@Arpan that may or may not be true. But FII will have a Stoploss and other criteria to ensure there losses are not huge. On the other hand, one wrong trade may result in retail blowing his/her total capital !
No one is forcing the traders to do F&O. They are free to do whatever they want. Anyway let’s not waste our time here debating cause our views will never match.
Do you understand the concept of liquidity? Do you realise that if a hedger wants to buy a put for hedging then someone needs to be selling that put? Puts don’t magically fall out of the sky. Two parties are needed for a transaction.
In USA they have Corn and Soybean futures/options. Using it, the farmers can hedge their crops. Do you think they only allow farmers to trade it? If only farmers could trade it, there would be almost 0 liquidity in those counters.
5 Likes
Yes that is true. I meant for retailers, not everyone in the market. Obviously 2 sides have to be there
wht abt contract increasing in phased manner … wl they keep it 15-20lac or going to b 25l after 6mnths?
1 Like
As per the plan published, it seems for initial phase (could be 6 months) the contract size will be 15-20L. It will then be further bumped up to 30L in next phase. Bad days for small option sellers.
Where’s this mentioned in the circular? Can you post a screenshot.
There are too many accidents lately and 95% 2-wheeler guys dies in road accidents.
SEBI pls propose a ban on 2 wheelers.
Too many divorce happening these days, and 95% time kids suffer due to broken marriages.
SEBI pls propose a Ban on marriages, and making babies should be illegal.
Too many things wrong in this world, and mostly Poor People suffers.
SEBI pls ban Poor People.
Also SEBI pls ban Life, as 95% People not happy with their life.
6 Likes
You’re right. They haven’t mentioned it explicitly in yesterday’s circular. That is their plan which they shared earlier that the contract size will be increased in phases. Traders will need to dance to SEBI’s random tunes.
1 Like
This is India and SEBI being Indian regulator will budge and allow 2 benchmark indexes per exchange for weekly as well as monthly expiry. So both Nifty and Bank Nifty will stay and so will the sensex and bankex. I can imagine that this change will come before 17th Nov 2024. Let’s see…
lets hope, bn should stay. 3 days before expiry margin rule is terrible though should remove that.
While there is no harm in hoping, an index comprising of only 11 banking sector stocks cannot be considered a benchmark, if one adheres to the dictionary definition.
They know the super basic things like what a put and call is but do they know what time decay is? How many of them know what moneyness of options is?
@Shaunsensei Nobody knows what is a time decay.
Moneyness of options? What is that? Is that a new coffee topping option?
Kindly clarify Sensei.
can anyone please explain, how intraday position limits will be monitored for equity index derivatives? and what is upfront collection of options premiums as my broker always take the premium upfront when i buy options?
Check out this video… you will get clarity…
2 Likes
Only market and time will tell if these will be effective.
thanks man
Do you guys know if SEBI’s regulations (whims) can be overturned (or have they ever in the past for rulings that affect entire markets in such a drastic way)?
Buch is only here till March 2025, and I guess thats why the haste to show she is doing something (by doing anything) as a diversion from her own corruption charges. If enough people petition, what are the chances we force SEBI to rethink (rationalize) their regulations?
2 Likes
Nothing can be done. Arbitrary regulations hurting business environment has been a trademark of the country since independence.
4 Likes