Trading Derivatives in USA from India

No, you cannot. 5% is the maximum for individual. Exchange will generate an alert based on your PAN number end of the day.

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for banknifty i see 5% o.i.limit is around 1000 to 2000 lots ,if i had to increase quantity can i take position in different strikes with 5% limit or is there some market wide limit upto which an individual can take trade?

market wide limit. You will have to do it from different accounts (PAN)

Hi Nitin,
What if funds are not remitted from India?
E.g. An individual working is US has been doing options trading in US. When he moved to India, He already had funds from his US earnings. He continued to trade on same & never remit funds from India to US.
That should not fall under purview of “liberalized remittance scheme (LRS)”
Could you please share your opinion?

Are you an NRI or Indian resident who is not residing in India?

Hmm… Tricky one, but yeah technically it would not be part of LRS. If the clients status changes from non-resident to resident Indian, can you continue to hold an account like that is the question to ask?

In India, when a client status changes from resident to non-resident, he is required by law to change all bank and trading/demat accounts to NRI.

@TAXIQ.IN would you have an idea?


Yes we need to change the Bank account as for Non residents , the type of bank accounts are different.

Is there a way to do it finally?

If a cousin gifts me in USD or CAD can I use that to trade in CME products?

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@nithin how about buying citizenship and then doing it(assuming that country has no issues with its citizens trading US derivatives)

You can check with that particular country’s regulator.

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Any update if you guys found a workaround for trading deerivates in US market/using a margin account? Any of you were able to create a company in free zone or were you able to directly trade with a US brokerage? Please let me know. I’m in similar boat and would like to know if you guys found a solution. Thanks.

What is this cost related to? Do you offer any such service that helps in setting up legal entities/companies etc for trading or is this the cost incurred if we try to pursue that option individually?

Can you please share it. Some of us are willing to shell that amount if it means doing everything legally.

Is it true that margin required for hedged strategies in US markets is very low and practical as compared to Indian markets.

Yes, it’s comparatively less.

But it’ simpler and better to stick to Zerodha.

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For hedged strategies, you only have to block the maximum risk amount that the strategy can lose. So it’s significantly lower.


Please share the solution.

Can we all just not request NSE/BSE to start the global futures(SP500,Dow,Nasdaq) again in extended trading hours till 12: in night. Or request RBI to allow trading in margin account in global market. If we all jointly take effort then it might be possible.
Please share your views.

It costs 11 lakh to setup.