Does anyone know understand the logic. For example. We can get only 80% collateral/margin on BANKBEES whereas the collateral/margin on Nifty Bank Index Fund is 92% and collateral/margin on Kotak Bank is 90.39%. Are ETF’s considered to be more riskier by clearing corporation?
i assume it might be due to liquidity and tracking error that etfs are considered more risky compared to index funds and stocks. like some etfs might have lower liquidity especially if they are not heavily traded, which equates to more risk. same way tracking errors can cause etfs to slightly deviate from the performance of the underlying index, adding an element of risk. these might be the reasons. do you see a similar pattern is all etfs?
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yah its very weird ,
I strongly believe its due to Mutual fund mafia , other than that any sane mind will not think ETFs are more riskier than individual stocks .
Sadly retail voices are so low , so no one cares .
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@TitanTrader Same pattern for all ETF’s. They are fairly liquid, even otherwise should liquidity matter so much since it backed by Unit of stocks.
@siva0 That’s a possible explanation.
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Hi, has Sensibull stopped dollar options. I was recently checking their website and I cannot see Dollar Options under Easy options anymore ?
@Sensibull Hi, has Sensibull stopped dollar options. I was recently checking their website and I cannot see Dollar Options under Easy options anymore ?
ETFs are also a type of Mutual funds. Same AMCs, who issue index fund, also issue ETFs
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