Comment on Zerodha - Margin Policies

Nithin Kamath commented on 12 Dec 2013, 10:14 AM

Sachin,

We are among a select few brokerages who block the lowest margin for option writing for overnight position because we settle with exchange on T+0. These margin requirements are as stipulated by the exchanges, and not really in our control. Also, I get your point of SL and etc, but as you know when blocking margins exchanges have to think about the worst case scenario, is the margin enough if there is a drastic movement in the underlying, which probably happens once or twice every few years. It is important to not compromise on this risk as both exchange and us as brokers.

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