And again, you have to come up with some solution to buy otm options, I know you cross 15% volume, but it has become a hindrance and worser when margin comes down n every body wants cover by buying options.
So Nithin, like US, along with reducing margin on fno, will they also bring in 25k USD entry level limitations on intraday??
And with reduced margins, won’t the market change fundamentally with only sellers and no buyers??
boss , reduced margin means , one buy and one sell then only the marging will reduced , how its only sellers, buyers also will be equal
There has been talk about product suitability (some equivalent of $25k, etc) for derivatives before, hopefully doesn’t come in the future.
Retail and HNI together equals around 38% of turnover. Out of this 38% maybe a third would be using intraday leverage. So, no I don’t think it will make as much difference as what many are making it out to be. Also people who want to trade leverage will find a way to make it happen.
For example, soon we might like the US, could buy an OTM option when trading futures or short options to drop the margin requirement on futures position. Especially more once the proposed new margining system gets in place.
Check this:
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@nithin could you please tell that how this will impact the volumes in futures and cash segment , will the market move the same way ? it used to , or we will see a lot of consolidation or sideways movement ?
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@nithin On behalf of day trading community can you guys please go to court if Sebi is incapable of understanding the consequences of its diktat.Please be rest assured,majority of small traders are not liking this dictate and wont to fight it
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Check the answer right above your question, have answered it.
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The brokers are representing to SEBI asking for some concession, atleast for smaller traders. Don’t really think anyone going to court will help, what SEBI is stipulating for is a standard internationally in developed exchanges.
Was SEBI sleeping when for 14 years it allowed 30-40 times leverage to day traders.Whole ecosystem of small traders is developed.Now suddenly we start behaving like developed market and bring down leverage to 8 times.As largest broker of India,please fight on behalf of your small traders instead of taking high moral ground.In developed market like US,insider trading and index management are also not rampant.Have we seen how Banknifty/Nifty moves on weekly/montly expiry?.Please fight on behalf of your traders.If SEBI gets even little bit hint of support from brokerages like you,they are not going to rollback
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@nithin Leverage in Equity segment in Zerodha is low,3 to 8 times I guess.With current restrictions on F&O margins,are you considering providing higher leverage in Equity,similar to Margin Plus from ICICI,where 25-50 times leverage is provided?
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So, will market timings for derivatives trading be also increased till 11:30pm…Becoz many developed markets are having their derivatives trading opened for 12+ hours a day.
Ask questions relevant to the topic being discussed
Dont ask any random point that uselessly popped in your head
We are figuring out the SEBI MARGIN restrictions and how to find a workaround
We are already pretty stressed
Dont trouble us more with your clumsiness
How is extending market timing related to or assist margin issue
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same i want to tell to RAZ , dont remember lot of other thing , still we are in trouble , putiing again and agin some other requirment we will be one of the most affected in market , lot of people living throuh market , dont discuss unnecessary @Raz
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I just discussed with my Broker… They are saying it is IMPOSSIBLE that a market can operate without some levels of margin
Compared to international markets, india is very nascent. International markets have daily expiries and margins as well.
So to say that it is in tune with international rules is not apple to apple comparison.
My broker said they are ready to pay penalty also but will provide margin
@nithin Has SEBI highlighted what is the penalty if this rule (their circular) is NOT followed ?
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@nithin you earlier said “upwards of 60%”. Then you said “you will be pleasantly surprised” implying significant reduction. Then @siva-reddy replied it will be 10-15k ish for NF. Now you come down to “>50%” !!!
I know nothing is decided yet. And like any govt decisions, zerodha product launches, Modi’s 15 lakh in jan-dhan accounts etc - we will have to wait - god knows how many months.
But have some mercy. only 50% reduction and I am out. 70-80% and I am better than before.
So plz give some constant figure.
Person can remain in euphoria or depression constantly. but now his is feeling like I will get bipolar disorder due to this mess!!!
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Is this effective in zerodha systems from tomorrow?
i will get coma cancer and tumor… Your bipolar disorder is acceptable… live with it.
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Similar to how SPAN+Exposure has to be collected minimum, VAR+ELM has to be collected for stocks/equity. This works out to be around 12.5% margin or 8 times leverage for pedigree stocks. If this rule isn’t changed, everyone has to offer within this leverage.
Only the US indices trade for more than 12 hours. I don’t think there will be any extension in time.
Check the current penalty structure for short margin for overnight positions here
https://www1.nseindia.com/products/content/derivatives/equities/penalties.htm
It is quite high, if there is a penalty structure put, I don’t think brokers can say I will pay penalty and offer. Repeated penalties mean serious action by the regulator.