its in the news as well Sebi plans tweaks in derivative trading rules to curtail options trading | News on Markets - Business Standard
Instead of this what they should do is ban these trading gurus from giving trading courses. This is the main reason a lot of retailers without any knowledge about the markets are entering this field. My increasing margins they are making already difficult terrible options in India even worse.
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Earlier 4x margin was there. By deploying 1/4th capital we could trade with predefined mtm loss . Biggest risk in trading is not being able to keep Stop loss because of emotions. Cover order margin benefits also not available in options anymore . . Both can make huge difference
I agree. Looks like every single Tom Dick n Harry who has not been successful in trading is now making money in crores by teaching. Wonder how can youngsters be so foolish to not verify credentials. Newbies pose themselves as Guru of markets in YouTube n extract fees from retailers. They know market takes away but this won’t go.
Unfortunately those students are burning their hard earned money or their parents money n getting broke.
Youngsters don’t care about verified credentials or audited P&L. They easily get lured by the luxury lifestyle of the trainers. It’s not about what you have in your pocket, it’s about what and how you tell everyone about the pocket.
For us it is easy to say and act like a mature person. But do you remember our school/college days when we also wanted to earn quick money to manage certain expenses. The target audience of these trading gurus and MLM guys are always the middle class students who are dependent on their families even for bus tickets. If you show them your rented BMW, they will easily believe that you are a money making machine and under your guidance they will also have such lifestyle.
Indeed, they would learn the harder way. Stock markets’ easy access through discount brokers n tools have enabled more retailers into the market. The money is being made by the brokers, agencies etc but seldom by retailers. But in the event of frustration n low paying jobs, this seems to be a way to financial independence for youngsters who eventually go broke taming the dragon. Learning is definitely good before jumping…either self, or a tutor but there’s no shortcut to success. If something works once, it’s not a strategy…it’s a chance. I like this article. Also, there’s a trend of nouveau traders who resort to youtube, instagram with just handful of months trading thinking they have got a masterstroke strategy. Many will learn hardest way. Everyone is a genius on a bull market… these few articles may help aware of few newbies:
(Vijay Kedia explains why F&O trading for new investors needs more regulation, education)
Stock Futures: Smoking may kill you in 20 years, but trading in stock futures can kill you the next day
Not only school/college going students, even adults are lured by this so called influencers. There are so many influencers who make it look like there is nothing else apart from options trading in the market. I don’t think government will do much about this or can do anything, its a persons own responsibility to be aware of all this fraudsters.
Increasing margin is not the solution it’s only a way to keep small retail traders from making good profits and allowing only rich people to become more rich.
Better sebi should find out some other good solutions feasible for small investors also.
Wouldn’t it be better to increase the Lot size?
One side they say they don’t want retail participation, but increase margin requirements for option selling, which forces retail investors to flock to option buying. And as we all know, how low probability of making profit in options buying is.
it would be better to reduce FNO Stock lot sizes/ reduced number of shares in a lot , Risk and other things reduces!!