What is the legal route to trade us options for Indians? If it needs setting up some entity in some other country which Indians can do without leaving country?
I want to do the same thing - but instead of options in the US market, I want to trade Nifty futures on SGX.
Just out of curiosity, if you are in India why would you want to trade in US options and not Indian options ?
India doesn’t have LEAPs (long term equity anticipation securities ) apart from nifty.
Hmm…got it. Thanks. May be the reason for that is ultra low exposure of our population to stock market unlike USA.
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Sir simple reason we have shitty exposure margin on hedged index option trade they dont have this shit means higher ROI of your capital
Does anyone have any idea on the taxes and commissions charged while trading options in the US ?
Here in India, I believe that trading is a very expensive affair. There are numerous charges levied on every trade.
Indians aren’t allowed to trade overseas derivatives no matter what. Even if you find a loophole, say setting up an entity in another country, that will violate spirit of the law and can invite troubles for you for sometime even if you win legal battles at the end of the day. It’s not worth the stress. Most of the money that you make by trading those American options will be gone in paying lawyer’s fee for fighting court cases. Only way is to leave the country.
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Even investing in US from India is not smooth, so options would be much more difficult.
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I heard of NSE IFSC , look at it. Might get something.
Indian Resident are not permitted to trade SGX. SGX is for foreigner who find it hard to trade NIFTY due to indian rules and regulation.
Some Indian brokers allow to trade in US stock market but in derivatives , I am not sure . One can read this article to know more about this and to gain some more knowledge ;
NSE IFSC is for NRIs and foreigners not for Indian residents.
SGX will also move to NSE IFSC, from Singapore, in future.
True, trading derivatives overseas is not allowed under LRS.
We’ve been having far too many large gaps to be able to trade the markets efficiently. Hence, the need for overnight futures market which is available for domestic investors/traders as well.
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one way would be to open a bank account in Dubai, then have a relative/friend who lives outside of India transfer that money to the Dubai bank account, then those funds would not be LRS. use those funds to trade derivatives, u can always transfer the money to u friend
To legally trade US options as an Indian resident, you need to follow the guidelines set by the Reserve Bank of India (RBI). One common method is to use the Liberalized Remittance Scheme (LRS) which allows Indian residents to remit up to $250,000 per financial year for permitted current and capital account transactions, including investment in foreign stocks and options. Alternatively, you can set up an entity in a country with more relaxed regulations on trading, like Singapore or Dubai. However, it’s crucial to consult with a financial advisor or legal expert to ensure full compliance with Indian laws and regulations.
Is it fully legal to trade options in US market?
What is the min capital required considering my strategies : BULL PUT SPREAD & BEAR CALL SPREAD
This thread is where we spoke about this. Trading options in US market using LRS is not allowed. The thread I linked has all the details and nuances explained well.
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