Do you think indian stock market will exist after September as there will be no leverage as posted by wisdom capital they have shown 30% decline in volume in cash and fno market if we compare 1st week of December with last week of November as per my opinion I think nse bse and mcx will become like ncdex
i have one que.
if i bought 1 lot of reliance fut yesterday & today i sold it.
after selling the position, the blocked margin will get free? can i use the margin to buy reliance or any other stock fut? or i can use the margin to buy only options?
The margin released from squaring-off your Futures position can be used immediately for trading without any restrictions.
ok sir , thank you for clearification.
Wisdom capital have stood up with traders.If they win will close account with zerodha and open account with them.
They are the only brokerage firm to stand with traders
2 Likes
@jashish24 bhai i am also a leverage trader , but i dont like to trade with leverage , in my 10 years + experience leverage will kill or wipe out immediately , whatever a risk management you have its will not work in long term with leverage , for example , without leverage if you are trading your loss only 100 but with leverage you are trading your loss will be 1000 , even i am not using any leverage even the option is available to me in zerodha ,
leverage is a double edge sword , i am supporting SEBI in this matter , SEBI is really try to protect the retail trader ,
making quick money in the market is not possible-but if you try to make quick money through leverage then the 90% of chance the account will be wipe out one day - trading with fear and leverage is always holding a high Degree of risk , if yes then everybody will be a rich person in india , but the reality is not
I am trading with Strategy not with Leverage
Always Trade depend upon with our strategy - The Trade Never depend upon with leverage
Agreed but the return on investment decreases.I canāt afford to bring whole amount and play in market for small ROI. Instead to stop trading is a better option.
@jashish24 i understand your mind , Return on investment Loss also increase , never see one side , the other side are really scary , i am not afraid you , in small amount you want to trade better no trade , put in MF maybe it will help you
Minimum 5 lakhs is decent amount to trade in market ,
iām also aganist leverage, but i donāt understand why arenāt they capping the leverage to max 5 timesā¦i mean no leverage is an extreme thing to do ā¦even for a hedged trade margin has gone up a lot ā¦this is totally stupid
Oh so From Sep 2021 onwards we will still have a leverage of 5x, is that so? For MIS/BO-CO on equity intraday? The way people go around creating a panic over this, it appeared as though entire concept of leverage will be done away with. Like if we have to buy letās say 1 share of Reliance for intraday in Sep 2021, we will have to pay full 2k. Meaning it will be as good as a delivery trade.
Right, In Equity segment you will get maximum leverage of 5x, while in F&O segment there will be no leverage you will need full SPAN + Exposure margin.
With 5x leverage, you will only need Rs. 400 to buy 1 share if Reliance for intraday (MIS, CO) if it is at 2k, not entire 2k.
1 Like
Yes that is the case
From June 2021 no Intraday Leverages will be provided by brokers?
From September 2021, intraday leverage in equity segment will be capped at maximum 5x and in F&O segment there will be no intraday leverage, youāll need full SPAN + Exposure margin. Explained here in detail: Peak margin requirements from Dec 1st 2020 & its effects
There are many rumors and Panic Created regarding leverages that they are going to discard it completely so was confusedā¦
1 Like
Hello, if someone from Zerodha can answer the following >
- Come September 1 2021, what will be the corresponding effect of the said changes on this article(if any) : Target and Stoploss simultaneously
- Come September 1 2021, is the following understanding correct? [I am only talking about Intraday equity trading with leverage]
2.1 CO v/s MIS :
PreSept21 : Currently motivation to use CO over MIS is that it provides higher leverage and a corresponding stoploss order(be it market or limit)
PostSept21 : Motivation to use CO over MIS would purely be that it will provide corresponding stoploss order(be it market or limit) as the leverage provided will be same as the MIS.
2.2 BO v/s MIS v/s CO :
PreSept21 : Motivation to use BO(currently unavailable, but lets say if they become available) was that BO provided both Even higher leverage than the >> CO >> MIS and that it also spawns two new legs of Target and Stoploss order
PostSept21 : Motivation to use BO(currently unavailable, but lets say if they become available) will be purely that BO will provide both Target and Stoploss order alongside the actual order as the leverage provided will be same as the MIS.
Nothing changes. You can continue to place SL and Target orders for your position like you currently do.
Youāre right about use case for BO, CO and MIS orders.
However, even now too, the leverage provided for CO and MIS is the same.
From September 2021, the maximum intraday leverage in equity segment will be 5x. While, youāll need full SPAN + Exposure margin for F&O trades.
1 Like
Thanks mate!