Any Good broker for options

lemondew

Well-Known Member
#1
I would trade 100 -140 lots (buy and sell ) nifty every series. All positions would be spreads (every buy will have a sell and vice versa) and carry forwards. There is no intraday trading that will be done. Any brokers willing to give sell 1 nifty by blocking only span margin or lesser.

Example : Sell CE 8200 would have corresponding buy CE8300
Buy CE 8400 would have corresponding sell ce8500


Edit:
Any brokers other than Astha blocking only span margins for options selling.
 
Last edited:

lemondew

Well-Known Member
#2
Update:
The mainstream brokers with a little convincing agree to blocking only span margin for spread trades if there are volumes. Namely IIFL, kotak securities and others. The problem with these brokers is they charge anywhere between 20 - 50 Rs/lot.

Brokerage 50 lot buying + selling = 2500 Rs.(assuming 25)
Margin for 25 lots selling = approx 300000 for spreads
Cost for spread = 3000 Rs( debit spreads)
Tax Rs 300
Total cost = 5800
2% return would fetch 6000 Rs.
Return = none for 2 % profit on investment.

For profits brokerage is to be reduced or Returns has to be more than 2 %

:annoyed:
 

gmt900

Well-Known Member
#3
Update:
The mainstream brokers with a little convincing agree to blocking only span margin for spread trades if there are volumes. Namely IIFL, kotak securities and others. The problem with these brokers is they charge anywhere between 20 - 50 Rs/lot.

Brokerage 50 lot buying + selling = 2500 Rs.(assuming 25)
Margin for 25 lots selling = approx 300000 for spreads
Cost for spread = 3000 Rs( debit spreads)
Tax Rs 300
Total cost = 5800
2% return would fetch 6000 Rs.
Return = none for 2 % profit on investment.

For profits brokerage is to be reduced or Returns has to be more than 2 %

:annoyed:

I too am looking out for a broker who would block only SPAN margin for nifty spread option trades.

I find brokers are willing to reduce brokerage to as low as 10 per lot but are reluctant to waive exposure margin.

I am told Globe Capital may agree for reducing total margin, but they are not amongst the top brokers and I don't know anyone having experience with them.
 

tradedatrend

Well-Known Member
#4
I too am looking out for a broker who would block only SPAN margin for nifty spread option trades.

I find brokers are willing to reduce brokerage to as low as 10 per lot but are reluctant to waive exposure margin.

I am told Globe Capital may agree for reducing total margin, but they are not amongst the top brokers and I don't know anyone having experience with them.
As you said you want to trade 100-140 lot per day, means rs. 1000-1400 brokerage per day, means rs. 20000-28000 per month brokerage.

What is the point in paying rs. 20000-28000 per month as brokerage when you can trade unlimited @ 999 per month with discount brokers such a SAS online or Wisdom Capital.
 

gmt900

Well-Known Member
#7
Zerodha does not offer any reduction in margins for hedged option positions.
They go on to say that as soon as you square of one of the legs of a spread ,
margin requirement may go up.

It's all about the broker having security in case trader incurs losses while getting into or getting out of trade.

One way could be keeping stocks or NCDs in the dmat account with POW given to the broker.
 

lemondew

Well-Known Member
#8
Call up kotak securities they would agree to blocking only span margin but brokerage 30 Rs per lot if you can commit 100 lots per month. Munde in one of his threads wrote IIfl blocks only span margins for him . Aditya birla money also offers this at RS 25/per lot provided you can commit some minimum 100 lots per month. Basically i am looking at someone who can offer at 10Rs /lot.

Astha is the only discount broker who blocks only span margin and charges Rs 20 per order any number of lots. I am waiting for more reviews on astha. Not sure if I can maintain a lot of margin money through someone new like Astha. GmT just let me know if you come across some good well known broker who can charge something in range of 10 Rs/lot.


I too am looking out for a broker who would block only SPAN margin for nifty spread option trades.

I find brokers are willing to reduce brokerage to as low as 10 per lot but are reluctant to waive exposure margin.

I am told Globe Capital may agree for reducing total margin, but they are not amongst the top brokers and I don't know anyone having experience with them.
 

lemondew

Well-Known Member
#9
Margin for 25 lots selling = approx 600000 for spreads
from zerodha and other discount brokers. Astha trade however doesnt charge exposure margin.

It becomes 300000 if only span margin is charged. Hence it makes sense to pay to pay 2500 Rs brokerage as opposed to 200Rs for zerodha for 10 orders(buy + sell).
It doesnt make sense to block extra 300000 margin for 1 series to save 2300 Rs



Have you spoken to Zerodha about this? What margin are they asking?
 
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gmt900

Well-Known Member
#10
I calculate the costs for short strangle as follows;

Margin per lot 50,000 max
Brokerage for buying and selling 4X30=120 max
Taxes say 30.
Total cost 150.

For no loss , profit has to be only 0.3%

If one enters a trade with say 25 + 25 = 50 points inflow, 2500 will be profit. If trade is for one month, profit will be 2500 - 150 = 2380 ( 4.68%)

If one adjusts trade before closing it, there would be additional costs but it should result in additional profits too.

It is true that if you go for debit spread, profitability calculations work out as
lemondew has indicated.

I am trying to explore if profitability can be improved if:
Exposure margin is waived.
Brokerage is reduced to 10 per lot.

If one trades in 25 lots of short strangle per month, it will be 100 lots.
If exposure margin is waived, margin requirement may reduce by 40% to say 30,000.
 

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