I urge everyone to close there positions by tomorrow specially if you are an option seller. You may think that giving declaration would give you time and you can close at your own rate but think about the liquidity. Most probably liquidity will completely vanish. Today 82.75 May PE went from 0.10 to 21. This will create margin calls. No one would be in a position to bring such kind of margins and the options will be force closed at higher rates. So, whosever holding sell option position try to close it off tomorrow by giving limit order equal to the best ask price and waiting. Hopefully you will be able to exit. Donāt wait till the end of the day as liquidity may vanish by that time. Try to do it slowly but steadily
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The clarification weāve received for the moment confirms that trading in cross currencies can be allowed. The circular also says this:
However, cross currency is a part of the currency derivatives segment. Weāre trying to figure how to selectively allow trading in cross currencies while keeping the INR denominated contracts blocked for clients who donāt have exposure. Will get back when we have an answer.
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Bhai, muh pe bol rahein hai har login pe that 99% of traders are losing money. Kaunsa retain trader profit kama raha hai yaar?
Bhai mai sirf Equity & currency me trade krta hu equity me swing trade aur currency me option selling aur profitable hu 1% me aata hu ya ni muje ni pta aur aap is news ke support me kyu hai yea bhi ni pta bs itna pta hai govmt kisi retail trader ko profitable ni hone dena chhati isliye phle margin reduce hua aur ab currency ban so muje to yea news pathetic and worst decison lga abhi tk ka
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say if i hold $APPL 0.0000382 shares does it qualify as exposure and it there a feeling limit on how much can I trade on the base of this fractional share?
DO I need to give separate disclosure for all the 4 pairs in questions or just a single disclosure qualifies for them all
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As per RBI - (a) The user is allowed to take positions (long or short), without having to establish existence of underlying exposure, up to a single limit of USD 100 million equivalent across all currency pairs involving INR, put together, and combined across all Recognized Stock Exchanges;
Note: Recognized Stock Exchanges shall inform users that while they are not required to establish the existence of underlying exposure, they must ensure the existence of a valid underlying contracted exposure which has been not hedged using any other derivative contract and should be in a position to establish the same, āif required.ā
Itās clear here that up to 100 million USD underlying exposure is not neededā¦
āIf requiredā is clearly mentioned by the RBIā¦ it means the retailers who go beyond 100 million USD ,they must have a valid underlying contracted exposureā¦
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Hi Mohit,
Todayās circular on Zerodha is a bit confusing, I submitted my declaration and have Sep 84 CE.
need your help to understand I will square off my position or I can continue further.
Please help
You can continue to hold, but make sure the declaration is correct one, I mean you should really have exposure as we are dealing here with FEMA regulations.
Have you read the notification of RBI ?-
Itās clear mentioned over there that up to 100 million USD no under line exposure is neededā¦
How ever one has to maintain under line exposure " if needed".
It means if retailers go beyond 100 million USD they must have to produce valid underline exposure
Have you read the notification of RBI ?-
Itās clear mentioned over there that up to 100 million USD no under line exposure is neededā¦
How ever one has to maintain under line exposure " if needed".
āIf needed is clearly mentioned by RBIā.
If up to 100 million usd exposure need ni haiā¦to exposure ka need KB padega jab retailer 100 million usd k upar jaayega positionā¦
It means if retailers go beyond 100 million USD they must have to produce valid underline exposure
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Has anyone got the chance to exit the position. Premium seems to be very high and low volume.
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yeah, no chance of exit at this high premium. But also margins are shooting up. Very tough days 
Not now, premium is very high
@VenuMadhav, @mohitmehra, @Sensibull Any new word on this by RBI? For example, out of the goodness of their hearts, have they said already taken contracts will not be affected by underlying exposures and will go to expiry as they normally would?
better to exit now. By evening situation will become much worse. Margin will shoot and liquidity will completely dry. Be extremely careful
Currency doesnāt have any market maker concept to provide liquidity??
Ah no, RBI is clear. As Iād said earlier, RBIās stance is that this has always been the case and that this is not a new regulation.
No, they donāt.