You thinking you can’t do BTST anymore? WRONG!

You just need some extra money (if you wish to continue to work smoothly for next T + 3 days)
If no spare funds, then wait for T+2 days for partial ease of limit and T+3 for full limit.

P.S: This margin rule is NOT new.
For every scrip, the VAR margin requirement is different (based on scrip’s volatility). It ranges from 20 to 100%. Till today the rule was you needed 75% of VAR in your account before you can place your order.

For example, VAR margin for SRF is 25% up front and for HAPPSTMNDS it is 100%.

To buy SRF, you needed 75% of 25%(VAR) of total order value, for the order to go. Some small brokers may allow your order even otherwise, but you will be charged 1% penalty.

Now, If you wish to sell SRF the next day, another 75% of 25% of the sell order value should be there in your account for your order to go. (In the form of cash or pledged stocks)

75% of 25% blocked on Monday will be released by Wednesday evening (T+2) and the one blocked on Tue will be released on Thursday evening (again T+2)

This margin rule was launched in a phased manner last year and is NOT new. The only real news is margin collection requirement has gone up from 75% to 100%

That’s it.

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More from @iManasArora

13 Feb 20
Another way to create a new position or add to an existing one (Pyramiding), known as Squat!

Read on:
Bought #Dixon using 4 to 8 weeks breakout method using the weekly time frame.

The stock went below the breakout line & stayed lower for a few days (Daily frame). Came back up above the line again which is where I bought more. Imagine the legs exercise behaviour, Squat. ImageImage

Cup & Handle breakout on the daily frame. The stock went below the breakout line and stayed lower for a few days. I bought when it came back again & 'closed' above it. Another squat behaviour. ImageImage
Read 6 tweets

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