Is IntraDay Trading Survive without Leverage Products?


#1

Is IntraDay Trading Survive without Leverage Products? :man_shrugging:


#2

Even brokers won’t survive.


#3

Lol… True


#4

Yeah I’m wondering how it would be if there is no leverage product. The first thing i’ll do if leverage is discontinuted or removed permanently. I’ll die half & rest I’ll plan to rob the bank for sure. If not bank, I’ll be the robber for sure.


#5

Leverage can never be removed for intraday.
But it can be controlled.
I came from forex trading from foreign brokers only to later realise it is illegal to indulge in margin trading outside of India as a citizen.
In forex brokers offer over 1000 X leverage. Which is insane. And regulators soon brought it down to less than 50 in the US.
But in India there is no crazy leverage, I don’t think it will be removed.
And if it is removed completely, then traders with small funds are out of the game. And this a big loss to brokers and entities.

And it definitely is a nightmare. But one we should worry. :grin::grin:


#6

First of all, My eyes are glorified by reading your message "Specially

In addition, @nithin @Nikhil.A should really give best clarification.


#7

I am not a broker nor have any experience. But I can assure you that leverage won’t be removed. That is the core of intraday.
Intraday attracts new investors.

As of now less than 1% in India trade intraday. So there is still lot of room for this industry to grow. And leveraged products play the biggest role.


#8


@anjanbabu


#9

If leverage exists for two years. I’ll be well established. But Still expecting a message from founder of ZERODHA. @nithin @Nikhil.A


#10

I think you should stop worrying :grin: . Because it is more likely to exist forever.


#11

I’m not worried anywhere. But always concerned. life isn’t just about leverage lol. Somewhere I’ll get a small clerk job. Dreaming big settling small. Leverage changed my life already to great extent.


#12

Same here. I wouldn’t have made it big without leverage.
Imagine me buying 1000 quantity with just 25,000 RS in the trading account.
All the best. There is still more time for everyone to make a fortune for themselves…


#13

@anjanbabu Registered your words. :grinning:


#14

Still waiting for the answer of this post.


#15

So there are two things

  1. Intraday leverage on stocks

This may not be removed. Anyways India works on T+2 settlement for stocks. So even for a delivery buy/sell only a portion of the actual value of the trade (VAR margin) is blocked. This will continue

  1. Intraday leverage on F&O

F&O contracts are leveraged contracts already. All brokers give additional leverage over and above what is available inherently for intraday. This may not continue for too long.


#16

i always wondered how intraday margin works ,for ex. a future carryforward lot of nifty is 70-80k and same is 30-35k for intraday so this remaining margin is gets blocked from broker account or exchange doesnot need it as the positions are cleared at the end of the day


#17

Anything can happen but personally I feel it is very less likely that regulator will remove the leverage altogether for intraday whether it’s stocks or F&O. It may come down to some extent but they will not remove it.


#18

Exchanges block it from the broker. Essentially it will be getting blocked from brokers funds.


#19

How does broker make sure that he has adequate funds for blocking of that margin.
For example if he has few clients trading with very high capital then will broker in all the cases have available funds for blocking of margin .


#20

Why are we discussing this question…are there any rumours of such around??? Please don’t tell me there are rumours…they have a habit of coming true in my life especially the horrid ones…:cold_sweat::cold_sweat::cold_sweat::cold_sweat: