@ShubhS9 even that is ridiculous , going by your calculations it will be extra 10 lakhs blocked for 80 lots , specially when the difference between strike and index is 500 to 600 point
@nithin Please point this out , they are blocking the Exposure margin twice , why do they have to block it for people who are carrying positions for a few days
You sound like a fan of communism/authoritarian dictatorships.
Who are you to decide what should be allowed or not allowed? Iâm a believer in free markets and freedom. If someone has 100 rupees, he should be allowed to spend it however he or she likes to.
There is a saying âA fool and his money are soon partedâ. But who are you to decide who is a fool and who is not?
Let everyone have an equal opportunity to prove whether they are a fool or not, and whether they want to play the game or not.
Let us treat everyone like adults. Let everyone learn to take accountability and responsibility for the consequence of their actions.
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exactly, the retailers thats making profit were once poor too.
back in days when zerodha had competition thingy for top traders, the winners were common men that started with low cap not as rich hni.
indian stock trading is fairly new experience for many people, most of them entered during covid lockdown. it will take 5-10yrs to understand trading. most of them will give up and go away at the same time new generation will keep coming. may be after like 25yr we will also have lot of matured traders in indian market like west.
Hi Meher,
Will the existing dec contract margin get increased?
How it will impact position after nov 20th?
We would have to wait for the exchange circular to know exactly about the monthly contract from which we will start having higher lot sizes and higher subsequent margins. Weâll keep you posted.
and you sound like someone who jumps to conclusions about a personâs political leanings from a simple wall of text which contains what sebi could have done instead of completely banning everyone from everything because of the herd mentality of indians falling for YouTubers showing fake promises and p&lâs . Sebi could have put in eligibility requirements instead of completely banning everything and coming in with draconian moves.
You do realize All this allowing everyone to do everything leading to people losing money has now led to weekly expiry being banned in instruments by SEBI, traders like you and everyone else here who were profitable are now being banned from your trading instruments. This is why protectionism is necessary in any industry, Too many cooks ruin the broth and that applies to overpopulated,crime ridden country like India where everyone entered into trading post the lockdown HERD MENTALITY, and now losers have ruined it for the winners. This is exactly why protectionism is required in any sort of trade, and in a true capitalist market monopoly, protectionism exists and should be allowed to exist.
Example: Someone lives in a slum somewhere in mumbai or delhi, piss poor barely has enough to eat, works 8 hours a day as a labourer, decides to come in to the market after watching a bunch of youtube videos , keeps loosing capital is in massive debt. Next thing you know he tries other ways to recover debt like robbing people, murdering committing crimes. or even someone lower middle class who is in debt decides to end his life. so many people committed suicide during the 1992 harshad Mehta gig. Sole breadwinner in turn impacts the kidâs education who in turn may lead a life of crime etc disturbing social harmony.
There is enough crime, lawlessness, and overpopulation in the country to begin with, and given a chance most people wonât hesitate to grab, steal, stab from you what you or your family as law-abiding citizens have worked hard for or what you have built.
Even the us market has a $25000 PTD minimum rule for Day trading. They have put in that rule but have not banned trading instruments unlike SEBI, which is exactly what Sebi should implement rather than banning trading instruments.
The point is that those who have the means to and the financial backing to bear losses should be allowed to do whatever they want rather than completely banning instruments like sebi did now. Eligibility criteria would have been a better alternative than banning instruments.
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Banning instruments does not work.
MCX banned mini contracts few years back only to realise just how bad the liquidity problems is and now they even has NATGAS mini.
Soon SEBI will realise their mistakes and we will have even more contracts.
Lets hope that they do realize their mistake. US style PTD would be better(with pricing being reasonable in a indian context normalized using PPP framework) while retaining weekly expiry for everything. Just no expiry every day of the week rather , all expiryâs weekly but only on specific day of the week. example bn,auto,nifty 50 etc etc all on thursday or Wednesday than each on a separate day.
On the whole, so 2% of ( strike * lot size).
@siva @Meher_Smaran
If already I have the NIFTY position with 25 Qty, Due to the revision of the lot only when I need to enter the fresh position the new LOT size will be considered.
But while exiting the existing old lot Nifty still i can exit the 25 Qty, right?
