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

@siva

No, broker funds ill be blocked.

Yes, if peak margin reporting goes live this will change, awaiting what will be exact policy.

Btw, you can check this.

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Nobody, literally nobody apart from zerodha gang and a few sour investors agree that optimum level is 10x.
Keeping in consideration the amount of margin a person already has to pay to sell options even if he caps EVERY inch of possible risk.
Traders with 1cr account are also using leverage, only people who are not are the ones who practically don’t really need it (huge account size). And if thing to consider is “75 % lose money anyway” then why bother meddling with anything at all.
Traders will always have to take care of themselves, lets not pretend that losing traders will decrease or be taken care of just because margin is changed. And yes, Manas’ analogy is better than yours. You can’t directly compare it with straight business,
Traders don’t consume leverage like business, they take it for the trade of the day and it goes straight back to broker after that. Brokers can cut off the position at 80% negative mtm so drum of catastrophe goes a little dim here. Never heard of another business with similar parameters. We all know this intraday leverage was a grey area, more like a not so important area, because as long as brokers are controlling the risk for the day then it was fine. It happened cos just few brokers went to them crying about how big the potential risk in that grey area can be and they must put a circular out even if it is not necessary. Actually more because clients were leaving them because of their tiny leverage.
No good business can achieve its potential without leverage. We understand your concern is with its other side but for that a more logical route is to promote risk control, better use of leverage. People who work tirelessly to control their risk are the ones who are unnecessarily getting punished. Like market ambiguity is not enough for them.

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Are you referring to zerodha?

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It’s evident who I am referring to. And For a record they are not the only one ,but still are very few.

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This is not a news thread. People have a right to voice their opinion even if it is based on someone else’s opinion. And it was a publically available info provided by them.

It is a demerit of social media but it can’t be the reason to stifle someone’s opinion. So that means people can’t criticize other brokers here without their permission. Can’t have a healthy discussion on stocks without their representative on the forum here as who knows the companies may file a defamation suit against Zerodha.

I have no problem with Zerodha employing risk-free business methods. But not allowing a conversation (with proper sources) fearing a backlash is what nobody should accept.

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The view one of the retail broker is that - although leverage is not going to affect, the source of the margin now need to be verified and it must come from the broker’s own funds.

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Agree we are also on same opinion, just need some official confirmation, maybe in few days it should be out.

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@siva , Why brokers are not asking for reduced FNO lot sizes !!!? instead of reducing leverages , SEBI can do it by reducing FNO lot sizes to decrease the risk for retail traders , at least for FNOs :thinking:

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Yes, this also makes sense but personally I believe sebi want to keep it of minimum 5 lakh contract value so that it won’t be easy for retailers to enter with out proper education on what they are and how to trade them, I may be wrong but just my opinion.

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On the other hand they even removed the mini contracts in commodities that were inherently less risky. Like they removed CRUDEMINI which was a damn good contract for small traders or traders who are looking to take a small risk position.

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Now SEBI made Physical settlement compulsory for all FNO contracts , If SEBI makes lot sizes to 100 , its not a difficult thing in case of physical delivery , to give or take delivery of 100 shares in many of the FNO stocks!!!

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You are right , in other words SEBI intention is something & in the name of protecting retailers , actually they are hurting / curtailing the opportunities for retail traders.

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Few stocks are quoting at 10, few at 100 few at 1000, common lot size may not make sense but common contract value, I opine.

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If so let the SEBI to start educating retailers!!!, but , instead they are trying to hurt them

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Yes But SEBI can do it , many times they take example of USA market , but while implementing certain thing they go in a wrong way :innocent: i may be wrong , in USA all the Derivative contract lot size is 100 only , even for $10 stock or for Google

Yeah, US is like that, I think.

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No doubt that on topics like leverage many people’s ( including me ) view and of Zerodha are very different and on this forum they have written about it
But it doesn’t mean that anyone has right to post any fake video just to malign Zerodha’s image.
No doubt Zerodha is One of the most successful and reputated brokerage house .
Please maintain dignity.

@kgudepu

This is one (video that was shared earlier on some fraud) of the most asked queries we get - Stoploss triggered but doesn’t show up on the chart. I have explained it here.