Why did the exchanges publish a clarification on no additional intraday leverage?

Not by April 30th, this will probably take longer.

1 Like

@siva Any update on intraday leverage? Or it is postponed again?:face_with_thermometer:

Will update here once we get clarification.

You told somewhere that it shifted to June 30th

Dear @nithin
I have one genuine question regarding this.

  1. Will the “pyramiding” strategy used by options buyers no more possible to trade if “upfront margin collection” in FnO is implemented?

My understanding is that the “profits” that are booked are notional and “money” is not there in the traders account as of yet. So he wont be able to purchase additional lots and pyramid his position.

Also silly question: Are they really going to stop Intraday leverage in FnO?

What is pyramiding strategy? As the options become ITM, sell them and buy OTM? I don’t see any issue with this.

Stopping intraday leverage in F&O, we just have to wait for SEBI to announce. It may not go completely, but for sure there will be restrictions.

Restrictions means what
Max 3x,4x or no leverage on Thursday

can you shed some light on what kind of restrictions? or intraday margins will be vanished altogether?

Limitations in terms of number of times one can offer leverage in fo for intraday, need to wait few more weeks to get complete info.

1 Like

Something like PDT in the US market where an leveraged trader can take only upto 3 trades a week, and taking 4th leveraged trade blocks the account for next few weeks. Or else, they should be having 25000+ USD in their account to trade with leverage.

Can I expect same with equity ? means some what additional than VAR + ELM.

No, var+elm will be mandatory.

@siva

Anyway you can send notifications everytime there is a change in margin for any instrument. That would be really helpful.

@nithin How much leverage is okay in your opinion?

hmm… tricky one. :slight_smile: Personally I think it should be as little as possible. Most people don’t know how to manage leverage. As long as there is high leverage for naked trades, greed won’t let people attempt to trade lower risk - higher odds of winning strategy (like shown below).

Or Do you think something like PDT rule should apply here too

@siva any updates on this?

No new update as I know.

1 Like

@nithin @siva New circular came out yesterday, NCL/CMPL/44977. Which mentions upfront margin in advance of trade for FnO. Is this the final nail in the coffin for intraday leverage?

1 Like

Trading member means Traders or Brokers ?

If Trading member means Broker we may get margin by broker funds right ?

@nithin, @siva please elaborate the circular…

And I did not get the date from which it will be implemented.