Who are the clients and the pro

[Soyabean]

i read everyday oi fii went long clients went short. . who are these clients and pro?

[nithin]

If you visit this link on NSE website, you will be able to see participant wise trading volume and open interest. 

PRO is propreitary or brokerage firms trading on their own behalf. 

FII is Foreign investors

DII is Domestic investors

Clients are clients of brokerage firms (so all retail will fall under this). 

[Soyabean]

So we also belong to clients?

[nithin]

Yep all retail clients will be part of clients.

[Parikshit_Bhinde]

So retail are majority participants in the derivatives segment? Hard to believe. What’s the catch?

[siva]

@Parikshit_Bhinde

So retail are majority participants in the derivatives segment? Hard to believe. What’s the catch?

That is the reason SEBI is worried about, can check this.

[Parikshit_Bhinde]

But then NSE panicked when SGX planned to introduce single stock futures on their exchange worrying that they would loose volumes from FIIs. All this when SEBI is trying to discourage the segment that has majority volumes - Retail. Doesn’t add up.

[siva]

@Parikshit_Bhinde

But then NSE panicked when SGX planned to introduce single stock futures on their exchange worrying that they would loose volumes from FIIs.

Obviously NSE should be panicked as this move will be dent to it’s revenues and who knows where it may end. Also retail contribute only about little above 1/4th of total participation and also mostly net option buyers, we need option writers also for coherent markets.

[kars]

@siva

That is the reason SEBI is worried about.

The common sense may be that clients do too much speculation on the FnO market. But it is not objective enough. This list only shows the ratio of FnO between different type of participants. Should not one compare this ratio with the ratio of actual underlying holdings? What If clients already have exposure to match this FnO participation? Where to check this ? Any ideas?

[siva]

@kars

What If clients already have exposure to match this FnO participation? Where to check this ? Any ideas?

Generally retail clients won’t use F&O for hedging, at least majority opt it for speculation but I am not aware where to get exact details from.

[noob_magger]

@siva

Generally retail clients won’t use F&O for hedging, at least majority opt it for speculation but I am not aware where to get exact details from.

Hi SIva,

On 19th Feb in cash market DII sold -1174 Cr while FII bought 118 Cr. Pro also sold -657Cr. All was absorbed by Client

In the thread you said Client is client of brokerage. Does PMS or Insurance also come in Client? Or is it only retail players?

[siva]

@noob_magger

Insurance also come in Client

Insurance companies come under domestic institutions , clients are normal retail and HNIs.

[PrakshalGangwal]

hi @nithin - Is there an estimated number of prop traders (from broker and individual firms) and prop trading firms in India? We only get OI and volume data from NSE by participant type but can not use that to estimate actual number of traders in respective categories.

[nithin]

@PrakshalGangwal

hi @nithin - Is there an estimated number of prop traders (from broker and individual firms) and prop trading firms in India? We only get OI and volume data from NSE by participant type but can not use that to estimate actual number of traders in respective categories.

This is not possible to figure out. I guess the only thing here is that out of the 1000 registered stock brokers in India, only around 150 to 200 are retail brokers. But impossible to figure out how many traders are behind these firms.