Interactive Brokers (India)

Aman1

Well-Known Member
#12
Some more useful information which you won't see on their website,

Derivative products on NSE have two types of Settlement methods - Cash settlement for index derivatives and Physical settlement for stock derivatives.

In case you are holding derivative positions which are Physically settled on expiry, the outcomes of such contracts would be long or short position delivery in case the existing derivative position is not closed on expiry day before 15:30 IST.

If you hold Long futures, Long ITM Call and Short ITM Put option position then long stock will be assigned.
Due to physical delivery, in case there is a long position assigned, you would need to have the required margins to hold the long position which has been assigned.
In case your account does not have sufficient available funds, there will be liquidations in the account to get the account back to be margin compliant.

If you hold Short futures, Short ITM Call, Long ITM Put option position then short stock will be assigned.
Due to the physical delivery, in case there is a short position assigned and in the event you do not hold sufficient long quantity in your account, the short position goes to Auction. Buying the stock on the next day will not offset the short position which has been assigned due to the physical delivery. Once the position has been settled through the Auction the short position will be closed.

You can look for Archived circular section on NSE's website for past few years for information related to Physical delivery.

Then immediately next question rises, if I hold stock derivatives position till expiry,
(1) when long - from how many days prior to the expiry the additional margin obligation applies before liquidation starts and at what margin rate (if any)?
Ans) The margin requirement for the expiring derivatives position will start increasing by 20 % everyday starting from T-4 day.

(2) when short - from how many days prior to the expiry do I need to procure the required stock holdings?
Ans) On expiry day, you need to have long stock position in your account to offset the short stock assignment.

I will only trade in Bank Nifty Options. I'm an option buyer not a seller.
 

Aman1

Well-Known Member
#13
That means some document(s) is/are still pending from your end. Write to [email protected] for assistance.

For others who are interested, while opening an account after applying online immediately ask for e-signature, upload all required documents. Post which print & send POA through speed-post or any courier. It will get opened within 4-5 business days once they receive it.

If you do not want to send POA, you can apply for Margin Account, then no Demat will be opened but you will be restricted to cash-settled derivatives only. For a Demat account POA is a must.

No Documents pending from my side now. However, they told me to wait because they would later ask me to send some hard copy of document. I'll call them tomorrow.
 

TracerBullet

Well-Known Member
#14
Quarterly settlement date is notified two weeks prior and is only applicable on funds over 2.25 times of margin required for open positions. If planned properly, i.e. on settlement date or a day prior NEFT the same amount to your IBKR account which they would sending back resolves the margin crunch.
Its nice that they give notice, but for intraday there is nothing you can do( was trading futures with them then). Money leaves IB account in morning i think, so you can send money only after that. And anyway, there is still early morning disruption while you wait for them to credit money.
There is slight workaround that they gave through liquid bees, but it still needed one to buy liquidbees with half the captial and it would still not work if they decide to postpone settlement by a day or so ( which they did once or twice ).

So far best broker that manages this has been Z with money in bank very early. Bank based brokers with 3 in 1 accounts should be fine too, but they are not feasible for me yet.
Anyway, IB is solid option with FnO/Stocks-overnight trades. Add another broker and you have a decent setup to manage outage. But they are unusable for equity intraday.
 

Aman1

Well-Known Member
#16
Cancelled my application with IB India. The procedure at IB is really ancient. Everyday they would ask for one document or other. Got fedup. This proof or that proof. so I asked them to stop this nonsense and cancelled my application and asked for refund. Yeah I will have to search for another broker now.
 

CougarTrader

Well-Known Member
#18
Cancelled my application with IB India. The procedure at IB is really ancient. Everyday they would ask for one document or other. Got fedup. This proof or that proof. so I asked them to stop this nonsense and cancelled my application and asked for refund. Yeah I will have to search for another broker now.
Ha ha ha...

So, is it applicant's issue or broker's fault? Apart from normal KYC they do not ask for anything else... And its all mentioned in their website, applicant need to read in order to follow the instructions properly...

On contrary, my application processed smoothly, may be because I kept an open mind with excitement to venture into some thing new perhaps... Unlike other brokers they happen to even proactively update my C-KYC, which really helped!

In my experience, IBKR happens to be very organized from all aspects...
 
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cloudTrader

Well-Known Member
#19
Bro.., have you come across any information about the Kotak Securities API ? I am trying to get a reliable Broker who provides good market feed also in addition to Interactive API. Zerodha is good but I will dealing in Far OTMs also for hedge trades and as such Zerodha will not suffice my requirement as they do not allow deep OTM buying.
 

CougarTrader

Well-Known Member
#20
Z is pathetically unstable for intraday given their outage issues. Not trustworthy at all...
Not true... Below are not my words. We can do this all day long, our opinions won't change ground reality. Zerodha is a sucker!

Last week's summary (nothing has changed over the years):

18-Oct-21 - Zerodha users face glitch on trading platform while selling shares - The Economic Times (indiatimes.com)

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And its a never-ending list!
 
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