Has anyone observed that the volumes on exchanges have dropped significantly & the markets are way more volatile. Look at how Nifty Index has moved during Intraday.
This is just Phase 2 of the new Peak Margin rules. Imagine what might happen when we reach Phase 4.
It has really impacted the way I trade. Lesser the liquidity, more volatile the markets behave. There is also more slippage than what it used to be before. Executing Market Orders is a nightmare.
This rule was made to protect retailers from taking excess leverage & stop blowing up their accounts. But from what I think, if markets remain this volatile, sooner or later retailers will lose & they might start to shy away from trading. As far as I know, there has never been an incident of any broker defaulting. I don’t understand the necessity of bringing such strict guidelines.
@nithin can you please throw some light in this regard? Will volumes pick up eventually? Will there be enough liquidity like it used to be before? or will this be the new normal?
You’re in markets for so many years now. So I am troubling you with all these questions. Please do respond.