Options strategies like iron condor, call or put spreads have fixed profit and fixed loss. Still the margin requirement is too high. It is understandable that the margin requirement for naked selling of options should be high. But when it is covered by a contrary position the risk is truly limited. I wish if it is possible to “bracket” these positions together so that the client take bigger position. Is that a technology issue or restriction of the competent authority?
Exchanges has to built these kind of products, broker has no play.
I agree. And I think exchange will not let this happen because there will be too many sellers and the movement of the stock will be unduly manipulated. But can’t understand why it cannot be allowed on the index options. Manipulating the index may not be easy and also the money required to manipulate will take concerted efforts of all the manipulative players collectively. Will have to see if exchanges in developed economies will allow this.
There should be a reason for that as these are same across brokers and fixed by the exchange.
Is there chance in nearby future of these products. Is exchange and sebi considering this as par with global standards.
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Yes I read this circular therefore I am curious as how will it play out in near future
I am all for that change as well no matter how you put it there are lot of things which really could be improved to make it all possible, see my point ? We need some cosmetic changes in the interface to make it all great. I do hope it will really work out.
Eventually yes it will work out but the problem is when or how soon