SEBI allowed to extend F&O trading till 11:55 p.m from Oct. 1 (poll only)

[bpr]

It would utterly stupid to open CM for 15 hours. It will expose a lot of people to risks while they are sleeping . Nowhere in world CM is open for 15 hours. Best thing would be to just stick with index derivatives .

So when the market is closed and you are sleeping there is no risk ??
Just because the market is not open does not mean there is no risk. You get to taste the risk with big gap up and down the nest day.
You just can't see it.

 

[headstrong007]

Big investors & FII-FPI can't properly hedge individual stocks at night using only Index Future. So, individual Stock F&O trading at night also in demand. Only concern is thin volume is some low liquid stocks where price manipulation is possible and wider bid-ask problem may arise there at night. NSE-BSE are thinking it seriously. Maybe only Index Future first.

 

[bpr]

Only Nifty Index alone is traded in SGX so why then extend Equity derivatives ?

where have u been ?
They recently started stock futures (nifty 50 stocks)and that is the whole reason for all this drama ...

 

[jagankris]

where have u been ?
They recently started stock futures (nifty 50 stocks)and that is the whole reason for all this drama ...NSE is loosing its mind

Oops I didnt know that.Thanks.

 

[bpr]

Oops I didnt know that.Thanks.

No problem I posted it the day they started but probably buried in some threads.

here is the link http://www.traderji.com/community/threads/general-trading-chat.96368/post-1270425

 

[vikas2131]

So when the market is closed and you are sleeping there is no risk ??
Just because the market is not open does not mean there is no risk. You get to taste the risk with big gap up and down the nest day.
You just can't see it.

I dnt have to manage the risk at 11.50 pm at night if market is closed whereas if market is open, ill have to . that is difference. It basically means 15 hours work day and 5 days a week.

 

[bpr]

I dnt have to manage the risk at 11.50 pm at night if market is closed whereas if market is open, ill have to . that is difference.

yes that is the point if it is open you have choice, to do something or not about your position ...
if market is closed you are forced to accept the risk and that is wrong...

 

[Loss_Lover]

The ideal price of a derivative is calculated on the basis of its underlying's price. Any arbitrage in FnO price is an opportunity ! And trading in derivatives is done to nullify this arbitrage, such that, the ideal price of a derivative and its underlying's price remain in tandem. If anybody disagrees this, please reply - it will be a new learning for me!

Being a mere mortal, I am failing to understand what the price of the derivative would be when its underlying basis closed at a constant value in CM until it re-opens.......

 

[headstrong007]

Being a mere mortal, I am failing to understand what the price of the derivative would be when its underlying basis closed at a constant value in CM until it re-opens.......

How all over the world derivative market is moving when underline cash is closed? It simply demands supply which moves the price whether it is cash or F&O. Underline is not moving F&O.
If there is no liquidity u will see the awkward price on many options contracts. Similarly, liquidity(demand-supply) on a particular future contract affects the price mainly.

Every option trader know sometimes options start moving on their own due to demand-supply only, F&O actually don't care the underline much during the intraday move. That's why in big volatility premium discount varies widely.
And 15 min pre-opening is there to take care of all this difference between Future and spot.

If you follow the F&O market closely on expiry day, specially different option strikes,
then u will easily understand F&O does not care about underline much.
Every F&O contract behaves separately according to demand-supply. And spot price closing is adjusted according to how future expired. Every day future contract doesn't care the spot, the difference is shown by premium and discount which completely depends on demand supply only.

Think it deeply you will get the answer, how Dow future is moving 24-7 when the underline cash is closed? How is SGX nifty moving nicely currently? Moving on its own due to demand-supply only.

 

[headstrong007]

yes that is the point if it is open you have choice, to do something or not about your position ...
if market is closed you are forced to accept the risk and that is wrong...

That is simple truth I have repeated many times, but no one from the opposition will listen.
If the market is open your stop loss or target will execute, if the market is closed you are helpless, wait for a gap up and down, simple.
Now, what is better idea? Protected by stop loss and target inside the system for only 6 hours out of 24 or 15 hours out of 24?

Idealy F&O should open 24-7 so that risk of positional trade completely diminishes. Then, your stop and target remain inside the system almost 24 hours. Currently, The whole world is loving the idea why not most of Indians? Perhaps most of Indians are thinking it differently. They are thinking of watching market 24-7 is going to be a bad job.
If u don't like night trading, put your stop and target inside the system and relax.