you have to scroll back many pages, bcos even i posted.
Finvasia is the highest margin blocker and they also highest haircut. Before, in Liquid funds they will have haircut of 25% whereas everyone was at 10%. After alot of criticism, they have reduced haircut but usually margin is higher than others.
I checked the last 20 pages, there were few posts in this regard including yours.
Futures about 8% difference
Futures with hedged option leg ranging from 5 - 15%
Two leg option spreads:
- Initial margin about 12% difference
- Final margin over 25% difference
Took initial margin difference and calculated, with 5 lakhs capital one can take two more lots with Zerodha. Let's say one trades both Nifty and Banknifty and capital is split evenly into two.
These are the numbers I used to find
breakeven.
Only two leg option trades are considered.
Average Profit per trade (per unit) for BN is 5.4/-; For Nifty 50% of that.
Average option price for BN is 220/-; For Nifty 65/-
With split capital of 2.5 lakhs, in Zerodha one can take 9 BN lots and 8 Nifty lots; With Finvasia 1 less lot for both BN and Nifty
25 trades for each Index per month, so a total of 50 trades.
If anyone's average profit per trade is higher than the above, then they will be making more with Zerodha. If less than that, then they will be saving more with Finvasia. Increasing no. of trades to 50 or 100 per index doesn't change result much. But increasing capital to 10 lakhs gives result in favour of Zerodha.
With 10 lakhs capital, quantity will increase and leaving everything else same, one would be making 0.5% (of capital) more with Zerodha. And increasing the trade numbers now to 50 and 100 per index will result in 1% and 2% respectively more with Zerodha.
Increasing the capital to 20 lakhs, one will be making 0.75% (25 trades), 1.5% (50 trades) and 3% (100 trades) more with Zerodha.
Increasing the capital further will likely hit quantity freeze, that means more orders for Zerodha and brokerage fee for that.
Will check the margin requirement tomorrow on live market to see if there is any huge difference than what I am seeing today.