Mandated open interest Restrictions


#1

Why only few strikes are available for trading in Bank nifty options … ??? I mean SEBI is over regulating derivatives market to Scare away retail traders and it is well known… Is’nt this against free Markets and decrease liquidity in the markets


#2

Small incovenience for speculators, but has a greater impact in controlling the misuse of the system and protect the interest of investors.


#3

Yeah … That’s how these Regulators sell this idea to you and Me… But the truth is that increased margins not only have impact on traders like myself ( May be I’m biased as I’m a trader ) but it increases cost for people who want to hedge their portfolio… Higher margins leads to unhedged positions which is far bigger risk


#4

@chandru.vks… Also the SEBI is encouraging retail traders to move towards bucket shops which inevitably leads to tax evasion and retail guys loose far more in these bucket shops due their corrupt practices… High margins along with high transaction cost that we already have will prompt Big institutions and foreign investors to move to offshore locations like Singapore… Again less liquidity will be there in the markets…and as you know less liquidity means more Volatility