now, we are letting you use your stock as margin only for the intraday positions... So if you have 500 reliance, after putting the exchange haircut % you will get margin to trade intraday in futures and options(both stock and index).

Don't have the haircut on reliance but say if it is 30%, you will get 70% of 500 shares ( say reliance at 1000 rs) , so 70% of 5lks, 3.5lks to trade intraday futures... With Rs 11000 you can buy 1 lot of nifty futures for intraday and hence around 33 lots on nifty and similarly for all the other stock or index futures.

..

Below i jst post th Span/Exposure margin status of REL on 1st April

Symbol	       Mlot	SpMgn%	ExpMgn%	TotMgn%	SpMgnPerShare	ExpMgnPerShr	TotMgnPerShr	SpMgnPerLt	ExpMgnPerLt	TotMgnPerLt
RELIANCE	250	10.84	5	15.84	113.2	        52.17	       165.37	          28300  	 13042.5	 41342.5

Regarding with above the Total Margin is @15.70%
The Span Margin for whole lot varies from Rs.28200 to Rs.28300

With above info i wanna to ask.......
As per yur assurence we need only half of span margin........
Means to trade Intraday in 1LOT of Reliance i need only Rs 14500...as it is half of of span margin.......is it right?

So with 500 Equity in my a/c.....can i go for
1) Buy around 34 to 35 LOTS of REL for intraday......(500000/14500=34.48)
2) Sell around 34 to 35 LOTS of REL for intraday......(500000/14500=34.48)
(Assuming Rs1000 price per share of REL)

I hav to use above....
1) Buy Strategy when price is rising(Mrkt is moving up)......booking profit while selling at desired high price.
2) Sell strategy when price is lowering(Mrkt is moving down).....so by hedging the asset and sqrng it off by buying agn th same contract, at desired/predetermined low level.

And if in case i wanna to carry the position overnight then i might be able to carry only 12LOTS ...i.e. 500000/41000=12.19....m i right?

In short any how in above both scenario........i wanna to earn by intrady...against my 2 LOTS....hedging it......and to increase the asset from evryday profit.

Plz correct/guide me...

Thanks.......

Hi, Firstly before you get margins to trade in futures the applicable haircut has to be applied in accordance with the exchange...

For reliance the haircut is around 20% and can go up when markets get volatile...

So with Rs 5lks of Reliance, once the haircut is applied(20%), you will have Rs 4lks that can be used as margin... To trade futures intraday, margin required is 50% of SPAN margin, but it can go up as and when the markets get volatile....

Now exchange also says that you can't have only stocks as margin, there should be securities to cash ratio of 2:1 atleast... So basically if you are using 4lks of your reliance as margin, you need to have Rs 2lk in your account as cash also...

So, if you setup a scenario like above , with 15000 as intraday margin , you can buy 40 lots of reliance future.... Now another thing is, presently you can't use stocks as margin for overnight positions, you will have to hold reliance only to the extent your 2lks in cash will let you hold... At 40k for total margin on reliance, you can hold 5 lots for overnight position...

Hopefully this clarifies...

 

[Zerodha]

Do you allow intraday short selling for stocks. Is the 10X margin available for short selling?

For option writing: Can you give guidance in average %age required : For intraday & for overnight. (May not be exact, but rough estimations would do)

Yes we allow intraday short selling of stocks and the 10X multiple is available....

For option writing, visit discussion section on our facebook page , we are trying to update the margin required for writing options on that page as and when it changes , otherwise for you to get an idea, when nifty was at 5500 and with 10 days left to expiry the margins required were:

For intraday:


NIFTY11MAR5100PE 6676.88
NIFTY11MAR5200PE 6862.46
NIFTY11MAR5300PE 7230.37
NIFTY11MAR5400PE 7830.92
NIFTY11MAR5500PE 9090.95
NIFTY11MAR5600PE 10950.38
NIFTY11MAR5700PE 13051.55
NIFTY11MAR5700CE 6633.11
NIFTY11MAR5600CE 6846.72
NIFTY11MAR5500CE 7432.22
NIFTY11MAR5400CE 8514.02
NIFTY11MAR5300CE 10470.91
NIFTY11MAR5200CE 12490.92

For Overnight:


NIFTY11MAR5100PE 16709.75
NIFTY11MAR5200PE 17172.42
NIFTY11MAR5300PE 18090.4
NIFTY11MAR5400PE 19589.08
NIFTY11MAR5500PE 22735.85
NIFTY11MAR5600PE 27381.88
NIFTY11MAR5700PE 32628.05
NIFTY11MAR5700CE 16601.83
NIFTY11MAR5600CE 17137.72
NIFTY11MAR5500CE 18604.92
NIFTY11MAR5400CE 21313.55
NIFTY11MAR5300CE 26208.7
NIFTY11MAR5200CE 31259.62

 

[horoguru]

What is your facebook and twitter address. Please put a link on your website for easy access.

 

[Zerodha]

What is your facebook and twitter address. Please put a link on your website for easy access.

The link is available on our website at the bottom of the page.. .click on the facebook image and it will take you to our page...

 

[newbie12345]

Alright, a followup to the noob question -
When we look at days to expiry while calculating option premium, I noticed that when we take weekends into consideration, it gives a higher/lower value than the currently trading value. Course, one does understand that it could be trading at a premium or discount.
But when I did exclude the weekends which eventually reduced the number of days to expiry, the value did appear pretty close to the currently trading value on NSE.

Another question -
When I short equities, how long can I hold on to my short position if I have sufficient funds in my account?
Lets say, I short 100 shares of company X which is currently trading at Rs.100, and I have about Rs.30,000 with Zerodha. Would my holding go into auction the next day or would I be able to cling on to it for as long as I wish, or would NSE regulators come waving a big danda and make me yield?

Thanks in advance...

 

[babji1966]

Hai sachin

i sent my forms on thursday. I hope they reached to ur office what next? Pls inform..
M.vijaya kumari.

 

[Zerodha]

Alright, a followup to the noob question -
When we look at days to expiry while calculating option premium, I noticed that when we take weekends into consideration, it gives a higher/lower value than the currently trading value. Course, one does understand that it could be trading at a premium or discount.
But when I did exclude the weekends which eventually reduced the number of days to expiry, the value did appear pretty close to the currently trading value on NSE.

Another question -
When I short equities, how long can I hold on to my short position if I have sufficient funds in my account?
Lets say, I short 100 shares of company X which is currently trading at Rs.100, and I have about Rs.30,000 with Zerodha. Would my holding go into auction the next day or would I be able to cling on to it for as long as I wish, or would NSE regulators come waving a big danda and make me yield?

Thanks in advance...

Yes Newbie, while calculating time value of options, it is best to consider only working days...

Short position in equity can be held only intraday if you don't hold the underlying quantity of the stock you have sold... If you hold it overnight and there is no stock to deliver, it will go to auction on T+2 ... At Zerodha, we won't let you carry short equity position overnight without you holding the actual stock...

Cheers...

 

[Zerodha]

Hai sachin

i sent my forms on thursday. I hope they reached to ur office what next? Pls inform..
M.vijaya kumari.

We haven't received it yet, you will receive a call as soon as we have it here...