Trading Derivatives in USA from India


How ?, What setup? Explain in detail.


If I have rental income in USD from a US property can I use it to trade abroad?


Bro can people living in USA temporarily can trade in derivatives?


Just trading in US indices is not enough for most of us, it’s about liquidity and their margin system at least for me. Regarding requesting RBI, it’s a much bigger complicated matter (Read LRS to understand) than just requesting RBI. India cannot afford this much money leaving India which impacts the economy as well as the exchange rates. one of the few reasons that I could understand. There might me a dozen more reasons for these rules.


But only if you leave India with a immigrant Visa like student or work visa, that makes you a NRI.
So yes NRI can trade in US.

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What do you mean by derivatives, do you mean normal stocks?
Well interactive brokers allows to do intraday trading of us stocks only using cash account, well what I found from asking an expert, they say its legal.


Hlo Namit bro can we open an tdameritrade account in India


Please replay bro it’s urgent my number 8919873945


Yes, TD ameritrade will open an account for you, with proper formalities, but you’ve to take care of RBI laws.


What are the laws bro that I need to take care of


Please go through the thread, everything is mentioned above discussion.


Suhel bro you should not post contact number it may be deleted ,fiscal Laws are Very strict better trade in Indian markets


Very true. about the margin system in USA
Actually, we should try and request SEBI to implement such margin policy in India (Why the hell should I give 1 lakh margin for a spread in which max risk is only 10K…?)

@nithin bro, you being the largest broking house in India; why don’t you take up this matter with SEBI ? You have the credibility to put such valid points infront of SEBI and other decision makers…

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yes @nithin @siva, please take up the initiative to push this in India. I have seen articles saying SEBI is aware of high margins in India, but are they going to do anything about it?


:slight_smile: if only it was that easy.


Yeah, but then starting India’s 1st popular discount brokerage wasn’t that easy either, isn’t it? :wink:

As a trader community, we can’t expect new initiatives from those old brokerage houses. I (and I am sure many other serious traders in Zerodha) will be ready to play our part , but need someone with credibility to take initiative with the regulators.


The regulator doesn’t want retail to trade derivatives, I don’t think institutions have too much problem with higher margin as they will have huge portfolio to provide as collateral.


But then again due to higher margins liquidity is dried up considerably in markets because of which even people having enough margins will and are facing higher impact costs which I don’t think is good for markets. And again physical settlement has made this worse , specially for options market.
Also recently sebi had set up committee to review margin system which showed that margin required to trade is highest in india as compared to other countries.


Yes, but isn’t this very short sighted, this market needs liquidity, if I sell or buy an option spread, I provide liquidity at 2 strike prices plus I reduce my risk, take as much margin as required for naked option, but hedgers should be incentivized as they provide liquidity and reduce systemic risk! why is this so difficult to understand for SEBI or am I missing something? I don’t think it’s SEBI responsibility to spoon feed retailers. Yes, protect them from illegal activites, make sure the market is liquid, but don’t teach them how to trade.


True. On one hand SEBI doesn’t do anything serious against dabba trading, while they penalize exchange based traders with extremely high margins. Indirectly, they are sort of promoting dabba trading