My view on the reduction of intraday leverages is that there will be near-term pain (for Zerodha too). We’ll see a drop in trading volumes and an increase in impact cost. But in the long term, more traders will survive & hopefully make up for the dip.

There is an argument to be made for lesser intraday margins. VAR+ELM or SPAN+Exposure margin calculation is based on risk/volatility. It doesn’t differentiate between intraday & overnight risk, or that intraday is less risky and hence ideally requires lesser margins. Read more.

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