Is it possible to block money segment wise. Because, I have seen the same in ICICI Direct. Since broking rules applies same for all, so it can’t be that only ICICI Direct can pull this off.
Please consider adding this feature since it will be a leap in trading experience on Dhan. I have attached a screen shot below.
how is this useful? can you please elaborate?
There is multiple usefulness for the same.
Suppose you have derivatives open position which is taking a notional loss that means more inclusion of margin from trader’s account. This blocking feature would prevent from taking any unintended adversity from that open position.
Now, you might say that since we have GTT, how come this blocking feature is useful! You’re right. But problem is if there is a server problem then GTT is redundant. This blocking feature works as a secondary protection mechanism.
It helps in capital allocation for different segment which is helpful for disciplined market participation.
You might say that we should be able to do that in our mind. Sure! Then think about dividend pay-outs tab on Dhan. What is the point of having this tab since we can keep a note on a diary or check it from back office (in case of other brokers) or check it from Income Tax website.
This is about ease of doing business. Thats all.
In times of uncertainty, this feature would enable us for capital allocation like there is in NPS or National Pension System. You can decide how much to put in stocks or how much to put in bonds in NPS. Again, we can do it in our mind. But again, it all about ease of doing business.
Got it… Thanks for the explanation… Dhan team please look into this.
Hi @aritra, We maintain a single margin for all segments, would not be possible for us to built this. This is available in few bank based brokers only for their corresponding partner bank where they do not transfer funds to a broking account - instead block funds in bank and assign that as a margin available to a segment.
Going forward, how trading accounts manage cash / funds / margin is change with new set of guidelines that are expected. With that all brokers - tech focussed like us, bank partners like you mentioned here, discount brokers or even traditional brokers - will manage funds in a same way.