Changes in margin requirements from 1st September 2020: Zerodha

 There two major regulatory changes from 1/09/2020.

* mathod of  pledging stocks, and 

* Upfront margin requirements ( Stocks and F&O on NSE BSE& MCX) 

New pledging system

Until now, when you pledged stocks as collateral to receive margins for trading F&O, you had to move it from your Demat account to the broker and in turn to the clearing corporation. Going forward, the stock will continue to remain in your Demat account and can be directly pledged to the clearing corporation. Over the last weekend, we have unpledged all securities which were pledged with us to the customer Demat account, and many have repledged it using the new mechanism 

New margins system

There are going to be a bunch of changes from tomorrow with respect to margin requirements.

Sale proceeds from the holdings can be used to take a new position

We are ready with a new system to debit shares from your Demat and make an early Payin to the exchange on the day it is sold. By doing this, we can ensure that you can continue using the full value of sale proceeds from your stock holdings as soon as you exit them to enter new positions — other stocks or F&O positions. While you might hear that this isn’t allowed at some other brokerage firms, nothing will change for our customers.

Using sale proceeds from T1 holdings

Similar to your stock holding, you can sell the T1 holdings (stocks bought the previous day and yet to be credited to your Demat) and use the entire value of the proceeds to buy new stocks for delivery. But there is going to be a small change here if you want to use the proceeds from T1 holdings to trade F&O, you will be able to use only 60% of selling value. 

Intraday profits can be used for new position only after it is sattled

Currently, you can use intraday realised profits for taking new positions on the same trading day. Going forward, you will be able to use it only after 2 days in case of equity/stocks and the next day in case of F&O. This is because the settlement cycle for equity is 2 days and 1 day for F&O, which is when the profits get credited to your account from the exchange only then. So intraday equity profits earned on a Monday can be used to trade more only on Wednesday, and intraday F&O profits earned on Monday can be used to trade more only on Tuesday.

Option sell credit can be used only to buy options on the same trading day

When you exit your long/buy option positions or enter new write/short options, the proceeds or credit of option premium can be used for only new long/buy option trades on the same trading day and only within the same segment (proceeds from equity options can’t be used for currency or vice versa). You can use this proceed or option credit for all other types of trades only from the next trading day.

Regards,

Team Zerodha

Thank you 

" Let's create wealth together "

Golden rules for intraday trading

Whenever you go in any field you have to follow some rules. Sometimes this rules are not compulsory but that rules make your work easier and good for your work.

We have 10 golden rules which is not mandatory in day trading but if you follow that rules this rules will make your journey little easier and reduce your risk.

Follow this rules this will help you to create good wealth.

* Trading only in best Day Trading stock

This is  a basic rules for intraday traders. Every stocks are not good for intraday trading.
For intraday it requires Liquidity, volatility, volume.

* Strict entry, exit and stoploss.

Before you trade, Find best entry point and exit point. And follow strict Stoploss.

* Trade with money which you ready to lose 

Day trading is most risky in share market. That's why this rule is very important.  Your money can be vanished even in a minute if you trade  Wrong.

* take positions with limit order

Some time You can't get perfact entry point with market order. That's why use limit order instead of Market order.

* research and analysis 

Research and analysis is key to success in stock market. You can beat some speculators with your search.

* Trade record 

Saving your trade record will help you to know that where you are good in trading.  This will help you to make strategies in future.

*Don't trade Daily

  You shouldn't do trading just because of sharemarket is open. Trade only when you have researched well & you are getting best entry points.

* don't Use your emotions 

Don't use your emotions during  Day trading. Someone has said "if sharemarket makes you feel high and low you are more likely to loose money in market".

* Trade in few stocks

Don't trade in every sector and every stocks. Trade only in those stocks where you are good. Use your saved trade record and find out where your success ration is good and try to trade in that known stocks.

* Use strict stop loss

Stock market is highly volatile in nature. So use stoploss very strictly. It will help you to reduce your risk of losing your capital.

This Rules are not mandatory, even you can trade without using any of this rules. But this rules will help you to achieve your Goal this are some golden rules for intraday  Trading.

Intraday Trading strategy

   INTRADAY  STRATEGY

* Before trading hour choose three/four liquid shares.

* Note down entry and target price.

* When open price and low price are same then buy the shares and keep stop loss at open price, the big move can come.

* When open price and low price are same then keep stop loss at open price and sell the shares, might big fall can come.

* When any stock cross the ATP( average traded price ) then buy the shares big move can come.

* When stock breaks the ATP then sell the share big fall can come.

* When stocks open on negative price then recover and crate new high then buy and trade, (stop loss at low price)

*When  stocks open positive and make new low then sell and trade, (stop loss at open price)

NOTES:

1. if your are new trader then you should try paper trading first.
2. as a trader or investor keeping your capital safe should be first priority.
3. never trade against the trend.