What is Delivery Margin in Ventura?

In Ventura Securities, delivery margin refers to the funds required to hold stocks overnight (beyond intraday) or the margin needed for physical settlement in Futures & Options (F&O), ensuring you have enough capital for full settlement, covering potential losses, and complying with SEBI's peak margin rules, with Ventura also offering a temporary "5-Day Margin" to pay only part of the cost for short-term delivery holding.

Key Aspects of Delivery Margin at Ventura:

SEBI Peak Margin Rules: You must maintain a certain margin (calculated as peak margin from random snapshots) to hold shares, preventing excessive leverage for delivery trades.

Physical Settlement (F&O): For F&O, if you hold In-The-Money (ITM) options to expiry, you need physical delivery margin, which includes VAR (Value at Risk) Margin, ELM (Extreme Loss Margin), and sometimes Ad-hoc margin, says Ventura Securities.

T+5-Day Margin (Temporary): Ventura offers a facility to pay only a portion of the order value depending on the scrip category, for a few days (like 5 days) to take delivery, but you must pay the full amount within that period.

Purpose: It safeguards the broker and exchange, mitigates settlement risk, and ensures you can cover the full cost of buying shares for long-term holding or for actual share delivery in F&O, unlike intraday trades squared off same-day.