Comment on Updates at Zerodha - June 2014

Bhaskar commented on 13 Jun 2014, 02:55 PM

Hi Nithin,

Well, 5% to 10% difference than what the margin calculator shows is pretty okay; even 10% upside than what the margin calculator suggests would raise the “Margin Requirement in Percentage” from 1.725% to about less than 1.9% which is still meagre, but that was not even what I tried to know!

What I wrote in the comment was about “Margin Requirement depending on the StopLoss which as you mentioned in the blog was in the range between 1.5% to 2.5% of the Actual Value”.

In the Margin Calculator, no matter where you put the stoploss, the ‘Margin Requirement in Percentage’ is always 1.725% of the Actual Value which is why the leverage is always 58x — i.e the margin requirement is always fixed when it should actually change depending upon where the stoploss is placed!

In reality, while I tried to place Sell Bracket Orders in Zerodha-Terminal (Nest), the ‘Margin Requirement in Pecentage’ terms for RCOM was about 4%, for HINDALCO it was about 3.5%; again irrespective of where I put the stoploss!

Now, in these cases the ‘Margin Requirement in Pecentage’ terms were way beyond the upper range of 2.5%+ which to me is quite strange!

I wish to know the reasons for such huge variations.

Sincerely hope you could elaborate on these issues.


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