Is there a way to providing selectable leverage for clients ON THE TRADING ACCOUNT in the future?
What i mean is let the client choose the leverage(1x/2x/5x/10x) on the trading account.
I don’t know how much of an overhead it will be for a brokerage, but will definitely help control risk and maintain discipline for retail traders?
What is ELM and VAR margin, please explain in simple terms.
Brokerages have to work under the rules set by the regulators. We don’t really have an option.
This is the margin which is collected to ensure client can’t easily default after taking a trade. Essentially to cover for losses that can happen.
Was the new margin system enable d …seems like i can still use the leverage
Can brokers and regulators work something out like this?
Dude use some logic.
For buying very less money required.
For selling huge money is required.
Buyers always have theta against them.
So yes, unless SEBI comes up with something like ASM for options buying, everything is inherently against small retail.
I urge sebi to make 1 lakh margin compulsory for options buying as well.
This is level playing field.
This will help save retail customers.
I think adding some additional margins for protection against theta decay will further help retail.
you should use some logic here as well. don’t you think so?
Margin for buying options? Really?
And what is this level playing field? Bring the money , only then you make the playing field level. if not sit on the sides.
Retails traders should be investing and not gambling their hard earned money. They are not professionals.
if a retail trader thinks he is so good at trading then, why don’t you join a trading firm and become a professional?. You shouldn’t have any problem getting hired ,since you have track record to prove you are good. right?. Then you get all the playing field. you make salary + bonus.
WTF does retail trader do except give money to brokers , govt and professionals.
complaining about level playing field with a small retail account is just ridiculous.
I dunno bro.
Whatever SEBI does it is always good for the system, retail traders, etc.
In ASM if you want to buy stock worth rs 100. SEBI has make it compulsory to block 200 rs margin.
This is for cash buying. Now may not be wise enough to know hoe come one loose more than 100rs if buy price is 100rs. But no SEBI babus are professionals. They figured out that one can even loose 200 if one buy a share worth 100 rs.
Who can fathom the wisdom of SEBI?
Hail SEBI!
Options buying is not at all a question here. Cause traders have been paying full amount already since the beginning and will always pay the full premium thats how it is. And its not even related to margin and stuff. But what will be deadly affected is intraday trading leverage BO/CO esp and options selling margin which will be nuts and completely irrational. ROI will reduce around 70% considering everything and thats the biggest concern.
So, if we pledge the stocks today, we will get the margin today itself?
Yeah, we are working on something as we speak.
@nithin and @siva, when will BO, CO margin calculator get updated to latest margin rules so we can get clear picture of how much margin we need to keep for specific stock and how much leverage we will be getting?
In a week or two.
@nithin
I Went through all your responses on Z connect and QnA (here) as well. I can’t agree more on “whole new options trading world with reduced margin requirements of hedged positions”
Just one concern! If the margin requirements does not match max loss for defined risk multi leg strategies (like condor, iron fly, vertical spreads…) it’s again not as good as we are expecting and it will again leave a scope for improvement in future circulars. Better hope everything becomes rationalized in this big bang change for the good for all of us. Thanks
Wait till some babu from SEBI gets an idea!!!
After this move by SEBI, many people clearly said that as a result retail will be forced to move towards options buying, and that this will lead to retail losing more!!!
So ofcourse the great shepherd that our SEBI is, it is it’s atmost duty to save retail sheeps from gambling out their money.
So wait till SEBI come to know of this peril that is ought to befall on this great nation of traders.
Well insider news is that, SEBI is about to bring out 10 commandments very soon. few are already being chiseled out and exclusively been leaked out to me.
No sir, every decision has to make economic sense, now to sell one lot one need 25000 when it requires 115000 whole profit % will change, I sell both way together only to earn 1000 rs profit with 50000, now to earn 1000 I need to increase my capital to 230000
Thanks Nithin
If not leverage on crude oil Futures at all then Atleast try and defend MIS margin if MCX come out with Circular. Because trading with NRML margin is way too unviable to trade. We can also adjust with MIS margin.
Still brokers providing older leverage. They updated in their websites, but not implemented. When will be implement these new margins ?
As per new rules for INTRADAY LIMIT, BRACKET, COVER ORDERS same margins ?