Comment on Zerodha - Margin Policies

vinayak commented on 01 Nov 2014, 03:21 PM

Dear Nithin

I buy and sell overnight stock futures and options.

In the daily margin report there is a section “Margin required byExchange/NSCCL” that has three columns “Initial Margin” “Exposure Margin” and “Total Margin” . In all my reports it doesn’t show any Exposure Margin, the column is blank.

Then there is a section “Additional Margin required by member as per RMS” This shows some margin as well.

If I use the SPAN calculator, that show SPAN margin and Exposure margin which are broadly in line with “Initial Margin” and “Additional MArgin requires by member as per RMS”

Is the above the intention of the Daily Margin Statement?

Second question?

Assuming the above is correct, you had replied to Sukesh on 06 Sep above that automatic square off will happen once available margin falls below the SPAN margin. Does it mean that while when the “Additinal Margin….” may not be fully available in client account, as long as SPAN margin is available Zaerodha will not square off the positions (but client may be advised to square off on his own)?

Third question:

Does you SPAN calculator work exactly as the exchange calculator? I just entered my position (I had traded three days ago) into the calculator and the margins are larger than in my daily statement (the exposure margin is slightly larger, about 3-5%, that the “additional Margin …” column in my statement; the SPAN margin is a lot larger, about 15%) . If the SPAN calculator is not exactly what you internally use that is OK, it is a pretty good estimator (and slightly higher margin requirement estimate can’t hurt), but knowing that would help.
Also Is there a difference between margin requirements if a position was acquired a few days ago (and has consequently made MToM profit/loss) vs you are trying to enter that position now?

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