Be informed of the new intraday margin policies from 1st Sept 2021.

If you are a daytrader currently making use of the intraday leverage facility of your broker,  be aware of the new intraday margin policies that will take effect from 1st September 2021.

From 1st Sept 2021, intraday leverage for equity stock will be limited to a maximum of 5 times of your trading capital. This new rule applies to all order types like, bracket orders, cover orders, etc. This new policy of maximum 5 x intraday leverage will have to be followed by all the brokers.

Also, there won’t be any additional leverage provided by the broker for daytrading in the f&o segment. So the client will have to fund the full overnight SPAN margin requirement even for daytrading in the futures and options segment.

If these new margin policies affect you as a daytrader, do not forget to make the necessary arrangements before 1st Sept 2021.