Why does Zerodha increase Intraday margins for MIS, CO, BO on days when the market is volatile?
This is done to ensure that there are enough funds to cover any losses that any client can create. If we don’t do this, we will be taking a systemic risk with all our other clients.
As a business, we are quite conservative in terms of risk. Whenever we believe there is increased volatility, the margin requirement goes up automatically.