More curbs likely for index option trading - Times of India

If Sebi wats to completely remove retailers from F&O, then they could impose unrealistic expectations ( say only those with 20LPA salary or 50 Lakhs networth etc… ).

Consultation paper should give us an idea.

I still don’t understand why sebi is doing all this, instead of increasing their surveillance to prevent manipulation and educate retailers ( may be NISM certifications ) as an entry barrier before one can access F&O

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Amd how would this even work.

Let’s say my income does not meet the thresholds,but I have stocks/Nifty50 Etfs.

Without the possibility to hedge, I would have to hold on to losses or sell at a loss without having any chances to hedge my positions.

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i dont think sebi is smart enough to understand these.
reason for hedging is to protect our investment, but our market not hedging friendly.

for eg:


here is the lowcost portfolio hedging. this protects upto 50% nifty fall which is achieved at -30% itself. maximum possible loss(insurance) is only 78k but sebi blocks 3.7 lakh, that 3lakh could have been used to invest. now this 3lakh will give negative growth to investors .

Sebi could tell brokers to set engine rule to block buy position from square off before sell position. but only thing they know is “ban ban ban”

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Max to Max, I guess…, (oh sorry wrong word), Speculate, they gonna bring so called consultation paper (for being transparent, as Sebi chairman quotes) on ban of weekly expiries, just like last year as we lost the heart of derivative market ( Bank nifty weekly options), this year we may lose this too, later year or two, they’ll realise they ve fu**ed up the derivative market volume in terms of “Saving the Retailers” and then they’ll back with some other New rules,
Retail traders just Wake up everyday ,start backtest with new level of frustration and look for alternatives.
I still remember last year, they were planning of extended trading hours just for derivatives and now complete washout.

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I suppose you dont pledge holdings?

isnt there 18% interest on non intraday positions that taken with collateral margin? thats still a negative growth.

like western markets, there shouldnt be any extra margins blocked for same expiry hedges. same for covered call.

It’s been really frustrating with the constant change of rules.

If they make any regulatory changes once in every 2-3 years, that would be fine. But here, every day they are coming up with something.

And I personally think, sebi/government doesn’t want retailers in the F&O market. In a few months, all retailers would be completely removed from derivatives ( via this consultation paper )

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Yes, It’s frustrating like hell plus this India Vix dropped below 10 as of today, that’s like adding Salt to wound.

Government ( the sleeping partner), The FM, herself said F&O is not for middle class, we don’t promote them to trade the Speculation, The Sebi report which showed that 91% of derivative traders are in loss, the same report shows that 93% of cash market traders are in loss too,No one talking about that? Why?
Because, they know retail mindset, they’ll hold those negative trades as it is CNC unless that turns profitable.

After latest SEBI board meet, when a POGO channel reporter asked about banning of weekly expiries due to some taxi driver foolishness of gambling on weekly expiry, who told him to trade??, if not here, these people will lose money elsewhere, then why punishing traders who are full time invested.

I bet, let’s SEBI collect the data of full time traders, especially derivatives, and then tell the percentage of profitable traders, I will not be surprised if it’s more than 50% too.

And yeah, if you have so much problem on speculation, then ban F&O as a whole, why only weekly expiries??, As a trader ourself, we expect sufficient volatility to trade around, whether it’s intraday or swing, when their was 0DTE options, we were looking for opportunities, everyday was like a hope (atleast for me) to learn the PA.

If any OG traders are their who were trading pre covid, they know how much margin they required to sell a lot of Nifty, and also leverage of around 20X for cash market was their too.

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No interest in Z. It only exists with few legacy brokers like ICICI Direct.

Need to maintain 50% cash equivalent collateral like liquid funds or money mkt funds or gsec. Rest can b equity.

Who is this guy? Checked the above posts to find nothing.

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The guy who gives gyan that weekly expiry banning is correct.
Whenever someone posts in support of retaining weekly expiry he will come immediately.
If u want to find him post in support of retaining weekly expiry,

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Arey. tell directly na.

Let me try your method.

Weekly expiry should continue. otherwise I will cry.

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IMO Most instruments in indian market is controlled & driven by Big Players…Even if weekly Expiry in derivative will continue its highly unlikely retailors will ever benefit, except few handful smart retailors.
Rules & Regulations are designed for benefit of Big Players (FII, DII ,Brokers, Govt ) not retailors. Big fish always eat small fishes to survive, that’s reality.

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Who TF is that

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it’s HIM!

image

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He has not come still. Probably he doesnt want to expose himself now. When he responds i will tag you.
If u want u findout still, u can go through tqna.com with titles about weekly expiry and you will find that one guy repeatedly giving “elaborate” ( i have given another clue) answers against weekly expiry.

@cvs are they talking about you?

I think so, but not 100% sure.

I for one was just trolling

People get offended very quickly here. They will start abusing too. :face_with_peeking_eye:

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its somewhat understandable on this forum since this involves actual money and livelihoods

being a hothead doesn’t sound like a great mindset for a trader though

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