Zerodha....

[Zerodha]

hi zerodha,

For calender spread in futures, i came to know that you block 1 side margin.

Say for nifty its approx 30K...for current and next month future spread.

But always the spread value ranges between 5 to 15 nifty pts only..which costs around 250rs to 750 rs per lot...Then why should you block such a huge amount of 30k per lot?

Please see the following exaples:

I buy Nifty Jun/July spread @ 10... which costs only 500 Rs and we know that the nifty Futures price difference between current and next month contract is not going to go out of control (say 100 pts).

Even if the diff is 100 pts.. the guy who bought spread is obligated to give only 100*50 = 5000rs... Still 30k per spread is too much, i guess...

Can you please review the margin for atleast nifty spreads first and try to reduce after discussing with Risk Management Team???

If you could do that then we can see lot of crowd there as the return to risk ratio will be good.... *Think again* + you wil get more brokerage also as lot of ppl wil participate....

Like how you have created revolution in OPTIONS trading.. you can do the same in spread trading also for mutual benefit...

Request you to consider this seriously...and try to make some progress...


Thanks,
...summasumma

Hi Summa,

These rules unfortunately is not under our control, these are policies set by the exchange...

We would have loved to give such margin benefits to our clients if NSE was allowing it....NSE will block 30k for the spread, if we let you trade at 10k, Zerodha has to put up 20k on your behalf for that spread...Someone has to put up that money, NSE will not budge on any of their risk management policies....

A lot of option strategies don't really require as much margin as it is getting blocked today... But We have to because NSE is our big DADDY... ....

 

[summasumma]

Hi Summa,

These rules unfortunately is not under our control, these are policies set by the exchange...

We would have loved to give such margin benefits to our clients if NSE was allowing it....NSE will block 30k for the spread, if we let you trade at 10k, Zerodha has to put up 20k on your behalf for that spread...Someone has to put up that money, NSE will not budge on any of their risk management policies....

A lot of option strategies don't really require as much margin as it is getting blocked today... But We have to because NSE is our big DADDY... ....

What-if i can show some good transactions everyday in spread? Still its not possible to reduce?

Because i know some brokers will reduce the required margin provided the customer is showing some big transactions everyday? how is that possible? can you explain?

Thanks,
...summasumma

 

[Zerodha]

I want a clarification from Zerodha --- is stt applicable on intraday trades ?
A recent article in Economics Times says that STT is not to be paid to broker if ur trade is intraday.
If 100 shares of ICICI Bank are bought and sold (intraday) what should be their brokerage and other charges.
I hope Zerodha people will answer it the way the law prescribes.

STT not on Intraday trades??? :clap::clap::clap::clap::clap::clap:

You telling itself is making me so happy.... ....

Kidding Enkay...

STT unfortunately is that burden all of us have to bear for hmmmm..... I don't know why... ... or let me see, because those people sitting on long term positions don't want to pay any capital gains tax... The issue is people who are involved in decision making and the people who sponsor decision making are impacted more by the long term capital gain tax rather than STT and also that STT is guaranteed money for the govt from the capital markets....

STT for intraday equity: 0.025% on sell side...
STT for delivery equity: 0.125% on both buy and sell

For f&o : 0.017% on Sell Side both intraday and positional....

 

[enkaysharma]

Read (or arrange)Economics Times New DelhiEdition Pull out spplement 'Investors Guide' and ask those people
Their channel is ETNOW

 

[Zerodha]

What-if i can show some good transactions everyday in spread? Still its not possible to reduce?

Because i know some brokers will reduce the required margin provided the customer is showing some big transactions everyday? how is that possible? can you explain?

Thanks,
...summasumma

How much do you pay on a big transaction with us??? Rs 20??? ....

Today the success of our model is because of the fact that we have uniform rules for all our clients... A person does 20 cr turnover a day or 1lk, the rules are all the same....

The guys who work on % basis are always trying to get you to trade bigger because in this environment of diminishing brokerages the only way they can make money is by you taking bigger positions....

So if I am charing you 0.02% and you trade for 1 cr a day trading this spread with say 4 lots 4 times a day, you have made him Rs 2000.... The extra money he had to put up on your behalf is probably Rs 70000 for the day... The return was??? 3% for 1 day... Why would they not do it??? And you probably will keep doing it everyday, you become like a cash cow for him... ??

...

 

[Zerodha]

Read (or arrange)Economics Times New DelhiEdition Pull out spplement 'Investors Guide' and ask those people
Their channel is ETNOW

Hey enkay, you must have misread the article, if you have that article, please scan it and post it on this thread or give us the link for the same online....

I can't search for something when I know it is nothing...

Hey don't mind me having a little bit of fun...

Cheers...

 

[enkaysharma]

Sure Sir
I will definitely scan and post it to u

What I believe is if they write which is incorrect their group should not mislead people

 

[enkaysharma]

Anyways,
Just let me know what would be ur brokerage if I buy 1000 shares of ICICI Bank in intraday.
I am sure u will give breakup.

 

[dsk70]

1. icici setup on NOW gateway was anyways not in our control. Icici and NSE have been at loggerheads for a certain issue which is spilling over to this....

2. Yes a joint a/c can be linked as long as the trading account holder is either one of the joint account holders...

Hi Zerodha,

Thanks, But W.r.t. ICICI Bank setup, my point was related to the workaround you were planning (which you mentioned in this forum Couple of days back).

So when you setup a payment gateway in Back-office, does it mean that the ICICI Workaround stands cancelled ?

 

[enkaysharma]

Sir,
Humbly I request u to give me breakup of my query.

I wish to see ur hidden charges.
Regards