Came across this article containing excerpts from a new book about the NSE Co-location scam.
Some of the figures mentioned look a bit mind-boggling. Is there any way to independently verify these claims/figures?
“OPG churned ‘prop trade’ volumes worth a whopping Rs. 26.64 lakh crores (approximately USD 484 billion based on a conversion price of Rs. 55 against the USD) in the equity derivatives segment between 2010 and 2015.”
I haven’t read the book. Just talking about turnovers.
If you look at F&O turnover as notional (contract) turnover, it does look quite massive. Let me give you an example, if you bought and sold 10 lots of Nifty options trading at say Rs 10. Your premium required to buy this is Rs 7500. So you generate a premium turnover of Rs 15000 with this buy/sell trade.
If you look at the same trade as notional or contract turnover, 1 lot of Nifty ~ Rs 10lks contract value. So buying and selling 10 lots will generate Rs 2 crores turnover.
So yeah, with Rs 7500 you can generate 2 crores in one trade. You do 10 trades, that is Rs 20 crores notional turnover. 80% of all turnover on the exchanges are from options. So some small traders also generate tens of crores of notional turnover daily. I think if people are looking at turnover, the best way to do it is by using premium turnover.
can you give some insight about daily actual turnover in indian markets , also it would be nice if you give approx of how much margin is deposited(blocked) in FnO segment on daily basis across all participants , just an approximation.