Possibility of lower margins in the near future

F&O
1

Given that SEBI’s sub-committe’s recent study on margins, can we expect a possibility of lower margin requirements in the near future?

Refer: https://www.moneycontrol.com/news/business/derivative-traders-in-india-pay-up-to-500-times-more-margin-says-study-by-sebi-sub-committee-4072141.html

1 Like
2

i dont hink so, many people here also like increased margins so that limited no of people be in the der. markets.
apart from that uncontrolled sepeculation is unhealthy. so i think its here to stay.

3

Nope. I dont think so. SEBI has only been increasing margins over the past 2 years(coincidently, ever since I started trading. I wish I was born earlier, Duh!).
While, I believe the margin for Futures is still reasonably(SPAN+Exposure). Multi-legged strategies should be treated better. The problem right now is the broker and the exchange have to take the risk in case you exit either of the legs of a strategy. Exchanges should come with an optimal solution for this.