Sorry for the time being, have switched accounts as these things inadvertently **** the psychology and lead to loses (have already lost due to this). I have good system and internet connectivity and I am certain others too would have the same problem. However I would suggest you people create some dummy accounts, stream the data (price/volume) of multiple scripts throughout the day and analyze/tally the same EOD with the actual data feed you get from the exchanges at the server level, I am certain you would find the anomalies/divergences and why the data feed freezes at certain intervals.
All potential solutions were suggested and rejected. Additional intraday leverages were never to be allowed as per the original regulations, from day 1 back in 2000 when F&O was introduced. So essentially this isnāt a new regulation, it is all brokers being forced to followe the original regulation.
OK but what about the issue of settlement delays? That is directly hampering the trading experience and not related to leverage. Canāt the broker at least provide funds to the client for taking trades up to the amount that the client would receive later on anyway. That isnt leverage of course. Just providing flow of credit to ensure a smooth trading experience.
You mean settlement holiday falling on trading days?
Not that, man. I am talking about delay in settlement of funds that the client would receive when he exits his positions. What used to happen earlier was that the broker could fund the client for the amount the client would receive from the exchange later on when he exits his positions. When you exit your position and make a profit for example, the amount takes T+2 days to settle into your account but earlier the broker could fund the client for such an amount and the client didnāt have to wait to utilise his realised profit. He could basically make use of his unsettled funds rather than waiting for them to settle. But under the peak margin rule, that wonāt be possible. I am suggesting to @nithin that SEBI should at least allow the broker to fund the client for up to the amount of unsettled funds which would basically ensure smoothness in trading.
@nithin plz do reply. Thanks.
Hey, this plane has already taken off. There is no going back on any of these regulations. The broker associations and many of us brokers represented for months on this. None of these regulations will change on these. Like I said after the incidents at Karvy and BMA, the regulator wasnāt ready to relent.
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Fine, thanks for all the responses. But lastly, before this talk ends, I would like to know what your perspective is on the case that Wisdom capital has filed in the court. What chance do you think there is that the outcome will be in retailersā favour? Cause thatās the only hope left now.
I donāt think anything will come of that. Btw, Wisdom capital arenāt a registered stock broker, they are an authorized person of another broker.
Oh well. Anyway, thanks for responding to all my comments. A lot more has been understood by me on this matter because of your insight. Again, thanks for the sparing the time.
Have a question for option selling experts. I have been into selling intraday option straddles for a little over a month now. I keep strict stoploss(SLM orders) in the system at all times. My experience in selling options is very less and lot of noise regarding unlimited loss in option selling, option prices freezing during black swan events etc always keeps me on my toes regarding my stoploss not triggering and ending up with a big hole in my account. Do i run any risk of ruin with my SL-M orders? What is the worst that can happen to me?
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Nice Question
I would list just few points
- Yes options could hit upper circuit on bad days but you can get a chance to exit it by buying higher strike call option if you sold calls.
- I would suggest to short OTM or may be in between OTM to deep OTM option. I myself sell deep OTM option which are like more than 1000 points away in nifty for weekly contracts.
In that case the price spikes by 3-4% decided by my algo. It itself signals to cut the position and if the stop hits 2 times in a week then I stop trading for next 1 week and I just observe the markets.
It helped me during covid crash too. - Never go for monthly contracts if you are trading intraday. Those are pretty less liquid than weekly. Also, go for the contracts like 13500 13000 and not for 13300. It is because the main OI is on those contracts which are multiple of 500.
Last but not the least never do revenge trade in option selling.
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Thanks a ton Pradeep!!
Respected @nithin jiā¦ I request you not to support the peak margin rule by saying it good in long term .Try to get that SEBI or anybody else has nothing to do with individualās profit & losses. In place, the regulatory should fix the fake advisory all around & enhance financial literacy.
We are also requesting to allow with some fixed max leverages instead taking out everything.
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@nithin Donāt you think ā¦ all this is a part of serious conspiracy against the national economy & Indian Stock Market ?
@nithin Does it make any sense to deposit around 600% of the max possible loss? For eg. If I sell one lot of bank nifty & simultaneously Buy the very next strike (Vertical Spread) , the max loss is hardly around 2k in any sceneā¦
Nope, we are for leverage but certain limit should be set, if it is not checked then it is a structural risk for the markets.
After taking position for 2k, one can close hedge leg , it will put broker in complete risk so charging exposure is right thing to do.
one can easily prevent it by preferential order flow & other easy remedies. But the intention overhere looks different. The idea defenders should once flick through US markets. This silly Peak Margin concept exists nowhere else.
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btw, How much do you think is comfortable.