We have cautioned users through a nudge. From tomorrow, we will also put clients on square off mode. New positions will be allowed only if the clients have provided the declaration.
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But your alert does not say that ! Why don’t Zerodha clarify that the clients will be allowed to square off on their own rather than assuming the responsiblity to themselves. Your Alert has caused the market to dry up completely as everybody wants go come out fearing Zerodha action.
Let us not forget that Zerodha is the largest broker and what they do impacts the market and they have to act responsibly
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Ah no. I don’t think you should declare exposure on that logic. FEMA violation is not a light problem. If I were you I would have exposure only under two circumstances
- I own US stocks or bonds denominated in US Dollar
- I have ESOPs in US Dollar
Even then there are open questions like what will happen if these stocks fluctuate, how often will you adjust the hedge etc
Can you confirm that Zerodha is issuing a clarification on this to settle the panic
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Does this applies to USDINR FUTURES . As a retail traders with average holding of 500 lots. What I am suppose to do ? What is exposure means here in terms of retail trader not able to understand it
If the circular applies only to new positions, then good sense should prevail.
Existing positions must be allowed till expiry , otherwise it doesnt make any sense
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I am also having big Currency position and am tracking what other brokers are doing, even Dhan is saying they will square off. It will be wise if Zerodha allows us to square off positions on our own.
Para 3 of RBI Circular makes it effective April 5. These new age brokers are the only lot jumping for no reason.
This is a requirement to be complied by the clients and not brokers!
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Exactly! The panic has also likely led to skyrocketing premiums, as some people close their positions
This message does offer some relief. But I will need you to clarify if we can retain our open positions till their respective expiry dates. I personally have it till April-end (i.e. 26th April)
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Same with me !
You may be misunderstanding the message. This is what Zerodha is telling.
Zerodha is saying that it will attempt to square off the positions tomorrow, not today.
Most of the other brokers as shared above are also following the same stance that they will square off positions as well.
The message flash says “attempt to close” but if you click the link, you don’t get the same wording.
To me, it seems like all brokers basically forgot about the RBI circular from January 5, 2024.
Now when NSE reminded them on 1st April regarding it, they all woke up.
Really pathetic…
Exactly what I am thinking
And now they want us to sign that its nothing their fault.
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Does this mean that we are now left to the mercy of market makers and a mass murder of retail CDS traders?
without speculators there will be no liquidity in these contracts which was already very low. RIP currency trading