Finvasia

[traderniftybull]

@ Finvasia

Are you going for a single (money) account for NSE and MCX, like some other broker has started
Please reply soon
Thanks

@ Finvasia
still awaiting for your response

How much margin is required for 1 lot Crude and CrudeM, intraday and positional
Please specify
Thanks

 

[7rajsingh9]

I am also disappointed with small leverage with BO/MIS. For MIS most other brokers are giving at least 40% even 33% benefits, but in finvasia, it is 50% ).

But, I understand that it is very hard to survive with 'zero brokerage' and no hidden cost within transaction charges(in the name-clearing charge) like Finvasia. They are the only one with absolutely zero brokerage and no hidden condition.

If they stop those little earning alternatives, i.e extra charges for offering extra leverage they may not survive in long run. Then, the loss is for traders- specially high-frequency traders, or volume traders who need to average many times.
So, we must not be too hard on them on this...Let's understand the situation..

***********

At least, I can give, One suggestion to Finvasia which I think unfair. :-

I think option writing leverage must be at least equal to MIS with paid leverages packs. There is no way that 1 lot option selling has more risk than selling 1 lot future. No broker is charging more leverage for option selling than future. It's unfair.

With intraday paid leverage:- Option selling leverage is much lower than future. Like Option 2X vs Future 3X (bronze). Option 3X vs Future 5X(platinum). How absurd is this!! If we are paying for leverage then we must expect at least a fair deal....

I guess finvasia does provide higher margin for a price

 

[Finvasia]

I am also disappointed with small leverage with BO/MIS. For MIS most other brokers are giving at least 40% even 33% benefits, but in finvasia, it is 50% ).

But, I understand that it is very hard to survive with 'zero brokerage' and no hidden cost within transaction charges(in the name-clearing charge) like Finvasia. They are the only one with absolutely zero brokerage and no hidden condition.

If they stop those little earning alternatives, i.e extra charges for offering extra leverage they may not survive in long run. Then, the loss is for traders- specially high-frequency traders, or volume traders who need to average many times.
So, we must not be too hard on them on this...Let's understand the situation..

***********

At least, I can give, One suggestion to Finvasia which I think unfair. :-

I think option writing leverage must be at least equal to MIS with paid leverages packs. There is no way that 1 lot option selling has more risk than selling 1 lot future. No broker is charging more leverage for option selling than future. It's unfair.

With intraday paid leverage:- Option selling leverage is much lower than future. Like Option 2X vs Future 3X (bronze). Option 3X vs Future 5X(platinum). How absurd is this!! If we are paying for leverage then we must expect at least a fair deal....

Suggestion to Finvasia:-

Cover Order ENTRY with NSE NOW currently has ONLY ONE option:- MARKET order.

There must be an additional option like, LIMIT ENTRY for COVER order.
Addition of SLM ENTRY to would be great also with Cover Order.

Hi Headstrong,

You have a valid point. However, please note that options are treated differently by the exchange, in terms of limitations they impose on them. One such example is the maximum number of lots that can be executed in the option in one single order versus that in futures.

From a broker's prespective, one of the big risk we take is that of credit risk to the client. As per our experience, in majority of the cases when a client account goes into negative, there is virtually no recovery of the loss and that is the risk that we take on our books when we extend leverage to our clients.

By and large this risk is offset by managing RMS actively, however it is much easier said than done.
For example, Options in India tend be Liquid only when they are "AT" money or "Near" money. If there are major moves in the underlying stock on any given day (for example a corporate action, earning or any major stock specific event) an option that is "At or Near" money will very quickly go out of money and as a result suffers from sudden liquidity lapse. In many cases when this happens, an option can get very illiquid and can even go into a freeze much faster than a future's contract (for example PSU Bank stocks in the recent recapitalization efforts by the government). These particular risks limit us on how much risk we feel comfortable with as a broker / clearing member and how much leverage we can extend to our clients on this specific product.

We feel an average investor shall be very comfortable with Free leverage of 2X in MIS, 10X in Cash or 2X in CNC. There is no cost for this added leverage and its given by default to every trader. Additional leverage, over and above, what is given for free has a nominal cost that acts as an "insurance" for us, based on the additional risk that we expose ourselves to.

Nevertheless, we are happy to keep your suggestion on file and shall consider it when we plan our future products. Lastly, BO is simply a hedged trading facility yet exchange requires full margin. As a Clearing Member, there is no additional benefit on MIS/BO. Hence, there is no additional leverage.

Thanks

 

[Finvasia]

@ Finvasia

Are you going for a single (money) account for NSE and MCX, like some other broker has started
Please reply soon
Thanks

Hi traderniftybull, Yes, we are waiting regulatory approval for the implementation. Will keep TJ members posted on the development. Thanks

 

[headstrong007]

Thanks, Finvasia Team, for the detailed reply.

Yes, stocks options are not liquid enough and have the larger risk for RMS, u can skip it.
I was talking about mostly traded Index Options which are very liquid and most traders use them. You can consider about giving little extra leverages on Index Options Only AT & NEAR the money strikes, which are less risky. It'll increase your turnover too.

I understand that it can take time to implement extra leverage to the only Index Options. Take your time. Most traders are using mainly Index Options, high volume traders are also concerned about liquidity problem in the stock options.

 

[Raj232]

Dear @Finvasia : Is there MetaTrader5 (MT5) platform integration available with Finvasia ? Thanks in advance !!

 

[7rajsingh9]

Hi finvasia

How do u manage to pay salaries to your staff with free brokerage

 

[cloudTrader]

Dear @Finvasia : Is there MetaTrader5 (MT5) platform integration available with Finvasia ? Thanks in advance !!

Hey Raj,

This will be good , however we would only be benefitted much when NSE accepts MT5 , isn't it ? or I am missing some point in use of MT5 even when it is only approved by BSE ?

 

[Raj232]

Hey Raj,
This will be good , however we would only be benefitted much when NSE accepts MT5 , isn't it ? or I am missing some point in use of MT5 even when it is only approved by BSE ?

Not sure what NSE is going to do, but stocks are traded on BSE as well Derivatives volume on BSE is almost nil if not nil already.
NSE might have to follow quickly as business would move to BSE eventually...

Lets see what the broker houses like @Finvasia have to say.

 

[headstrong007]

@cloud
however NSE would only accept MT5, when they feel insecure by the popularity of MT5 in BSE, isn't it?
So, let's make MT5 popular in BSE first.