Definately F&O trading is some noble, philosophical pursuit. Damn sure about it .
If you look with curved glass everything looks curved only .
How can you say F&O is Leveraged gambling ?
10000s of companies participate in F&O .
Infosys on weekly basis use F&O to guard against Dollor movement coz entire modus operandi based on dollar - rupee price movement , How can you call this gambling ?
According to you all these companies should not hedge and just live as it is against any natural and human made calamities . if you ask me not hedging is pure gambling .
F&O is a hedging tool and how like criminals use knife to murder people as against cutting the vegtables , that doesnât mean you Ban knife right ?
There is a difference between individuals using F&O and companies using it. Companies use it for hedign - individals use it for quick money.
You are seriously compared Infosysâ hedging to random retail traders torching their savings on weekly options? That is not an argument, that is delusion.
Corporate hedging is a calculated risk tool. Retail F&O gambling is people pressing shiny buttons they donât understand. Slapping the same label on both does not magically make them the same thing.
And that whole knife analogy? Please. SEBI is not banning the knife, they are just telling people who keep stabbign themselves to stop waving it around like geniuses.
If you honestly think your weekend-warrior options trading belongs in the same sentence as actual hedging, you just proved why the rules exist in the first place.
I all-the-more strongly believe the weekly expiries should go.
If they were just âtellingâ, that wouldnât be an issue. They are effectively âbanningâ by removing weekly expiries. It is exactly like banning alcohol or other sin taxed items. The act doesnât need to be noble. Freedom implies freedom even to hurt yourself. Without it, freedom doesnât mean anything.
This is incorrect. Hedge funds dont only use it to hedge, they do trade. If derivatives were only used to hedge, there wouldnt be enough liquidity for hedgers. Trading is what makes it all liquid. All traders (hedge funds, retailers) involved together make it all liquid.
I am into real estate , I have very small firm . But my clients decision making and real estate price points are completely depend on the how nifty is trading at . when Nifty is high my net selling point is way higher comparatively .
So I hedge nifty which is not at all related but thatâs the only way I can hedge .
similarly in our investing community one of my colleague he hedges against nifty as he holds Gold , very small quantity but it always works for him .
One other colleague he holds huge investment in equity naturally he wants to hedge against nifty fall .
Since you wore green specs whole world seems green but thatâs not the case , your argument was true 10 years back but now investor community is so much educated in fact you can see the number of videos on hedging and views on it .
Also today average trader is well informed and educated especially on platforms like Zerodha varsity and many other education platforms .
Also the argument weekly trading should go is like " you are allowed to murder on Sundays " , again if weekly is banned , how will it solve gambling ?
If you are a real warrior against gambling have you ever commented on real gambling that is being allowed in Kerala / bengal ?
Yes, The name may be misleading for some, but they use a wide range of strategies, many of which do not involve pure hedging and can take on high risk
