Sure. This was taking place earlier than. And the margin required wasn’t rather a lot. So even when they promote OTM that are buying and selling at 0.5 on expiry day they might make some huge cash. There was no restriction on leverage.However now I don’t assume that’s attainable.However some small curiosity on idle funds is a chance. Nonetheless ready for mods to answer. If that they had clarified then it will have been higher. In any other case we’ll maintain assuming issues which can not even be true.
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I believe distinction between margin i.e. distinction between clearing company provided margin to dealer and dealer provided margin to consumer – can be utilized by dealer for possibility promoting for instance…how do you assume completely zero brokerage brokers survive?both float revenue or use of margin I defined above.
I consider its nonetheless taking place …distinction between margin of various brokers ought to offer you a clue …Mods or @Ananth are you able to make clear this…is it attainable that brokers who cost haircut than NSCCL or NSE offered recordsdata – can use these further margin for FNO buying and selling?
It’s because there are 2 sorts of haircut recordsdata. One is from clearing firms and different one is from exchanges. We use alternate EOD Var file (NSE) which has var % comparatively lesser than the NSCCL one. Additionally, clearing firms haircut has minimal haircut % standards.
NSCCL : https://archives.nseindia.com/content material/equities/APPSEC_COLLVAL_05042023.csv
NSE’s EOD Var : https://www.nseindia.com/all-reports
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Okay to make clear -You mentioned NSE EOD var file – has var% lower than NSCCL and also you additionally mentioned clearing company (NSCCL) has min. haircut …I’m confused …which one has decrease NSCCL or NSE (alternate)
Ananth:
https://www.nseindia.com/all-reports
This hyperlink you despatched has each recordsdata …EOD nse var % …the eod nse var file is .dat file which isn’t opened with widespread software program obtainable.
Do you comply with alternate haircut (in different phrases EOD % VAR) or NSCCL haircut?
Can brokers cost increased haircut to shoppers than both NSE or NSCCL offered haircut ?
Jason_Castelino:
In zerodha for liquidbees haircut is 8 %. Another dealer has 10 %. I don’t see any good purpose for the extra 2 % haircut.
@Ananth The alternate stipulated hair reduce for liquidbees is 10% presently. I suppose dealer can not go under what’s stipulated by the alternate. Does zerodha cost 8% haircut on liquidbees now ?
t7support:
Does zerodha cost 8% haircut on liquidbees now ?
Sure they do. That’s why I wished to know why my different dealer has haircut of 10 %.
Brokers can cost extra however by no means lower than the haircut % stipulated by the alternate. At the moment liquidbees haircut is 10% in alternate revealed file.
Hello,
You have got this nearly 900+ record of devices towards which you present collateral margin after haircut. I had few questions round this –How is the haircut determined? What components do you utilize to give you the haircut?
How usually is that this record up to date? Can it change at any time limit?
I perceive MTM adjustments to collateral margin with day by day value transfer. However do adjustments to haircut have an effect on collateral margin even after a selected inventory is pledged at a unique haircut? Briefly, if I’ve …
I have no idea who is correct and who’s flawed. If I get 2 % further margin clearly I might favour them. Zerodha is giving 92 %. Final I pledged was yesterday.
Additionally I wished to know why are they charging further. Received’t the dealer get 92 % margin out of it. Solely 90 is handed on to me. What occurs to that 2 %. The additional money I preserve with my dealer generates some revenue. I might have maintained decrease money if that 2 % was handed on to me.
curiousvi:
Do you comply with alternate haircut (in different phrases EOD % VAR) or NSCCL haircut?
We use alternate EOD Var file (NSE)
curiousvi:
as var% lower than NSCCL and also you additionally mentioned clearing company (NSCCL) has min. haircut …I’m confused …which one has decrease NSCCL or NSE (alternate)
I mentioned NSE var is relatively much less. It means few scrips NSE var can be increased than NSCCL. The clearing company has minimal haircut standards like 10%, 20% and so on. whereas there isn’t a such standards with NSE Var file.
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curiousvi:
the eod nse var file is .dat file which isn’t opened with widespread software program obtainable
It ought to open in notepad.
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Trade is charging 8% for Liquidbees and we comply with the identical.
Thanks @Ananth. If we go right here – https://www.nseindia.com/all-reports and take a look at the APPSEC_COLLVAL_06042023.csv the liquidbees hair reduce is given as 10%. So which one takes priority the VAR proven on the NSE web page you shared or the haircut % given by the NSE csv file ?
There are 2 separate haircut recordsdata i.e., one from NSE (Trade) and different one from NSCCL (CC). We comply with NSE one and Liquidbees for instance is 8% in NSE and 10% in NSCCL.
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