So looking at screenshot that I have posted above - itâs a straddle at 25850 - will margin increase 2% once or twice.
25850 ce and 25850 pe is short. Margin is 85k.
Assuming 25 lot size for now, 2% increase is 12900. This is already too much. So is it 12900 increase or 12900 increase on both the legs amounting to total 26000 increase. If itâs the latter it will kill the ROI completely.
On both sides 2% each.
I hope you realize that Iâm not supporting SEBI banning everything and I totally agree that it is draconian. I just donât understand how âputting in eligibility requirementsâ is not draconian?
Do you want the government to put in ridiculous eligibility requirement for buying a 6 lakh car such as âYou must have at least 60 lakhs, because what if you get into a car accident and you might go into a coma and the hospital bill for 1 year will be more than 50 lakhs and what if you die, what will you leave behind for your familyâ?
Do you want the government to have eligibility requirement that you must have at least 10 lakhs to write any competitive examination for college admissions, because what if you get selected, then the fees for the college will be 10 lakhs?
There is already eligibility requirement for trading in the markets: The amount of money required to transfer to the trading account.
- If someone has the ability to transfer 10K to their trading account, then they are eligible to trade with 10K and lose upto 10K.
- If someone has the ability to transfer 10 crores into their trading account, then they are eligible to trade with 10 crores and lose upto 10 crores.
- If someone has the ability to transfer 0, they they can trade with 0 and lose upto 0.
There should be no more eligibility requirements. Adults should have the financial freedom to do what they want with their own money. Stop this elitist mentality that you know what is good for someone more than they themselves.
While in principle this looks fine, money invokes primitive emotions in people and some people make very stupid mistakes and most are stupid at the start with unrealistic expectations.
So some kind of barrier is probably good, but has to be reasonable.
Someone with very low capital anyway probably shouldnât be trading actively as it wont be worth it, but i can see people disagreeing and then we also need to define what is low.
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There is such an easy solution for this. Who are these dumb people lending money to piss poor people? Who are these dumb people giving unsecured loans to homeless beggars on the streets? Ever heard of a CIBIL score? Do you know why lenders want to check someoneâs credit history?
If lenders are lending money without checking someoneâs background, then itâs their fault for failing to do a simple background check and taking on massive default risk. Let them reap the rewards of their money being lost by fools to whom they lent their money.
The government should go after tobacco manufacturers, not the smokers.
Food also invokes primitive emotions in people and some people canât control and overeat leading to obesity, which can lead to all kinds of health problems including heart problems, which can lead to death.
Letâs ban food and letâs ban restaurants.
@tcpudpsocket Maybe eligibility requirements for eating food?
this should infact be implemented as they would be a burden on the already burdened taxpayer if they get into an accident etc, who pays hightaxes but gets nothing in return and also has to deal and tolerate the crimes, and lawlessness that prevails and they support. The government should start with birth control to begin with Draconian rules are needed there.
you dont get to tell me what i can or cannot say, going by your own rules secondly you too are doing exactly the same thing by stating they should be alllowed to trade or do whatever, how do you know what is good for them and what is not, how do you know that it wont lead to consequences that ripple through generations and most imporantly them not being a burden on the taxpayer.
already this country has 3% tax payers taking the load of rest of the country, the tax payer is not only taxed like crazy but also has to pay out of pocket for everything else despite paying so much tax. While rest of the overpopulated country enjoys free health care, free roads, free education everything.
It should be other way around where only those who pay taxes get benefits, rest all should have to pay from their pockets.
This comes out to be 27-32% extra on the current margins. A 1400 quantity nifty straddle position that required 50 lakh today will require almost 65-68 lakh with this rule. Itâs too much. Please talk to NSE BSE regarding the implementation. There should be some benifit to hedged strategies like straddle. Extreme loss canât happen on both ce and pe at the same time.
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pretty sure you have never heard about private credit and how many people who dont have cibil scores avail them
ironic while calling me authoritarian to get your point across you have completely ignored the US markets PTD rule i had linked,
you also have clearly said you(as in i) cannot say X or i cannot say Y this is authoritarian etc etc. Stop saying this. stop with the elitist mentality etc etc. How ironic calling someone a authoritarian while telling someone else to stop saying x and y thing.