Zerodha....

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PGDIMES

PGDIMES

Well-Known Member
#141
#141
Re: new cheapest broker is here. Zerodha

zerodhaonline said:
Zerodha is the most Options friendly broker in the country now, and we are proud to say that we have changed the game as far as options trading is concerned. We charge the lowest brokerage and we actually give our clients an opportunity to win.
For hedged options positions, the margins are far lower with Zerodha. The whole idea of a hedge is lower risk, so the margins will be lower. :)
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Will you provide an illustration to make us understand the margin blocked by you for short positions in straddle/strangle or any other option strategy of your choice?
 
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MaxX

Well-Known Member
#142
#142
Re: new cheapest broker is here. Zerodha

zerodhaonline said:
For calendar spreads on options, the margin requirement would be only for 1 leg(for eg: if you buy this month 6200 call and short next month 6200 call, margin blocked would be only for the short call position.).. For butterflies and other such similar strategies, we know the importance of lesser margin being blocked. The NOW platform and many other platforms, don't recognize these strategies, in terms of reduction of margins for completely hedged positions. WE are trying different ways where we can have our traders using these option strategies get the benefit of lesser margin requirement. For intraday positions, margin requirement for option writing strategies is anways only 50% of the span margin... We are trying ways in which we can pass this benefit on to overnight positions for completely hedged positions, which can be recognized by the NOW platform. If we can solve the puzzle, we will be the only online brokers who will be providing the facility... Any feedback and ideas from other option traders will be of help here..
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Yes, excessive margin for hedged positions is a big issue. For calendar spreads on the NSE site, http://www.nseindia.com/content/nsccl/nsccl_fospan.htm#4 they talk about using the delta of the position for calculating margin, but in reality nothing like this is done and margin for short position is taken like a naked position. Also the margin sheets show a 'spread margin' of only 1% for nifty. Maybe you could interface with them to make it happen in reality for options :)
 
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Zerodha

Zerodha

Well-Known Member
#143
#143
Re: new cheapest broker is here. Zerodha

@PGDIMES, At Zerodha all our traders need to bring in only 50% of SPAN margin for intraday short positions in any option. So basically if you want to Short Straddle or Short strangle, with around 20000 in your account you can get into 1 lot of short calls and short puts... If you in turn can hedge it by buying the out of money calls and puts for big range movements, ideally you would locking in your risk. We as brokers understand it, but unfortunately trading platforms in India don't recognize this. What we are trying to do is find a way out where the platform can recognize scenarios like mentioned above and also pass on the margin benefits due to fixed risk.... For now, for all the calendar spreads according to exchange compliance a client would have to bring in margin only one side... For all the other option strategies, for now the margin required is only 50% of span for intraday and the next day you can use the premium received for taking more positions.. To place orders for such positions we have a spread order window on the NOW trading platform.. Cheers... Bharat...
 
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vikas3445

New Member
#144
#144
Re: new cheapest broker is here. Zerodha

early i was trading with aaditya birla...
their brokerage is like dis...
0.12% for intraday (including 0.05% one side and nearly 0.02% for all hidden and other charges) and minimum brokerage of RS- 50 per day..
i used to trade with a maximum amount of RS-25,000 ..
then brokerage will be 0.12*250=30.00..
but they charges me RS-50 as minimum brokerage..
so i have to generate 20 paise profit for every 100 rupees ..then only i can pay the 50 rupees minimum brokerage (0.20*250= 50)......
after dat i have to generate my profit...
At dis condition can i trade more profitably with any other broker????
plzz reply...i am struggling..
 
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MaxX

Well-Known Member
#145
#145
Re: new cheapest broker is here. Zerodha

zerodhaonline said:
@PGDIMES, At Zerodha all our traders need to bring in only 50% of SPAN margin for intraday short positions in any option. So basically if you want to Short Straddle or Short strangle, with around 20000 in your account you can get into 1 lot of short calls and short puts... If you in turn can hedge it by buying the out of money calls and puts for big range movements, ideally you would locking in your risk. We as brokers understand it, but unfortunately trading platforms in India don't recognize this. What we are trying to do is find a way out where the platform can recognize scenarios like mentioned above and also pass on the margin benefits due to fixed risk.... For now, for all the calendar spreads according to exchange compliance a client would have to bring in margin only one side... For all the other option strategies, for now the margin required is only 50% of span for intraday and the next day you can use the premium received for taking more positions.. To place orders for such positions we have a spread order window on the NOW trading platform.. Cheers... Bharat...
Click to expand...
The margin on only one side for calendar spread makes sense for futures.. but in options the long side anyway has no margin!
 
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lotmanythings

Member
#148
#148
Re: new cheapest broker is here. Zerodha

I am sorry to say that the site has too many bugs it should have undergone explicit testing before being launched. Such things make a really bad impression.
First of all we can't even get to the application form(the link is broken)
then I went to this page directly http://zerodha.com/main/form/
and that form is not upto standards too.
Anyway when I submit that it says your form has been submitted and the download button gives an fdf file which is a matlab script. How on earth am I supposed to view this.
Kindly correct all these errors.
 
Zerodha

Zerodha

Well-Known Member
#149
#149
Re: new cheapest broker is here. Zerodha

We are still not opening accounts using the online application form. It is still in a Beta version. The way we are opening account now is: We send courier of the application form or else if you can leave your email id, we can send across the soft copy of the application form. We should have the online application form ready at the earliest. The reason for the delay was because, we were trying an innovative way of also being able to attach all the requisite documents along with the online application form. This has been taking us time as we need exchange approval for doing anything in this regard. Cheers ...
 
Zerodha

Zerodha

Well-Known Member
#150
#150
Re: new cheapest broker is here. Zerodha

Hi Vikas,

With us there is no minimum brokerage. You pay for what and when you trade. At Zerodha we have 2 plans
PLAN A: 20 Rs / executed order for cash(intraday), cash(delivery), futures and options. You can buy and sell as much as you want for Rs 20.
PLAN B: If your cash volumes are not much, by default we give you 0.01%for intraday and 0.1% for delivery. For F&O, the plan would be Rs20/executed order.

For both the above plans, there is no minimum brokerage,no turnover limit, no upfront brokerage, you pay only when you trade.

Cheers..
 
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