Day Trading Stocks & Futures

bpr

Well-Known Member
Have you seen my above post the doc by NSE?
It says Stock Future margin will increase in four phases, 1.25, 2.5, 3.75 and ultimately 5% by Nov 30.
So for tata steel it is probably another 5% increase of total contract value for open positions.

Probably current NRML for tata steel is 13.75% it will increase by another 5% so total margin will be 18.75%
- its 36% increase for open positions. All other intraday margin like MIS, BO , CO would be adjusted in the same ratio according to new NRML @18.75%
yeah I know but look at Maxx's post there is update to the ASM which will now be implemented in a different way ...
hopefully it will be lesser increase than the original idea

here is excrpt from nse circular

"Instead of adding the Additional Surveillance Margin as specified in the abovementioned circular dated September 01, 2018 to the Exposure Margins, Price Scan Range (PSR) used for computation of Initial Margins shall be amended, in steps, to increase the coverage of risk arising out of change in underlying Index / stocks to cover risk for 10% change in underlying indices and 17.50% change in underlying stocks. "

I think this is exchange way to dilute ASM and keep SEBI happy ...I may be wrong ...I don't fully understand this ...
 
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headstrong007

----- Full-Time ----- Day-Trader
yeah I know but look at Maxx's post there is update to the ASM which will now be implemented in a different way ...
hopefully it will be lesser increase than the original idea
Sebi diluted the previous FPI regulation today after understanding the anger from FPI.
I hope SEBI understand bad effect in liquidity and hopefully ASM will be implemented in a different way than the original idea.
 

headstrong007

----- Full-Time ----- Day-Trader
yeah I know but look at Maxx's post there is update to the ASM which will now be implemented in a different way ...
hopefully it will be lesser increase than the original idea

here is excrpt from nse circular

"Instead of adding the Additional Surveillance Margin as specified in the abovementioned circular dated September 01, 2018 to the Exposure Margins, Price Scan Range (PSR) used for computation of Initial Margins shall be amended, in steps, to increase the coverage of risk arising out of change in underlying Index / stocks to cover risk for 10% change in underlying indices and 17.50% change in underlying stocks. "

I think this is exchange way to dilute ASM and keep SEBI happy ...I may be wrong ...I don't fully understand this ...
Actually the new statement is not going to effect the index or most of the liquid stocks with min 12.5% margin group earlier.
With new statement, they want to say min margin is 10%[same 2% increase for Index above previous 8%] for Index and minimum 17.5% for stock futures[ above 5% for most of stocks with previous 12.5% min margin]. Exactly same as the September 01, 2018 statement as it was the minimum.
But the stocks which have higher margin than 12.5% then may skip further 5% margin increase and consider with less ASM margin increase so that the min 17.5% rule followed. So for the stocks already with higher margin the ASM effect may be less than 5% but you can see most of the big popular stock was in 12.5% range which is now 13.75% all was heading for 17.5% the minimum.

I think the modified statement have no effect with Index too yo can see the current NRML is 8.5% which will be exactly 10% after Nov 30.

For most of the liquid stocks it is going to be 17.5% by Nov 30 which are currently 13.75% from 12.5%.
Its 1.25->2.5->3.75 & 5% increase by Nov 30

No effect of new statement for your Tata Steel and mine Reliance and NF,BNF.
 
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sanju005ind

Investor, Option Writer
SELL on HIGH & Fresh short below the break of the low is ideal trade unless short term indicator changes to bull. ;) Catching a falling knife is risky you know.
Shorting around 26050-150 band is ideal trade for me with a small stop if price tries to test 200 DMA. :DD I know how the bear market moves and slowly gains momentum, they need to trap the bulls first. Today bears trapped bulls in the initial hours of trade very well, they will try to do so again.

Bear market correction (very quick up move followed by a sudden bigger down move) is usually very difficult to trade using long side. Many pro traders even fail to catch the falling knife.
My mistake I was not clear. My entries are conservative.After the initial break of 200 EMA I would wait for a restest(which may come or not) and fail to sell. I am happy to miss in case the retest does not happen.
 
Anyone else faced any issue in Airtel 4g mobile Connectivity yesterday when the stocks were getting butchered...or it was for Dehradun area only..I was having problem in making trade due to this issue....
 

MaxX

Well-Known Member
I know that it is span margin but as a bank nifty weekly option trader(writer too) I see by definition ITM is 5% from last closing price, which is very big range and almost all strike under +-1300 pt ie 2600 point range(said above). I am not considering OTM.

Yes OTM margin would not increase much but it's wide range of ITM which will effect more. Many option writers mostly write most trade able Index Options which is usually under 5% of range ie ITM.
You are right about OTM also OTM ASM is only 2%. ITM ASM is 4-5%, more than double of OTM.

As a trader I usually write options with high premium for next 2-3 days move, usually weekly options, mostly all of them belongs to ITM (strikes within 5% of price range).
Buddy, please read up on how Price Scan Range works for Span Margin.. There is no 5% OTM concept like in first circular.. Basically the ATM and ITM options would see the full 4% increase in margin.. and each strike further would see lower % of margin ..

yeah I know but look at Maxx's post there is update to the ASM which will now be implemented in a different way ...
hopefully it will be lesser increase than the original idea

I think this is exchange way to dilute ASM and keep SEBI happy ...I may be wrong ...I don't fully understand this ...
You are right bpr.. original circular has been diluted and much more sensible now..
 
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Was turning out to be a very wierd month to say the least. Since the inception, writing wasn't happening only. With every shift in the strikes of short strangle there was premium loss as well as MTM loss. Finally at peace today. In the absence of strong writing for good 3 weeks, the effect was sure to be something like today.
I actually thought that a day like this could have been difficult on the writing front. I mean the put side wouldnt have given any time to exit. Or am I missing something..
 

vikas2131

Well-Known Member
Buddy, please read up on how Price Scan Range works for Span Margin.. There is no 5% OTM concept like in first circular.. Basically the ATM and ITM options would see the full 4% increase in margin.. and each strike further would see lower % of margin ..



You are right bpr.. original circular has been diluted and much more sensible now..
So basically everything is same expect for OTM options . I guess it would be same stock options too but what about futures ? Full 5 percent for stock futures ?
 

TraderRavi

low risk profile
So basically everything is same expect for OTM options . I guess it would be same stock options too but what about futures ? Full 5 percent for stock futures ?
yes already 1.25% increase in span margin for stock futures from Sep 14 started , next 2.50 % from Sep 28 then 3.75% and from Nov 30 full 5% increase in margin.
Index future margin increased from 8 to 8.5% and final is 10%. so its 25% increase in margin for NF/BNF. and 40% increase in case of stock futures.

Tatasteel @ 608 margin required was 80000 after 5% increase it shall be around 115000.
BNF @ 27000 margin required was 86000 after increase 108000 per lot.
 
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