Day Trading Stocks & Futures

[headstrong007]

@RadhuK
Theoretically, you are right but most of the traders are small traders, trading with multiple lots of options using few thousand capitals. They can't short even one unit of future with that tiny capital.
Most traders have less than 1 lakh capital, mostly trading with around 25,000-50,000 capital only to test the water (loss-making traders).

*********
Also, remember that we have to bear the cost of clearing two contracts even if the overall effect on the physical delivery of it is NULL.
The breakeven of the future is much higher than options.
If it adds with per lot option trading cost than the cost of trading will be big as option premium are pretty small comparing to future value.

Already traders are facing lots of unwanted tax. Why should we pay more? This is the indirect way to increase the volume by robbing the traders.

 

[Satya.]

Most traders have less than 1 lakh capital, mostly trading with around 25,000-50,000 capital only to test the water (loss-making traders).

ys sir,i'm 1 of dem
so sebi chahati ha k satya satta na khele

 

[Raj232]

Why traders are afraid of this new Sebi rule about physical settlement.?????

Problem will be only for those with naked derivative positions.

Thora margins rakhna padega account main.

Regards

Problem will be only for those with naked derivative positions. - exactly .. or for those who buy/sell equity against future. Transaction cost, Demat charges etc etc will eat into profit badly.

Thora margins rakhna padega account main. ... 50% free Cash rakhna padega account mein (at least).

 

[Raj232]

Hey this is the 34,000th post on this thread Keep it up guys.. Congrats !!!

 

[onequorauser]

Sebi mulls compulsory delivery for metal derivatives contracts


https://www.business-standard.com/a...tal-derivatives-contracts-118071000299_1.html

This move will actually be the more irrational than rational. I was just thinking about this and what happens if someone just wants to use futures to hedge the price moves. Actually speaking that is the very reason why futures were invented in the first place.
A lot of metal players (not speculators - owners of companies dealing in metals) look to only lock in the price as they already have their product in transit and want to avoid any violent moves. Not sure how this will work out for them

 

[onequorauser]

Why traders are afraid of this new Sebi rule about physical settlement.?????
1 solution.......
Supoose you bot a call in one of the stocks in settlement list.
If its oout of money at expirey ... you don't settle any thing....

If its ITM 4 days before expiry... 1 can try to book profit.. whatever the bid ask spread may be

If its deep ITM or / and has become very illiquid 4 days before expiry. now what to do....
simple solution.
short a future 4 days before expiry...
now let both of them get exercised at expiry.

At expiry ..... You will have to buy equivalent shares against Call
You will have to deliver equivalent amount of shares against short future.
so both cancel out. nothing happens. relax m enjoy

vice versa for puts

Problem will be only for those with naked derivative positions.

Thora margins rakhna padega account main.

Regards

What if I just want to hedge my stocks ? I will only have an option to either end up with buying more stocks (worth at least 5-10 lacs) or bear out any moves in the market on the concerned instrument for the last 4 days before delivery- which btw will be pretty volatile going by historical data.

I will say this again..I am ok with this happening in instruments without much liquidity but the question remains.. To what end is this being done? Is the aim to deter retail participation ? The answer clearly seems yes. So the government is mulling legalisation of betting on sports and it has been ok with doing so on horses and lottery for years but wants to deter people from doing so in stocks

 

[vikas2131]

KPIT: Clean uptrend. retested the Triangle breakout point. Now new high

 

[vikas2131]

BRENTCRUDE

COPPER WEEKLY COMEX

 

[Raj232]

Guys, anyone there on this board .. whats you take for todays Banknifty expiry.. flat.. up .. down ??

 

[afin]

Guys, anyone there on this board .. whats you take for todays Banknifty expiry.. flat.. up .. down ??

its currently playing a ping pong between 26840 & 26940 levels spot. Has to decisively breach either of the levels to take a direction. My take!


edit: corrected 26940 to 26840