Not So Cool SEBI

What would that be? Without the melodrama please.

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Man, you are quite a character.

What’s your story? Did you have a nasty experience.

Well, I had losses, and that made me stronger and wiser. It was f*** essential.

You can also use your brain with out the haugtiness and sarcasm

I just know a lot of people who are not as rich as you, and did not survive the first blowout and still suffer from that one poor decision years later.

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We don’t really know what his/her situation is/was and this may or may not be some kind of trolling.
Debating here does affect what SEBI does and this discussion does not really seem to be going anywhere now. Its ‘me against the world’ mindset almost.

traderji used to have a lot of drama few times a year :). Perhaps just let it be …

Dude!! I took that example straightaway from zerodha varstity. Its in leverage-payoff section of futures trading. Refer this.

https://zerodha.com/varsity/chapter/leverage-payoff/

It really doesn’t matter if you bought individual house or a flat with home loan, they are essentially leverage only. You are essentially going long on the land value (NOT BUILDING, BUILDING IS JUNK , For flats its Undivided share of land) from the day you signed the sale deed. Your position ends when you are able to sell whether during loan tenture (called short sell) or after loan i.e taking delivery and selling. It makes no difference. I know real estate well cause my family has experience buying 2 flats and 2 lands in metro cities. I know so many property developers that all use bank loans as leverage.

Banks might limit your use of credit but the interest on your outstanding amount does not stop even if banks have limited credit. The interest is double digit and its interest over interest. With terms like this, its enough to make someone insolvent and make them head towards bankruptcy.

Salary and credit score has got nothing to do with trading or investing. Money management plays important factor everywhere.

Dude you didn’t read the futures section properly. To enter into a position you need to place margin which include SPAN + Exposure. This entire margin is blocked before itself.

If your cash margin is lesser than SPAN, then brokers issues a Margin call. If cash margin is lesser than 50% the broker themselves will square away your position. its quite true traders do go into negative but its very rare because its brokers responsibility to make sure they get M2M or square them away if they cant maintain margins. All these are regulated by SEBI. mostly in overnight weekend positions market gap you only lose cash margin at most. Otherwise if its mandated to pay beyond the money you have deposited in demat account(cash margin), Those 1 million brokers offering CFD, crypto wont be running signup traders or wont give insane level of leverage to random dudes in different countries. This equity market crash of 20% is basically nothing for crypto bro’s. :rofl:

Its just same like F&O. If you miss the EMI payments by 3 months during loan tenure your bank sells your house which is quite same like broker squaring away your position. If they dont recover the loan amount even after selling your house, they have enough power to take your FD’s as well. I don’t see anywhere where the borrower is having a single bit of advantage here if they keep house or asset as collateral.

read this line again. let me complete this sentence people buying an asset on loan- to sell it in future date . Well dude you yourself explained how futures contract work. Its kinda like flat earther saying the sun goes around the globe but claims earth to be flat.

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Yes. License Raj pushed India to financial doldrums in the 90s and liberation paved the way for our economy to be the sixth largest in the world. Hope the regulators bring less of regulations and ensure free spirit to thrive in the market.

As more and more profitable traders rise in the Indian retail space more people will have more positive outlook about stock market.

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SEBI or NSE can launch a paper trading portal - which is free.

A retail trader should/could spend the early years getting hands-on, before getting a Ready certificate to play in options market.

Just like we apply for learners & then driving license

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someone tweet this to sebi, very good suggestion.

I agree with the premise that a flat is leveraged buy, but you have to prove your financial worthiness to get that leveraged loan for the 80% of the price of the flat, despite flat being there as collateral for its entire worth.

Real estate is heavily regulated, when a builder starts a project, sale of up to 2 floors are withheld, RERA protects the interests of flat buyers, Banks look at land documents, buyers financial health before approving loan.
In 2008, when US banks did not check buyer’s financial health, GFC happened.

In trading if you lose money because somebody manipulates the stock, you get nothing.
Please dont compare heavily regulated industry

All these hoopla, you are missing the core point, 90% of traders lose money and 90% of home buyers end up with a house. which do you think is net positive for average person’s financial health?

Have you also noticed that banks dont give loans to buying lands because they know that people will gamblem/sepculate if left unchecked. (even if your credit score is good).

people buying an asset on loan- to sell it in future date
Please note my data point to, 90% of traders dont know what they are doing and lose money.

I understand your intentions, but paper trading can never replace real trading.

Paper trading does not come close to simulating the flight/fight instincts the real trading evokes.

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maybe i am troll, may be i am not.

I just witnessed lot of scams and know how intelligent an average person is.
I am just recommending installing guard rails so that people dont wreck their lives chasing false dreams.

Maybe waali baat hi nhi hai bhai. Tu hai hi illogical troll.

FnO is a 0 sum game. Kuch bhi gatekeeping/kuch bhi entry rule lagao, hur baar koi na koi loss lega hi.

The best thing to do is keep minimum account balance rule of say 5-8L.

From my experience you need atleast 5L to adjust positions and usse kum me you are taking too much risk.

Uske alawa koi bhi rule lgana market ke health ke lie acha nhi hai.

I love rules of usa market of PDT,need to have certain balance before initiating short position in options/buy or sell futures .can do spread trading by paying only span margin for micro account size n follow pdt rules so you dont over trade. it is a nice balance overall

  1. Banning is the easiest thing any one can do , if your lazy and can’t solve or can’t bring regulations then banning is the easiest option.
  2. Banning will automatically bring parallel market, dabba trading , binary options etc will flourish. Similar , thing when state banned liquor, gambling ,tobacco etc, things are available in parallel market at premium price. When same govt, can earn taxes and helps to reduces tax burden on existing tax payer. This further increases black money,crime as you have launder money by some other means.
  3. I am totally against banning any marketplace as nothing has solved the problem in long run, only regulations, law/order and checks and balances does.
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I vote for “Rehab for account blowers” :rofl:

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Rehab with profitable traders so that account blowers learn how they can make money trading fno :sweat_smile:

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I don’t think SEBI would introduce any unwanted regulation since F&O trading is a huge segment. Some kind of intervention is fine to prohibit excessive speculative trading in derivatives.

You are talking about minimum capital to do trading.
I am talking about rule to test financial strength before starting trading.

How are we different?