Finvasia

[Finvasia]

@Finvasia

Now to our previous query.
As it is clear now, that after holding 3 lots of CRUDEM, total margin blocked will be 12000 (assumed amount)

Now let us say, Trader A has following positions (with 32500 (assumed) funds available)
3 lots CRUDEM NRML (with a margin blocked of 12000)
and
some calls of different strikes say worth 20000
and
a clear balance of 500 after above trades (a*)

Now all of a sudden crude market tanked and his 3 lots future positions were closed with a loss of say 4500. With closing of positions, margin block should be released with an MTM of -4500, say 7500 was released. Now total funds available should be 7500 + 500 (a* as above) = 8000 (b*) Am I right in my understanding till here.

Now, during market fall, all of a sudden, most of his call options BUY positions were also squared off (who did it, why did it, is a question mark and need a clarification, because there was no big MTM loss, MTM loss of futures was already within margin blocked limits. Call positions were squared off, at random, without taking into consideration anything, neither call strike nor price). Total amount for which call were squared off was say 15500.

So now total funds available should be 8000 (b* as above) + 15500 = 23500
Am I right in my understanding till here

After sometime Trader A bought some calls of different strikes for total value say 19000. and held till close of session

Please let me know,
- What will be the closing balance and next day opening balance, for the trades described above. I have taken minimum funds available (with 500 only as extra balance after those trades)
We wont take expanses and taxes into account, for ease of understanding, as these wont be a big amount.
- Would there be any exchange margin shortage applicable, as at eod there is no future position or option writing.

Thanks

Hi,

Yes, available shall be Rs 8000.

We do not close Buy options since max loss in Buy option is to the value amount already debited (in this case 20,000). Only sell options and futures are closed once the loss reaches to 80% of available margin.

Typically, BUY options are not squared off. If you have closed/Squared off options today, the margin to carry fresh positions is not given for the same day.

As you had Buy Option on 4.6 EOD and sold next day, you shall not get any margin benefit to carry more position on 5.6. In case you had Sell Option on 4.6 and closed sell position on 5.6, you may S/B with released margin on 5.6

In your example Call BUY options were closed (On EOD 5.6), you shall only carry overnight position upto 8,000 (after MTM Loss). On 6.6 you shall be given additional benefit of 23500 (15500 plus 8000) for trading (assuming no overnight position)

In your case, you had closed Buy Option and futures got closed due to MTM loss. There shall be no margin short BUT you took fresh position (calls) after closing your BUY option hence, there shall be short margin. Closing of Buy Option does not give you margin on the same day to create fresh position for overnight (intraday trading shall have no margin implication).

Thanks

 

[Finvasia]

@Finvasia

- Will you (your RMS) allowed me to trade above the amount, what I have in my trading account. Suppose I have a balance of 20000 in my trading account, I have already used up 18000 by way of purchasing call options. Will you allow me to trade above 2000 in my next trade, or to say for 2010. Because I have seen (many times) that my trades were rejected because I have short of 50 or 100 in my trading account.
- Can a trader (trading regularly) with you, have a negative opening balance next day, in thousands. Though I can think of a negative balance of few rupees only, comprising of taxes and other charges, on trades done previous day. Like suppose I have 20000 in my trading account and I did scalping comprising buy sell a few time and my total TO for the day was say 70000 and at eod I bought trades for 19990, so that only 10 left at eod. Now as taxes has to be paid on my trades, say total taxes being 200, my trading account next day will be in negative, -190. Right

but if you think, there may instances for negative trading balance (in thousands) next day, then please explain with example(s).

Thanks

Hi,

Our RMS shall not give any additional margin. You need to be in a category plan to avail any additional limits. Hard to track rejections at client level basis.

Clients can trade in negative balance up to 5 days in case any collateral (typically Stocks or exchange approved scripts) are given. Naked negative balance is not allowed.

Yes, there could be loss of thousands. Please remember, there are spike moments/volatility in market. Though RMS is designed to close at 80% loss but there are instances when closing trades happened over 100%. In such situation, it is very hard to recover funds from clients hence business loss.

Thanks

 

[Finvasia]

Was there a problem with Nest today? Does Finvasia's Nest usually give a lot of problems? I raised a ticket earlier today to switch from NOW to Nest.

Hi Newbie Day-Trader, We had no NEST issue. Thanks

 

[traderniftybull]

Thanks Finvasia, to reply my multiple queries and to clarify various doubts.
Your replies are very helpful.
Thanks once again.

