Comment on Zerodha - Margin Policies

Nithin Kamath commented on 06 Jan 2016, 02:22 PM

1. Currently we are not, very soon we will as we intend to provide margins without even pledging (stocks lying in demat).
2. How much is still not decided. But for now, there is no charge. It will be charged based on how much margin used.
3. Yes, you are the owner of the stock, you will get benefit of all corporate action.
4. ALL MTM losses has to be paid in cash to the exchange. So we usually tell clients to keep anything between 10 to 20% of the margin required in cash.
5. Same as above.
6. No, it is all treated as call option writing. No margin benefit you get because you are writing calls on the same stock.
7. Unfortunately exchanges won’t recognize this as covered calls. All losses is debited immediately whereas all credits is received on T+1. You will not have control on what gets squared off first. So it is best to have some additional cash for all MTM losses.

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