Comment on Zerodha - Margin Policies

Suriyakumar Jayabal commented on 26 Aug 2014, 11:52 PM

Thanks for these detailed explanations on margin policies.
I have few simple queries

1. For Intraday Equity trading, the Equity calculator page gives only around 239 stocks in that list. (Leverage of 3 to 10 times). I am sure that so many stocks could’nt be offered leverage. So the stocks which are not in the list, can I consider as 1x leverage. I mean I will buy stocks which are not in the list as MIS product type, provided I have sufficient margin in my account to cover for the entire cost of shares. (as if like CNC, CNC brokerage and charges are higher, so if I am sure I will sell those shares within the day, I can go with MIS fetching low brokerages)

2. These margins 3x, 6x , 9x etc are zerodha specific margins or it is common between all brokers (as if stipulated by NSE)
NSE provides Equity Calculator, with VaR margin etc., and says margin requirement varies everyday based on volatility. So Is zerodha margin calculation also varies in real time/every day or it is frequently changed at regular intervals. If so what is the interval. When is the last time the 239 scrips updated for the margin it is showing currently.

3. For example, if NSE gives margin around 5x and in zerodha margin page it shows only 3x (Is there a chance for this, I dont know, since NSE margin requirement varies every day), will my order gets executed even if I place 5 times the margin I have in my trading account. Will zerodha platform by itself will check for margins before placing the orders to NSE? Or the orders get placed and NSE rejects the order if it fails to meet the NSE margin requirement? In later case 5x may get executed.

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