When indecisive retail traders exists in the market, Volatility is high.
Now the serious trading begins.
Technical analysis will work fantastically now onwards.
All the best.
Discount brokers use to give leverage to traders using the money from two sources:
- Brokers take loan from bank, but its expensive for the brokers to take loan and pay interest for that and then give you traders leverage in that money.
- Most of the times, brokers choose in the capital of other customers that kept in their accounts and square off the clients position end of the day and get back the money that is lent to the traders and settle it.
But at times like Corona market fell so fast that the automatic systems could not square off the loss making positions of most clients and the capital of many clients went into Negative. So now brokers had tough time to recover this money from the clients that lost all their money and also the leverage money that they borrowed from the Discount broker.
Then the brokers claim bankruptcy and eventually the Govt of India has to bail them out.
Ultimately, the funds that kept in brokers account by investors will have to wait for the govt to bail out the broker.
And the tax payer has to bear the grunt of the entire non sense affair, who is innocent and not aware of all this at all.
I think these new rules are really good. So broker can not use one clientâs money to give leverage to another client.
As i understood from December 01 of 2020 if
(1) you sell a CNC share you can not re-purchase but will result in compulsory delivery . as of now you can sell CNC but if re-purchased it will be accounted as intraday . this aspect may not be possible from December 01 .
(2) however you can sell CNC and buy another share as CNC or use the sale amount to do intraday in any other scrip .
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20201123-37
@nithin in order to avoid actual delivery during expiry of a call option is it ok to buy put option of same contract and quantity during expiry week. In this case will there be any obligation of physical delivery?
You would have to then buy an in the money put. In which case, it makes no sense at all. You rather just exit the long calls.
Hi Sir,
I have one small query.
Suppose I have 1 lot of Nifty Option Contract JAN 13500 CE(BUY) overnight position and am squaring off and premium will be received.
Now say, I have 10,000rs in Funds and 20,000rs premium received after squaring-off overnight position. Now can I able to BUY 1 lot of Nifty Option Contract MAR 13500 CE(BUY) having premium of 28,000rs on the same day? Since I got 20,000 from squared-off position and having funds.
Please clarify my doubts.
Yes you can, the Option premium received from squaring-off your Long Option position can be used to buy Options in same segment on same day, if you want to use it for other purposes, you can do so only from the text day.
Thank you for clarifying doubt
Hi Sir,
I have one more query.
Case 1: Suppose if I short option contract of nifty as intraday, the premium received can be used for buying the option contract on same day?
Case 2: Suppose if I short option contract of nifty as carry forward, the premium received can be used for buying the option contract on same day?
Please explain
In both the cases, Option premium received from Shorting Option can be used to purchase Options in same segment on T Day, from next day onwards you can use it wherever you want.
Question,
I sell 100 shares of reliance on T1 Day, during the day, I buy/short shares using MIS, before the day end, I buy 100 shares of reliance again. Will there be any problem in this case?
Would request you to read this post, will clear all your doubts:
Hello,
sorry for bothering
I read the post 3-4 times, but still I have this doubt.
I sold PAGEIND today in the morning (T1 Day), and during the day, I shorted some stocks using MIS. Then If I buy PAGEIND again in the evening, do I have a chance of getting penalized? If yes, how much % penalty and why? I am doing my transaction in available cash i have in zerodha account.
Should I not buy share that I sold today always?
Sorry for bothering, thank you
If proceeds received from selling the stock are the only funds you have in your account, and you use these funds for intraday trading and later buyback the stock this can result in a peak margin penalty. If youâve funds other than this in your account then there wonât be any penalty. You can check this post to know how much penalty there can be.
Why? Check out this example in the post shared above:
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I had a question. As BTST trades now lead to stocks being credited to the Demat account, will 80% of the proceeds be available for trading F&O segment as well?
Ah no, only 60%.
If you bought on Monday and sold on Tuesday, the shares get credited and debited from your Demat only on Wednesday. On Tuesday, life doesnât change.
@mohitmehra will update here once we have created an article on why we changed the BTST settlement process.
3 Likes
@Prayag you can check on this article why we changed the BTST settlement and what are the consequences:
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see basically it is wiping out all intraday players , and majority loose on intraday basis for a longer period of time and even it has put breaks on retail option sellers also but they dont care much for it , anyways its affecting intraday players and penny option sellers , i feel it is good whatever they have done