- Can capital gains made on remitted amount be used for margin calls?
- Can money earned while working in US be used to margin trade?
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I am not sure why you do not value what you honestly already have there ? If they really do allow you to do that why even bother about options or something like that anyway. Options, binary one, are banned in a lot of countries anyway and you shouldn’t go after them.
Did not get your point, are you asking us to be happy with what we have and not demand for a better system to levy margin on our trades?
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All,
Just want to understand one point, is the legal restriction only applicable to the money that is remitted out of India? If an NRI (but Indian citizen) open a margin account with TD and when he/she moves back to India (thus become a resident), can the foreign account still be operated legally? Of course, any gains will be reported in itr.
I think you cannot legally continue once you’re a resident of India.
well, the RBI circular says the restrictions are to do with remitted money only.
By the way, TD eligibility for Indian residents is that we can open a cash account and cannot actively trade in naked options (covered call is ok). so I think its not worth the hassle.
Oh, sorry, did not interpret your earlier message properly. Yes the scheme places restrictions on remittance, so this scenario should have no issues.
Regarding options, yes some hedged option strategies are allowed in cash account on derivates which are European style and cash settled, all American style, and European style which are physically settled are not allowed. That’s not a TD but a FINRA rule in the US.
So what about trading in derivatives from profit made from investing, this money not moved from india and made purely abroad, so will it be allowed?
What about opening account with CFD brokers offering betting on foreign stocks and indices . Is it legal in India, I am continuously seeing advertisement of one such online bucket shop in zee business . I think they are promoting it as game of skill.
@nithin why don’t sebi take action against them. What’s regulators take on this.
These CFD platforms are of course illegal and are based outside India, so out of SEBI jurisdiction.
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I have a different question. Unrelated to the topic. Hope you won’t mind.
How does one find the stocks under derivatives segment on the foreign exchanges? I mean where can I see the Bhaavcopy of the said stocks on a daily basis. Couldn’t find that online. I am keenly interested in finding out such data for stocks (in derivatives segment) listed on US exchanges,
If you know of this, do let me know.
Data is the most priced possession of exchanges in the US (they don’t charge exchange transaction charges like in India, but on data feed), they don’t really publish a lot of it openly. They charge quite a bomb for access to data. So unless you open an account with a broker or use a data vendor, you wouldn’t really get access to too much data.
aah… got it.
thanks for clearing it up. much appreciated.
Is it possible to do BTST in US stocks through cash account
Partially true. The exchange i.e cboe does display delayed (atleast by 15 mins) data like volume, bid/ask, OI, etc for the option contracts.
It really depends what the user wants out of the data 1. analysis on end of the day data or 2. use it for trading. Former can still be done with publicly available data.
Not sure about this. But on a cash account you might end up paying the whole value on the buy side. Sell is normally possible the next day as I suspect US does not have a demat and T+2 concept.
What is the question?
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Not allowed.
@siva-reddy
Can money made while working in US ( 1. Before nri status 2. After nri status) be used for margin trading?