General Trading Chat

[vagar11]

A potential scenario could arise where you have used intraday profit from cash mkt to take delivery of shares. This would mean your delivery size is larger than free cash.
I have to check the latest changes bcos usually intraday profit does show up as additional margin.

In this, I will be charged 0.5% penalty on the profit that I made.

What if I do too many buys and sells. May be I have only 1L and allowed margin is lets say 4L by broker on 1L cash. At the end of day due to too many buy and sells, 10L worth of buy and sell happened. Will I incur penalty in that scenarior ?

 

[mohan.sic]

In this, I will be charged 0.5% penalty on the profit that I made.

What if I do too many buys and sells. May be I have only 1L and allowed margin is lets say 4L by broker on 1L cash. At the end of day due to too many buy and sells, 10L worth of buy and sell happened. Will I incur penalty in that scenarior ?

No I think too many trades is not a problem. Because if at all peak margin issue comes, its applicable on the highest margin we took in the day.
Highest margin is not sum of margins for all trades. Its just highest margin held on any single trade. Like if we took 5 individual trades each value- 1 lakh. 1.3, 1.5, 1.2, 1.1 lakh then it will be applicable on 1.5 lakh.

 

[mohan.sic]

There is an introduction of peak margin penalty now.
https://support.zerodha.com/categor...ypes/articles/peak-margin-penalty-equity-sell

Can I be charged some penalty if I am dealing only with Cash in stocks(not taking margin trades on stocks, not taking F&O trades).

No issues ...because point of using margin comes only when we dont have cash in trading ac on the "T" day. When we have cash on trading day it means our position is against the cash..not margin..

 

[mohan.sic]

If SEBI really implements the norms it prescribed in phase manner it will be really tough by this year end.

Actually i think SEBI said that peak margin violation charges should not be collected from clients and it would be charged to brokers if they are not careful. So many brokers are very careful and tightened margins...

 

[timepass]

Looks like option buying will not be affected. No broker provides margin for that.

 

[mohan.sic]

Looks like option buying will not be affected. No broker provides margin for that.

They provide margin for option buying and option writing also ( infact they provide huge margins ) Let's not take the names but full service brokers mainly with regional risk management teams and dealer driven brokers used to take huge advantage earlier when margins were in check only on EOD basis.

2 lakh margin they give 5k qty of Nifty option writing on expiry days( low premium expiry options with a sl ). Some times even in normal days...Trade intraday and no carry forward hence no EOD margin shortfall. Now this intraday peak margining has ruined their business.

 

[bkb]

There is an introduction of peak margin penalty now.
https://support.zerodha.com/categor...ypes/articles/peak-margin-penalty-equity-sell

Can I be charged some penalty if I am dealing only with Cash in stocks(not taking margin trades on stocks, not taking F&O trades).

In reference to example given in above mentioned article, I think assumption of peak margin penalty is incorrect. As mentioned in the example, you have no other margin available, i.e. other than funds from sell of shares in your DEMAT. After selling the shares, you are using the available funds, after hair cut, for taking a position in F&O. Now, before you close that F&O position, you will not have funds to buy back shares sold in first leg. Hence, you will buy back shares only after you have cleared the F&O position. Once you have closed F&O position, you again have margin available, from sell of shares in first leg, after adjustment of Profit/Loss of F&O trade. And from this available margin you are buying back shares sold earlier. So, at no point in time on that day you have exceeded margin rules and hence no reason for peak margin penalty.
This is my understanding and personal opinion, which may be incorrect.

 

[timepass]

Help me understand this. Which FDs have a rate cut and which don't ? Bank FDs.

Government withdraws interest rate cut order on PPF, other small savings scheme

https://timesofindia.indiatimes.com...small-savings-scheme/articleshow/81810387.cms

 

[brokenbull]

Help me understand this. Which FDs have a rate cut and which don't ? Bank FDs.

Government withdraws interest rate cut order on PPF, other small savings scheme

https://timesofindia.indiatimes.com...small-savings-scheme/articleshow/81810387.cms

Finance minister did a ulta on this reduction possible because of upcoming state elections.
Next quarter by July1st they may reduce them.
All PSB banks are reducing rates. Most of the private ones also reducing. Lalkshmi Vilas Bank honouring old high FD rates but reduced now. since the most risky player LVB got bought out, now the other risky ones like Indusind, Equitas, DCB etc are offering above 6% (senior 6.5+)

 

[timepass]

Yeah, it's just money

D’Mart’s Radhakrishnan Damani purchases Rs 1,000 crore house in Mumbai’s Malabar Hill
https://indianexpress.com/article/c...0-crore-house-in-mumbai-malabar-hill-7257063/