Why cant a broker use his own capital for providing leverage. Since it is between the broker and the trader what happens at this end it is really unfair that this is not allowed. It is possible that this could be raised to the SEBI again.
Secondly, if their have been malpractices why hamper an entire community because of malpractices of a few.
Thirdly, this will be very unfavourable for the retail investor since option writing/selling will require huge margin. Unfortunately people may be pushed to option buy or other strategies or risking positional trades and playing into the hands of stock market big guns.
Instead of safeguarding the interests of the retail investors don’t you think SEBI is putting them at a high risk because they will use a big capital to take a position and may loose all.
Request you as the leading and top brokerage firm to take the issues, concerns of the retail investors to SEBI and find a solution for them
So basically there will be nothing like intraday in Options Selling/Writing or Buying since the amount to be paid upfront will be full. It will be like a normal position. Is there any way around this for retail traders ?
India is the only country in the world where initial margin charged in the F&O segment consists of three margins. All other countries charge only SPAN margin
Is there absolutely any ray of hope , with talks and tone of SEBI ? @nithin@siva
That we may be able to get leverage Intraday for Index Option Selling.
Their intention is originally towards Cash segment.
Maybe Peak Margin reporting would be needed for Var+ELM only , only for Cash Segment. Not for FnO.
Are Brokers /Trader/ representations completely powerless in front of SEBI.
What is the appeal being planned by Brokers against this.
Are propsals being presented to them :
Declaring trades MIS upfront , MIS risk calculation would be different from Overnight risk calculated in Var+ELM or Span+Exposure.
Using Brokerlevel CoverOrder/StopLoss Order setups / Money assurance by Broker
Broker Assurance that its not another Clients fund
…
Can we have any positive news in this / any hope ?
I am against Over-Leveraging and against Under-Leveraging , I determine the PositionSize as per my Drawdown tolerance and MoneyNeeded to take trade.
@zerodha might be at a disadvantage if traders start using Far-OTM hedge as an alternate to Naked selling to reduce margin , considering they are blocked in Zerodha (being largest broker).
To all those who are having panic attack due to this issue as very livelihood is in question, I know, that you are desperately searching for some way forward.
I suggest you sit on “Amaran Uposhan” infront of SEBI office.
I most graciously am ready to fund it. I will pay for pandaal, Bichhayat, Sound system, Posters, Banners etc .
In return you will be required to “share your trading strategy”
If your strategy is so secret that only nuclear codes of US are more secret than this, then you should rather sell it to some hedge fund for millions and retire early.
Kaiko iss SEBI-Bebi ke zamele mein padna.
I still believe that there is a ray of hope left. SEBI chief’s (Mr. Ajit Tyagi) tenure is going to end by August 2020. Once the new Chief appointed if all the brokerage firms try seriously things may move in a positive direction. Right now, it is a loss-loss situation for both brokerages and retailers.
What is the exact penalty on non-payment of upfront margins. Is it in terms of money or what ? It should not result in a scenario where some brokerages continue to give margins by extracting the monetary penalty from the traders !.
That’s the main issue, if people will bring in more funds that’ll be same as positional, they’ll carry the position thinking funds are being used same for intraday as well and gap up/down will wipe the capital.
other way is to hedge the position and that doesn’t make sense for intraday so you’ll carry positions anyways. and there comes an issue with zerodha not allowing strikes to be bought to hedge. so you’re stuck if trading only on zerodha you’ve no chance of doing anyworkaround as to hedge the far otm strike would’ve been blocked for buying.
this is my biggest and the only problem with zerodha right now. sometimes they gives range of mere 200 points. that’s insane! they’re practically saying move to other broker, we’ve our hands full and reached OI limit. @nithin have to do something about this as they don’t have control over SEBI, atleast allowing far OTM strikes would help hedge and reduce margin requirements drastically.
I’ve already done that but zerodha’s system is smooth and simple. would love to do all the trading on it, it wasn’t a choice but had to move to other broker due to OI restrictions.
