General Trading Chat

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.
partially agree with you
however, i am quite new in the topic, learning new things
 

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