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

[nithin]

@maddy_Des

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.