This then explains the unusualness of the thread . From what I remember, it took me a few weeks before I was able to tag users on the forum.
With the detailed & prompt responses, for a moment I thought this being a planted set of questions (which it is, technically😋).
But for what it’s worth, it’s so nice of you to be responding to all our queries here. I think tqna is one of the most important cog in the trust wheel that Zerodha has built over the years. You being so active here is such an assuring feeling.
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So pledging gives you interest free loan against your securities that you can only use to trade … and as long as you’re profitable it’ll work in your Favour??
Is there any repayment time or it is for infinite period?
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There is no finite time. Once you pledge, extra margin is available until you unpledge.
Its all explained in the article below and the links in them.
Margin can be used for intra-day trading in EQ, selling options, trading Futures etc because you just have to put up the security.
Its the P&L that you need to settle in their appropriate time.
Incase there is shortfall when you need to settle MTM/PnL and you dont have sufficient cash, then there is Margin penalty applicable.
Also, read about 50:50 cash equivalent collateral for overnight positions.
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Hmm… no, there is no nomination for trading account. If there are any unutilized funds and no trades in the account, it gets transferred tot the bank account in 30 days. Whatever is the nomination in the bank account is what will work for those funds.
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Ah, wait, it shouldn’t take you weeks to tag users.
@Meher_Smaran, can you check if any settings on Discourse needs to be changed.
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Thank You Sir Ji For Responding On Nomination Query…
Last Point Want To Ask Is NSE Circular Mentioning Trading Account Too
For Reference, Attaching NSE Circular Image
So Requesting You To Guide Us Once Again…
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Ah yeah, @VenuMadhav corrected me and I was supposed to respond here. Ideally the nomination on trading account shouldn’t matter as the money anyways goes back to the bank account in 30 days. But yeah, in case before those 30 days if nominee reaches out, I guess we will in future have to settle funds to the nominee.
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That is a fantastic read. Well researched.
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Hi Nithin, would like to ask query regarding F&O
Does options trading in indices or equity will have any regulations/restrictions by SEBI ahead?
does one need to worry that whether retailers will be restricted one day in F&O bcz with recent RBI crack down on currency derivatives and also in past SEBI restricted derivatives trading in few commodities… so question lingers whether they will place any restrictions for retailers in indices/equity derivatives.?
how do we need to be prepeared for this?
My view is there is no point to worry about it, first let it happen and then we can start worrying about it. Also there is no way to prepare for it. Maybe a bad analogy but it is like asking should we worry about an earthquake because it occurred in our neighboring country. It may happen or may not , and one can’t do anything to prepare for it.
Due to many factors F&O participants are increasing with equity segment also
- India an emerging country with potential growth opportunities
- Many sectors performing good
- With gen Z, alpha beta with short mindset taking high risk in no time to earn bug profits from markets craze is increasing
- BIG Institutional participants are investing money
- In short time one can earn more money in no time in a day.
Kotak Bank bad news is one of such example so people watch out for news which helps them to earn quickly.
Nothing currently indicates that you need to be worried.
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wht i mean is when regulator announces no more taking fresh positions, only squaring off existing positions …in such cases due to decrease in volumes wht happens to put and call options premiums? will both premiums increase or decrease this overview will help for risk maangement thats the purpose of this question for prepaidness