 

[anildnr]

Hi Finvasia,
Today I just started trading with you and sorry to say it is really horrible experience.
1. I trade in mobile using SCAPELRT and during login only it gave me shock by saying connection established. I called customer care and they told there might be soma patch update and I need to reinstall it again. I reinstalled it again and luckily it got worked and I did payin.

2. Adding scripts in Marketwatch is horrible job and I need to select everything and it will refresh for every selection. It took 5 minutes to me to add 3-4 scripts

3. I added bn 26300ce and 26300pe etc..in market watch total 5 scripts I think. After that when I was thinking to trade not sure what is what as the script name is showing till BANKNIfty21J. I need to click on that to check what I am buying/selling

4. Regarding margin requirements, when compared to zerodha that I used previously , finvasia is providing very less margins (Without interest). May be with paid leverage It may get equal to zerodha. zerodha is charging brokerage and finvasia is charging interest. so when I do less trades with option writing zerodha is far better than finvasia tool wise, margin wise.

 

[Infooo]

Hi Finvasia,
Today I just started trading with you and sorry to say it is really horrible experience.
1. I trade in mobile using SCAPELRT and during login only it gave me shock by saying connection established. I called customer care and they told there might be soma patch update and I need to reinstall it again. I reinstalled it again and luckily it got worked and I did payin.

2. Adding scripts in Marketwatch is horrible job and I need to select everything and it will refresh for every selection. It took 5 minutes to me to add 3-4 scripts

3. I added bn 26300ce and 26300pe etc..in market watch total 5 scripts I think. After that when I was thinking to trade not sure what is what as the script name is showing till BANKNIfty21J. I need to click on that to check what I am buying/selling

4. Regarding margin requirements, when compared to zerodha that I used previously , finvasia is providing very less margins (Without interest). May be with paid leverage It may get equal to zerodha. zerodha is charging brokerage and finvasia is charging interest. so when I do less trades with option writing zerodha is far better than finvasia tool wise, margin wise.

I frankly agree with you. The scalpert app is horrible. Damn slow and keep on hanging.. u cannot trust that for high frequency trades

 

[Newbie Day-Trader]

Hi Newbie Day-Trader, We had no NEST issue. Thanks

This is was brought up several months ago as well, that if our Nest becomes inaccessible due to disconnection of the Internet or computer-crash or whatever, then what are other options to manage our open positions from mobile-phone? Can Scalpert or something else mobile-based be used to at least close open positions? Months ago, I was told that Call & Trade was the only option in such a scenario, is that still the case?

 

[Finvasia]

Hi Finvasia,
Today I just started trading with you and sorry to say it is really horrible experience.
1. I trade in mobile using SCAPELRT and during login only it gave me shock by saying connection established. I called customer care and they told there might be soma patch update and I need to reinstall it again. I reinstalled it again and luckily it got worked and I did payin.

2. Adding scripts in Marketwatch is horrible job and I need to select everything and it will refresh for every selection. It took 5 minutes to me to add 3-4 scripts

3. I added bn 26300ce and 26300pe etc..in market watch total 5 scripts I think. After that when I was thinking to trade not sure what is what as the script name is showing till BANKNIfty21J. I need to click on that to check what I am buying/selling

4. Regarding margin requirements, when compared to zerodha that I used previously , finvasia is providing very less margins (Without interest). May be with paid leverage It may get equal to zerodha. zerodha is charging brokerage and finvasia is charging interest. so when I do less trades with option writing zerodha is far better than finvasia tool wise, margin wise.

Hi anildnr, We appreciate your feedback and apologies for the inconvenience. Currently, we working to improvise the suggestions in our next version. In the meantime, please feel free to try other applications such as NEST, NOW, Fox Trader & Presto. Thanks

 

[Finvasia]

This is was brought up several months ago as well, that if our Nest becomes inaccessible due to disconnection of the Internet or computer-crash or whatever, then what are other options to manage our open positions from mobile-phone? Can Scalpert or something else mobile-based be used to at least close open positions? Months ago, I was told that Call & Trade was the only option in such a scenario, is that still the case?

Hi Newbie Day-Trader,
Yes, please enable both NEST & SCALPERT. In case your system crashes, please log in to the Mobile App using same User & password for trading. Hope this helps. Thanks !

 

[traderniftybull]

Anyone facing problem in connecting Finvasia, NestTrader

throwing error
'failed to connect server'

Not an internet issue as NestTrader from other broker is running fine.