Nithin already clarified you above, for 500 cr of your position size, nothing will be effected so you need not to worry unless you have above 500cr portfolio.
when you say 500 crore are you referring to strike price*premium or lot size * premium?
What will happen to stocks like yes bank which are already trading way above the MWPL of 50%…Will they be under ban from monday onwards ??? And if yes will it have a positive or negative impact on the stock… @nithin @siva
Notional value = Banknifty lot 20 * 20317 = 406,340 Notional value of Banknifty future contract
As per the sebi circular you can trade upto 500 crore of position freely. With notional value wise
(premium+strike) *lot size for options, for futures it is lotsize multiply by ltp.
Right, they will be under ban.
No one knows the right answer for that.
Sir but SEBI circular 3(ii) states further to 3(i)… I mean I have 0 shares held on my demat and I am a pure index trader. Does the circular mean I cannot buy even 1 lot of the deepest OTM call or put? Or till 500 crores of rupees value I can create fresh index positions? Please clarify. Thanks & Regards.
You can have position upto 500 crores notional value there is no issue.
On a side note, since there are calls for ban on trading till normalcy returns, in case govt takes a call to ban trading…can you please let us know what would be the efffect on futures and options which are due expiry this month…
Andin case we have hedge positions in futures between current month expiry and next month expiry…what would be the effect on the overall trade if ban prevents us to exit the trade.
No clue what will happen to existing positions in case sebi opts for complete ban. Likely complete ban may not happen but anything is possible in the current environment.
That’s scary…thanks for the quick reply.
Does this mean that we won’t get intraday leverage for the next month on f&o index especially while shorting options @nithin @siva
Not necessarily, but lets see.
So for an intraday trader who does not trade in F&O and who trades only in the equity cash segment and has 0 shares in his demat account, the only impact will be that he will be able to get maximum 4x and minimum 1x leverage while taking a long or short intraday position using the MIS product.
Also there is no restriction on short selling in intra day equity in cash segment. Is my understanding correct?
@siva Government seems to be , quietly shut down and imposed some restrictions on general public activities from tomorrow till march 31st , so what about the market functioning !! ? will it be open or closed !! ?
What about the intraday leverage on banknifty options writing ,will it be revoked @nithin
I also have this question.
Is it possible that exchanges could be shut down till march 31st?
Take it slow, no one knows what is going to happen, as and when situation evolves we will update on our bulletin, take a break if you are not having any open positions.
If Maharastra Govt example taken , probably Market will be open , I think @nithin will know more details and can answer it
No one knows what is going to happen, we also know as much as you do, just wait and watch and pray for the best.