Maybe cause you need more money to buy the same amount of contract. So in effect it reduces the overall profit margin and changes the calculation a bit.
The futures trader does not get premium on selling as does an option seller, so any increase in margin required makes it difficult for him to sell the position by needing more funds to do so. A option sellers loss of more margin required might be offset by rise in premium but unfortunately such is not the case with future sellers.
I think he literally translated “SEBI hamari acche se le raha hai” to English as “SEBI is heavily taking us”
It’s a fact sebi is taking us heavily…
Go to this thread everyone -
What will be BO order margin for one bnf lot?
Is ARTI legally registered? First, that should be done.
It’s in the thread itself that we are going to register first. Why are you guys not supporting this decision?@Sandesh @raz. What else have you got? We need to voice our interests at least rather than thinking government will always do right. Plus fees is shared by everyone. I just need more funders. If we lose, then what’s the shame? We want to be heard is all.
Not voting for BJP will also crash the market …a 20 percent correction will be a good opportunity for all …the market has gained a lot
Seriously this govt has anti people policy
Derivatives will be banned for retail investors.
Equity cash will also be limited to networth certificate value. If ur holding value with profit exceeds ur networth u have to sell some shares and bring your holding value down to match networth value. Not confirmed but that is the news floating
Hereafter only HNIs will exist in market.
What kind of nonsense is this, what will happen to those who are completely into trading and doing trading for a living. Nonsense SEBI
Any thoughts on why should this additional margin less for Futures as compared to option? Does it mean they want to encourage futures trade relative to options selling? Isn’t that counter intuitive to the idea of less risk by introducing these measures?
More brokerage for the exchange in futures than in options. .plain and simple loot of people’s money and nothing else.
It isn’t really ASM, but yeah exposure margin will be higher by what is on the circular.
Margins can only change liquidity, and increase impact cost for option premiums. But then IV calculations are meaningful for liquid strikes. I don’t understand why this would alter option valuations. Please discuss.
Well maybe options would undergo a different sort of change. But most definitely for futures, return on invest will be much lesser as leverage is now reduced and liquidity will be negatively affected because of a decrease in purchasing power.
What if there is already open position of options sold, do we need to add the additional ASM to maintain the position?? Is the penalty of 1% levied daily?
Yes bro definitely
Hello everyone I am new to this blog.
As SEBI and NSE both gave us sleepless night by various step taking WE retail trader out from F&O.
AS Now ASM as we all know will be 4% from DEC 2018. will be huge burden on us and we are also not earning any interest on Cash deposit in Broker A/c. Many of U will laugh that how could it be possible? I say yes it is possible. Broker make FD on Trader Deposit Amt and create BANK GUARANTEE which is acceptable by NSE but they refuse US accept BG from us say they does not have facility. I think we must raise voice on this issue also What U say guys???
Please have a look https://www.nseindia.com/membership/resources/download/mem_faq_compliance.doc