Hi
My basic question, "Is FNO margin calculated only on Ledger Balance?". Or, "Is F&O margin is supported by DP holdings credit in addition to Ledger Balance?" The long story details are given.
I opened an account with HSBC InvestDirect about 5 months ago for Equity and F&O trading. I have this strange experience with margin calls from the bank frequently. I have spoken to customer service for the past 10 days but no one is able to explain to me what the system is actually displaying the 'Current Available funds' which the help menu gives an explanation as the 'margin' available to client for further trades.
Here is the situation. At the market opens, the system shows sufficient 'Current Available funds'. 'Current Available Funds' consists of margin from ledger balance, margin credit from my DP holdings and few other minor credits on receivable holdings, ben pool credit, etc.. I place few equity or F&O orders well within the margin given to me under 'Current Available Funds'.
After market closure, I check the system in which entire 'DP Holdings' disappears. Bank informs me this is a routine procedure to synchronise the customer DP holdings with CDSL in the backend and will be restored correctly in the morning. Before the market opens, the system calculates my margin. As my entire DP Holdings vanished overnight, system calculates margin only based on Ledger Balance which is far less than the total margin credit given to me. So it triggers an automated email that my account is in negative margin and so I should move funds immediately.
After market opening hours, I login and find my 'DP holdings' are restored and 'Current Available Funds' is a very positive number. If I call up customer service, they go by the overnight margin report which shows negative margin. They threaten all positions will be liquidated if I do not fill in the margin gap as reported by night report. So I end up depositing additional money to avoid liquidation and penalty.
My basic question, "Is FNO margin calculated only on Ledger Balance?". Or, "Is F&O margin is supported by DP holdings credit in addition to Ledger Balance?"
Regards
Subra (LondonVisitor)
My basic question, "Is FNO margin calculated only on Ledger Balance?". Or, "Is F&O margin is supported by DP holdings credit in addition to Ledger Balance?" The long story details are given.
I opened an account with HSBC InvestDirect about 5 months ago for Equity and F&O trading. I have this strange experience with margin calls from the bank frequently. I have spoken to customer service for the past 10 days but no one is able to explain to me what the system is actually displaying the 'Current Available funds' which the help menu gives an explanation as the 'margin' available to client for further trades.
Here is the situation. At the market opens, the system shows sufficient 'Current Available funds'. 'Current Available Funds' consists of margin from ledger balance, margin credit from my DP holdings and few other minor credits on receivable holdings, ben pool credit, etc.. I place few equity or F&O orders well within the margin given to me under 'Current Available Funds'.
After market closure, I check the system in which entire 'DP Holdings' disappears. Bank informs me this is a routine procedure to synchronise the customer DP holdings with CDSL in the backend and will be restored correctly in the morning. Before the market opens, the system calculates my margin. As my entire DP Holdings vanished overnight, system calculates margin only based on Ledger Balance which is far less than the total margin credit given to me. So it triggers an automated email that my account is in negative margin and so I should move funds immediately.
After market opening hours, I login and find my 'DP holdings' are restored and 'Current Available Funds' is a very positive number. If I call up customer service, they go by the overnight margin report which shows negative margin. They threaten all positions will be liquidated if I do not fill in the margin gap as reported by night report. So I end up depositing additional money to avoid liquidation and penalty.
My basic question, "Is FNO margin calculated only on Ledger Balance?". Or, "Is F&O margin is supported by DP holdings credit in addition to Ledger Balance?"
Regards
Subra (LondonVisitor)
