What is your Edge ?

[ashu1234]

This depends where you trade. I prefer a margin of less than 50% or in the best case: 0%

But that is not possible in India, as your Exchange does not take in account any hedge strategies.

So your post is valuable only for certain regions in the world, but not to take as granted for other places.

Never mind / Take care and by the way: Nifty is 140 point under the granted low you........your thread ..... / Maybe: Granted or any word related to it is not such a good term in trading / DanPickUp

I think you are missing the flow of the previous two posts......(out of context).

 

[DanPickUp]

I think you are missing the flow of the previous two posts......(out of context).

Probably. Explain the exact point or in what context my post is out of the other two post's. According to that, I will delete or adjust my post in the points or context I may miss understood or miss interpreted.

 

[DanPickUp]

Margin: http://oxforddictionaries.com/definition/english/margin

Here seems to be the miss context. I would use the word probability in the context it is posted, but it is like it is. The world still moves.

 

[ashu1234]

Probably. Explain the exact point or in what context my post is out of the other two post's. According to that, I will delete or adjust my post in the points or context I may miss understood or miss interpreted.

Well its about the margin, which you have interpreted out of context. Re-read the last two posts about the margin in discussion.

 

[ashu1234]

Margin: http://oxforddictionaries.com/definition/english/margin

Here seems to be the miss context. I would use the word probability in the context it is posted, but it is like it is. The world still moves.

Yes, you got the "out of context" thing before I could tell or post. see the time post, you and I have posted almost at the same point, so don't panic and get into the impression that I demand you.

 

[ashu1234]

But that is not possible in India, as your Exchange does not take in account any hedge strategies.

So your post is valuable only for certain regions in the world, but not to take as granted for other places.

Well FIIs, Hedge funds and DIIs here are actively hedging their portfolio from time to time. I've personally witnessed creation of delta neutral portfolio of Nifty stock which are hedged through options. Many retail and big players are actively using strategies even I've used many in past so I can't take your above post on face value who I guess have no idea what our market is about.

 

[timepass]

Well FIIs, Hedge funds and DIIs here are actively hedging their portfolio from time to time. I've personally witnessed creation of delta neutral portfolio of Nifty stock which are hedged through options. Many retail and big players are actively using strategies even I've used many in past so I can't take your above post on face value who I guess have no idea what our market is about.

I think that the institutions hedge their positions using full margins for individual positions. The only hedge allowed to the end user is a calendar spread.

 

[jamit_05]

I think that the institutions hedge their positions using full margins for individual positions. The only hedge allowed to the end user is a calendar spread.

Due to the huge turnover involved it makes sense for them to use full margin. After all, money also costs money.

 

[DanPickUp]

@Ashu

When I say: But that is not possible in India, as your Exchange does not take into account any hedge strategies, this is meant in conjunction with the margins you have to have in your account.

I am very clear that you, for example can do calendars, back spreads, credit spread. You can short future and be at the same time long the option, no problem to do in your market.

Now let me ask you one question: Doe's your margin significantly come down when implementing such a spread or hedge? Simple answer: No. At the moment you short any leg, your margin just jumps up. So you need more capital in your account to do so. This capital is now blocked and can not work.

I could move on here, but now it is your turn.

 

[ashu1234]

@Ashu

When I say: But that is not possible in India, as your Exchange does not take into account any hedge strategies, this is meant in conjunction with the margins you have to have in your account.

I am very clear that you, for example can do calendars, back spreads, credit spread. You can short future and be at the same time long the option, no problem to do in your market.

Now let me ask you one question: Doe's your margin significantly come down when implementing such a spread or hedge? Simple answer: No. At the moment you short any leg, your margin just jumps up. So you need more capital in your account to do so. This capital is now blocked and can not work.

I could move on here, but now it is your turn.

Highlighted the word which changed the very context of discussion.

And as the saying goes.....when in Rome do as Romans do, so you have to live with what exchange has set the requirements here and move on....

You can curse NSE for that, but you can't keep bringing up "options things" in every thread. No doubt they are wonderful instruments but till this market matures up no scope of your kind of strategy based option trading to the advantage of retail traders here. You have more money you are most welcome to draw strategies or else move on......