Zerodha....

[startrade]

Zerodha I have printed form sent by you to my mail... I want help for filling the form. How can I get it?

Call them at the numbers given on their website (080-41302020) on a working day.

Make a list of your questions before making the call. That is what I did when I had a few queries at the time of account opening.

 

[Zerodha]

Hopefully this part would answer to the many queries as to why suddenly Zerodha changed the margin to 40% of Total and again changes back to 50% of Span.
Zerodha looks like trying to make sure that their hands will not get burnt unnecessarily when the clients are not handling the volatility correctly

Now my query to you Zerodha would be as to how would you handle bigger news and falls. One can never say that it will never happen. But I am sure you would have thought about such bad/worse/more worse scenarios!
(Well if you are fine with giving out more details about your margin exposure handling )

Hi Pumajay,

What would surprise a lot of our competitors is Zerodha's margin utilization levels...Even when markets recently had gone all the way to 5100 in Feb, which is a decent 20% fall from the top..... Our margin utilization had not gone above 25% whereas most of the brokers were in the range of 60% to 80%... The smaller ones would be around 80%... At 90% exchange blocks the terminals.... Don't know if a retail trader would understand the importance of this, but it is a very sweet spot for us to be on...

This is basically puts us in a very safe spot as far as market crashes are concerned... Secondly, the reason we increased the margins to 40% of total is because as you rightly guessed for the risk management...Market falls of 5 to 10% don't happen intraday, it typically happens on overnight position... This we are covered for because we block complete margins for overnight positions... Intraday falls historically are in the range of 1 to 5% on index, and we wanted to be covered for it...

Cheers...

 

[Zerodha]

Zerodha, I have one question. On the last day of expiry, I always receive SMS that close your position before 3:30 to avoid getting excess charged (something of that sort).
I have never exercised option yet so my question is what type of extra charge is charged either by zerodha or taxes etc for excercising options?

For all option buying positions which gets exercised, the STT is 0.125% of the contract otherwise it is 0.017% of the premium.... So assume you buy 1 lot of 5500 call and market is at 5510, just before expiry if you sell the option in the market, you might get 10 rs for this option and you pay stt of 0.017% of Rs 500( 50 *10)... But assume, you didn't sell this option in the market and market closes at 5510, you still make Rs 10 on the option, but your STT now would be 0.125% of 5510*50( 275000) around Rs 300....

A lot of people do this mistake on expiry day, when suddenly they see a big loss on their options, instead of booking that loss they shut the systems down and walkout... If you hold 10 lots and you do this, you might loose 3k extra in terms of STT only....

Cheers...

 

[Zerodha]

Zerodha I have printed form sent by you to my mail... I want help for filling the form. How can I get it?

Call us up or else send an email with the best time to call you up....

 

[jyotixxx]

For all option buying positions which gets exercised, the STT is 0.125% of the contract otherwise it is 0.017% of the premium.... So assume you buy 1 lot of 5500 call and market is at 5510, just before expiry if you sell the option in the market, you might get 10 rs for this option and you pay stt of 0.017% of Rs 500( 50 *10)... But assume, you didn't sell this option in the market and market closes at 5510, you still make Rs 10 on the option, but your STT now would be 0.125% of 5510*50( 275000) around Rs 300....

A lot of people do this mistake on expiry day, when suddenly they see a big loss on their options, instead of booking that loss they shut the systems down and walkout... If you hold 10 lots and you do this, you might loose 3k extra in terms of STT only....

Cheers...

but i believe for a shorted option it doesnot matter....if you sold a lot of nifty and you are in profit you should let it expire ..u save brokerage and stt also....if wrong point out plz

 

[Zerodha]

but i believe for a shorted option it doesnot matter....if you sold a lot of nifty and you are in profit you should let it expire ..u save brokerage and stt also....if wrong point out plz

STT is charged only on the selling side... When you have shorted, you have already paid the STT and hence doesn't matter... ...

 

[jyotixxx]

STT is charged only on the selling side... When you have shorted, you have already paid the STT and hence doesn't matter... ...

and wht abt broerage?

 

[dsk70]

1..intraday futures nifty 40% of total margins(presently).. So around 12 to 13k...

2. Brokerage is 20 Rs/executed order, you can buy or sell as much as you want.. if you do 3 lots brokerage is 40(20 buyin and 20 selling).... With all charges the breakeven for 3 lots is around 2points for futures and 0.4 points for options...

3. Between 3 to 3.10

4. Trading account in 24 hours time...Bank accounts are hdfc, axis for instant transfers... All other banks for NEFT and RTGS... Our icici bank account should also be up in a few more days...

Hello Zerodha,
So, by when the ICICI Bank account should be up ? does it mean that instant transfer from ICICI Bank account should be possible ? (Tentative timeline 1week/1 month or ??)

 

[jyotixxx]

So, by when the ICICI Bank account should be up ? does it mean that instant transfer from ICICI Bank account should be possible ? (Tentative timeline 1week/1 month or ??)

waitin since dec 10.....all them say very soon...

 

[manoharpillai]

I would like to know what is the total amount charged for one lot of nifty option i.e if i buy a call option 5500 at 100 sell it at 120 my gross profit is 1000. I would like to know what is the end amount (net profit) i get after brokerage with added charges i will get.