This is not “icici’s bkg plans for the same plan ( option plus )”!
This is their plain vailla plan called “I-Secure”
On the smae page there are multiple other plans.
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@velu
I was researching on same line. I checked samco. They also seems to provide high leverage. But I was wondering why nobody has mentioned anything about them. Is it a reliable broker?
That’s the main part all the leverage won’t matter if not reliable…have found a good enough plan on ICICI that suits my requirements, will ask around more and shift to them soon
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@nithin
Is there any wrong in giving leverage (Index option selling) using such concept. What is the risk?
Option plus concept as explain by @maddy_Des
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- Deep pockets as deep as ICICISec , is required to fulfil margin requirements at exchanges.
- Giving such high leverages is not that rewarding with discount brokerage. If zerodha starts premiuim services, then what’s use of full service brokerages.
- Anyways if what @nithin is saying all along, leverage in FnO is going to go. So better wait till margin collection becomes mandatory.
any update on point 3? Or where to follow for updates…I too had read something similar a while ago
These kind of leverages are risky to entire ecosystem, it puts both brokers and clients at imminent peril. I really don’t understand what broker is trying to achieve by offering these kind of stupid leverages, for sure it is not going to do any good to clients. I seriously doubt even if 1% using those kind of leverages can sustain in these markets for over an year.Every financial guru and history says the main reason for most of the crashes/bankruptcies etc is over leverage, even in current carona times even though all companies/sectors are affected but most severely effected companies are which are over leveraged in those sectors.
Also one bad event is enough to wipe out broker and all it’s clients, Imagine a day where there is disconnection or counter orders are still in system without execution or some bad news came where the option prices jumped 100 points in one tick, this can happen but a rare event, the risk to reward here definitely won’t favor those using these kind of mental leverages.
I personally opine traders should not build strategies which requires these kind of leverages to make money because all it takes is one bad trade to ruin their whole capital.
We are not against leverages but definitely with these kind of stupid leverages.
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This has been postponed.
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This type of calculative intraday leverage is not that risky as current month Banknifty & Nifty option are mostly liquid.
In case of volatility or expiry day just increase the buffer to 100/200/300 point as per risk measure.
Don’t say banknifty option move 200 points in one tick. Or don’t allow to short ITM & one/two strike above ATM if using such leverage.
yes, It will only create risk during server issue/ price lagging or not updating.Otherwise it’s fine.
What Siva has mentioned is correct. He also mentioned “rare” events.
Trust me In last 1 year this rare event happened 4 times.
- Corporate Tax cut.
- Back to back Lower circuit in market.
You will not get chance to exit…
Bank nifty 1000-1200 points movement in a day is new normal.
Consider Thursday problem in BankNifty due to which the price became continually out of range. I think due to these reason US has pattern day trading rule to prevent small account amateur traders to gamble in Markets.
Guys dont fall on prey as leverage , i am telling honestly , how much you are intelligent in the market thats not an matter , leverage will kill and wipe out the account one day , lot of people argue i have a good risk management , its a stupid understand in the market , for exapmle . if market is more volatility . SLM will never work , see when the market suddenly move 200 point here and there its happen normal in the market. futures and option price jump immediately 100 to 150 points immediately your SLM will hit jumped price only your loss will be huge …
Honestly i am telling i can make every week 70 to 1lkahs rupees , but i am expecting 10 to 15 k only on weekely expiray , because i really scare to take high leverage in the market , i am not greedy also ,
In 2008 i with my friends total 10 people we trade together , some body jumped those who are giving high leverage , but i stick with low leverage and most of the time i will never take a leverage in the market , my other 9 friends are scalper and intraday trader making everday 20k to 25 k in algo method , now only i am in the market other 9 people lost all the money in the market , now they are working somewhere else still they are fear to come into the market ,
High leverage will not loose your money , but it some times take our property and even Life also …
Stop searching those giving high leverage , market will never try to make you rich quickly , Markets will play in Dreams and reality .
Lot of people entering the market with dreams and exit with reality face of market
always be conservative , live long and stay with the market for long term its possible only through conservative mode , Keep a Decent expectation in the market
Happy trading
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I understand sir but a good weapon is just as valuable for a trained professional as it is risky in the hands of someone who doesn’t know what they are doing…I am mitigating as much risks as I can at my end before leveraging my positions…don’t worry
and as far as the brokers are concerned…fear mongering against other brokers providing more leverage is just a sign of incompetence
Actually personally I was looking for a secondary broker. I did not wanted it to be exactly like Zerodha. May be some differentiation in product offering. Leverage looks like one of differentiating factor in Indian scenario. If you want to keep some money in secondary broker in case of adverse event like may be unable to square off position in Zerodha and need to take some counter position in secondary broker so need to keep minimum fund with secondary broker but at the same time it should serve the purpose. So I think high leverage brokers may not be bad idea in this context. Different people different requirements.
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Does increasing clients ultimately results in reducing leverage by broker??
New circular came out, NCL/CMPL/44977. Which mentions upfront margin in advance of trade for FnO. So it seems leverage is going to be history soon!
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If my understanding is correct , if broker ( TM ) have the funds then they have no issues in giving leverage .
Anyway with the margin benefits , traders may not need much leverage .