Any update on this? is there a way we can trade US option from india?
I have my money in my US bank account and was trading in ES-Mini futures vis NinjaTrader. Now I have moved back to India. Can I continue to do trading on futures with the money I earned in US ? I am not sending any money to US from India. But I want to withdraw my profit to India. Is that legally allowed ? Similar questions are asked in this thread, but i didn’t get conclusion. Kindly share your thoughts.
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I approached NinjaTrader for opening account to do trade on ES Mini from India and asked the same question. Below is their reply. @namitjain2890 @nithin pls share your input.
“You can definitively and legally open an account here and trade the ES with us, we have many Indian clients.”
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hmm, there is a clear RBI guideline that says no right? U want to trust RBI or Ninja trader. 
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This guy (https://twitter.com/murliota?lang=en ) mentioned in one of the webinar that he trades in US derivatives from India (through his son a/c who is resident of US) . So, find a good contact in whose name you can trade legally.
How you will move the profit to India? The person who is helping you also have to pay tax in US and you also have to pay tax in India.
No… only 1 tax. US resident will be paying. He will transfer money to your a/c and I do not think there is a tax for that.
The best way is to reach out to some prop firms:TopStepTrader/Apex Trader/One up Trader, give there evaluation tests(they put you in a simulator and give you profit targets and max loss), if you clear it you get a funded account.
Now you have a freelancer-contractor relationship with the prop firm since you are trading there money and they are paying you 50-80% of your profits, so it isn’t against any of the RBI rules.
The evaluation tests cost 100$-600$ depending on the type of account you want($50k to $350k).
Also if you trade from India, you won’t be able to scalp futures in US, because of internet latency issues(Mumbai to Chicago its around 500-600ms round trip), so it actually takes more than half a second(sometimes even more) for quotes to be updated that puts you at a disadvantage.
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Gamblers are so addicted to Derivatives here that now they’re figuring out ways to go International.
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it is not about gambling it is about ROI for 3k max risk will you pay 18k .check margin for option spreads we have highest margin anywhere present in the world.
some pandits teaching to trade option spreads by selling atm option and buying away far otm option to hedge it is like selling naked option (after new margin rules came)
@siva-reddy request zerodha to talk to sebi regarding this.this is increasing market risk n increases chances of default by brokers
n request SEBI to put in Risk Based Margin System for hedged trade like in usa
With the revised margin framework implemented in June 2020, spread margins have fallen drastically.
The additional exposure margin charged is what’s higher and is added to cover the risk for all market participants.
Exposure margin is useless for hedged option trade (this is the main culprit).SPAN is enough.
1)what are brokers doing to prevent risk where client sell atm n buy otm to reduce margin,what if there is a black swan event 
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2)zerodha is preventing people to buy otm option but what about other big brokers aren’t theyincreasing overall market risk
3)you recently tweeked your system to enable easiest where you prevented client to stop transfering if they have sold shares(moneylife article).why this sytem cant be deployed to prevent selling one leg if there is insufficient margin in traders account
4)SEBI is always fearfull of retail traders engaging in Fno trades
-Change margin system for hedged trades
-allow only hedged trades for retail traders with less networth (USA also has some what same system)
-this will also increase liquity in stock option
Sebi is run by bunch of jokers and idiots like ME. I as well as the folks sitting there believe that f&o is just gambling. Traders give us all sorts of reasons to convince it’s not but we don’t agree.
The End Result is Traders keep on cursing SEBI and they simply don’t care.
Not really. But ignorance can make it so. You can trade like a gambler, but that doesn’t mean F&O is gambling.
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In one FIRESTICK you an burn your house also , and the same you can bring light for your house also ,
its all depended upon you how you are trying to use these firestick -
everybody cannot be a success in same business ( For ex- Rcom , air cell , VI , TATA docomo )
the same its will be in stock market also
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When you sell ATM and buy deep OTM, the margin benefit is as per the max loss of the portfolio.
Here is an instance.
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Nifty 16300 CE ATM Sell- 82K margin
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Add Nifty 18000 CE OTM Buy- margin reduces to 61K only as the risk is now capped to (1700*50=85K minus option premium paid)
We do allow option buy outside the range if you have a short position (for hedging)
We are working on a system in our new in-house OMS (under testing) to allow the exit of the margin consuming position first to help our customers avoid margin penalties. However, this would be something that can’t be implemented exchange wise.
At the exchange level, all orders and positions are treated individually.
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k so after implementation of oms will brokers go to sebi and say we have implemented oms which will prevent clients to square off one leg of hedged position. pls remove this exposure margin requirement for hedged position. rest we will take care off.
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Short answer is, YES, you surely can trade US derivatives from India, with certain limitations of course. You are only allowed to open cash accounts with US brokerage firms. Also as its a cash account, you have to adhere to the settlement times as well.
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Umm I mean everything seems like gambling when you dont know what you are doing. Same with long term investing. If you dont know what you are doing, it sure is like gambling
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