No additional intraday leverages from Aug 2021 in Indian capital markets

The benefit isn’t as much as in equity.

Nithin, what kind of effect will this have on naked option selling through MIS? Will it require NRML margin for intraday MIS naked option selling?

yep, already answered bhai just go through the thread

ok, this thread is on fire! Can’t check all the messages anymore :laughing:

Yes you will require NRML margins for MIS as well under new rules. Similar queries have already been answered above.

Not if your broker allows range of 450 and 200 points! what will you sell and what will you hedge then?

check this : OI Restrictions, Strike Price Range only 450 points range? Really Bad - #4 by magicpoison

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Combining - buying of an ATM option with the opposite position in futures gets quite good margin benefit and it falls under the specified range of options contracts allowed for trading… wont it? Am I missing something here?

So a trader like me who has 20k in his trading account and earning about 800rs using mis , will I face any problem after aug 2021 @nithin

Margins play big role in intraday both for trader and brokerage firms as well as govt as daytraders have to pay so many taxes…this circular is same typical govt working style…planned and implemented by sarkari babus …

@nithin at present when we do a credit spread or a debit spread, we get the new margin. So here I am assuming post aug 21, there won’t be change in that margin structure?

This circular does not impact the margin benefit you get while trading limited loss options strategies. This affects traders who use excessive leverage to trade intraday equity and F&O(mostly naked futures and option shorts).

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Means from now onwards margin requirement for MIS & NRML will be same???

I guess F&o volumes will decrease but over the period of time people will bring the money required as well. Sebi doesn’t want retailers to trade in the derivates segment. So by this move they will force most of the retailers to move to cash market. Even their retail needs to bring atleast 3-4x of their current capital for trading.

That depends on your strategy,risk management etc, leverage has both effects, depending on leverage alone is not sustainable.

Yes, for FNO, not now but eventually.

I am using a broker who is providing 20x leverage on option selling on expiry days, so they can give only give 4x from Jan-21 and 2x from mar-21, am i right
If so then margin game will end from jan-21 itself instead of aug-21am i right @nithin

For those using 20x leverage, for them leverage is as good as over from December 2020 when reduction starts.

Hello Nithin sir

After seeing all the conversation upside
I got an view of how does from stock exchange s and retail traders going to suffer with new SEBI circular ( which is absolutely not useful for anyone)
As you can Check now a days after covid - 19 pandemic so many youth lost their jobs and they are want to start TRADING OR INVESTING in stock market to survive AND

As I know thousands of people daily opening trading and demat account In different firms

As on my view after 10 -15 years ( 2020 - 2035 ) India may have ( 15 core to 25 ) active traders and investors

At present there was only 3 million traders and investors As I know

By this decision of SEBI is it making loss of confidence of upcoming traders and new traders who want to start trading

Please look after this ask SEBI to postpone this after 10 years and sir
We are living in most democratic country in the world we have

  1. RIGHT TO ASK

MY WISH IS TO YOU WILL MAKE CHANGE IN BRING AN SOLUTION AND WHICH WILL HELP
FOR FUTURE INDIA ( ATMANIBHAR )

You can talking other brokerage firms and
Make a GOOD decision sir

Thanks
MMK

15 to 25 crore not possible. my guess only below 1.25 crore under

In India why can’t 10 % of population can start investing in 10-15 years It will happen bro

It will happen bro in USA 70 % population investing in stock market right now