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Let’s take an example – To buy one lot of NIFTY futures, you need the entire SPAN + Exposure margin which is 11.5% approx Rs 1.04 lakhs to take a trade. In past broker was offering additional margin for intraday trades (MIS, CO, BO) with up to 33x margin. So now that will be restricted to SPAN + Exposure across the board. No broker can give you extra margin as per SEBI new guidelines.
With these changes, all brokerage firms need to collect upfront margin from clients account described by the exchange. In such a case, now you need an entire margin (SPAN + Exposure in case of F&O and VaR + ELM in case of equity) upfront in your trading account. This will reduce the number of trades which you were taking in past, but this will reduce your risk in case the bid goes against your call. Higher the leverage, higher the chance of panic when trades go against you and higher the odds of losing.
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Zerodha Trade@20
