if we can trade USA derivatives market , because there margin system is very good , for iron condor strategy in nifty its cost 2 lakhs approximately , but in USA its only 300-400 $ , they are fix at risk based margin system,
in india every thing is ulta - bulta ( opposite direction )
300 to 400 usd at 70 rs per USD comes to 2.1 to 2.8 lakhs. But yes in US there are no exposure margins, only span, that converts to more than 30% to 50% margins higher in India to US.
300*70 = 21000
It’s actually 21k- 28k
Right, my bad. But as said there are no exposure margins in developed world, only span. Exposure contributes a lot.
Any idea @siva SEBI will come risk based margin system in india , why SEBI is not thinking that, our market also following global market , SEBI chairman does int know how we can make better margin system in indian market, so only our liquidity system are very poor in stocks and 2 week expiray ,
you are No1 broker please explain them show some light to retail traders
We are 20 years behind US markets in terms of participation or understanding.
We are doing what we can because that is win- win for both clients and brokers, but final call has to be taken by SEBI. At-least we wish they get rid of exposure margins and later we can hope of those structured products based on risk.
I understand the participation part but can you throw some more light on understanding remark?
Really i hope
Participation in terms of both length( variety) and depth( liquidity). When it comes to understanding out of my personal experience I can say many traders don’t know beyond call and put in options, they just do a directional trade in anticipation of making quick money. Retailers who involves selling of options in a strategy are very rare. May be there will be few thousands of DIY traders who understand what they are doing, who has a trading system in place in whole country. Financial unawareness is still deeply rooted, more financial education is needed, we are trying hard on that part in various ways instead just giving tips. Hope for the best.
Can I do equity trading in USA via a broker like Vested? I wont take leverage, buy/sell stocks in full cash. Is it allowed by RBI?
-Problem lies in margin for approx 8k max loss it requires 30k upon than it can change with fluctuation as exposure margin is charged of 2% of contract size
-this makes trading in Fno gambling as recent data suggest retail people buying option (where most option expires wothless)
-then sebi thinks we should curb Fno for retail People
-Professional Traders do not like indian Market due to such stupid rules n think to trade in USA
-pls i request all brokers come to gather this is the time all have seen record no of retail traders come to market after i think SCAM1991-92.request sebi to implement only span for hedged option trades ,if the trust of retail is broken this time it will become very difficult from here on
