Which brokers give Highest Exposures for POSITIONAL Option Writers?

MewarLion

Active Member
#11
@headstrong :

How can a POSITIONAL option writer get overnight exposure? As far as I know, as soon as we carry over the position, we need to pay full margin with all the brokers.. (and even keep 50% margin as cash equivalent/liquibees etc) to fulfill 50:50 cash to collateral margin requirement.

Correct me if I am wrong? I have been writing OTM nifty options (positional, atleast keeping them for 35 days) from past one year by paying FULL margin (40K per lot for Nifty options). If I write 25 Nifty OTM options, I need to maintain a 10 Lakh account (colalteral+cash) with my current discount broker.

Am I doing something wrong? (Is there a better way to do this with less capital)?
@abhay.fintech

Short reporting of margin attract 1 percent penalty from exchange if reported in given window of 5 days. Wrong reporting of margin if caught attract 100 percent penalty.

Stock Broker not collecting from client but still reporting to exchange , be careful position may not be in exchange . It is possible that trades in exchange are going as PRO trade and not client trade . careful about Stock Broker who is doing wrong reporting. In past SEBI , Exchange and ED has done raid on many such location where such kind of Dabba Trading happens.
 

headstrong007

----- Full-Time ----- Day-Trader
#12
@abhay.fintech

Short reporting of margin attract 1 percent penalty from exchange if reported in given window of 5 days. Wrong reporting of margin if caught attract 100 percent penalty.

Stock Broker not collecting from client but still reporting to exchange , be careful position may not be in exchange . It is possible that trades in exchange are going as PRO trade and not client trade . careful about Stock Broker who is doing wrong reporting. In past SEBI , Exchange and ED has done raid on many such location where such kind of Dabba Trading happens.
This is not, dabba trading, Wisdom, Aasta, IIFL etc are giving high exposure legally. Any such prop broker can use client un used money to give higher leverage. This is completely legal. Pls don't mislead the topic. I want only legal brokers like that with high leverages. There are many good full service brokers who give high margin for options writing for volume traders. All legally.. They are no dabba trading brokers. No dabba trading possible from trading with specific client code.

Most of good discount brokers like Zerodha etc doing prop trading also... There is no such risk if RMS is good. Good brokers with large client base know how to handle the risk..
 

MewarLion

Active Member
#13
I had not made comment on any Stock Broker. If you look 120 years history of Indian Capital Market , 98 percent times Stock Broker has defaulted due to Prop Trading. I am talking on fact. Collection of span margin is mandatory. Any Stock Broker who is not collecting even span on overnight position means clearly he is wrong reporting margin to exchange. There is 100 percent penalty on wrong reporting if caught . Stock Broker may be caught and may not be caught , is different matter. But Stock Broker is willing to adopt practice which is in Gross Violation of regulation is also matter of concern and client need to be aware about this. I respect all Stock Broker and my comment are with regard to fact and practice. Let us discuss on fact. Stock Broker allowing client to trade in his own Prop Account is not permitted and is in Gross Violation. Regulations become tighter and tighter due to few Stock Broker not following regulation and create problem for whole community.

Question raised by @abhay.fintech are valid and need to be discussed on fact.
 

headstrong007

----- Full-Time ----- Day-Trader
#14
In the new age of discount broking, over last 5 years..no known discount broker with large client base has defaulted. Most of them doing prop trading and using unused margin to give high leverages... The list such brokers is long ZERODHA, RKSV, SAS, TSO, SAMCO, FINVASIA, FYERS.... long list... All are giving higher intraday leverages within sebi rules and regulation. They have good RMS.
No such good Indian Discount Broker with large client base has defaulted bcoz of Prop Trading since 2000.. They know how to handle the risk.
No need to spread worries without any reason.


Many traderji member using them. Let one of above them default first...
Still there SEBI investor protection fund for traders. SEBI investor protection funds has maximum limit 25 lakh in case of any default. Most traders trading capital very less compared to that. Most traders using under 10 lakh cap. No need to worry too much. SEBI is there.

And Indian market is too younger, there was no hedging instrument like derivatives before in older days, so the risk was there.
Nifty introduced June 2000, Options 1 year later..After that, no major broker with large client base has defaulted. In the modern age, RMS have technology and instruments..
So no need to consider 120 years of history with modern age trading, technology...hedging instruments... There are weekly options too for hedging with only 4-5 days premium attached to it.
This is my last post in this topic.... Don't spread false worries...

***********
I created the thread to get info about good brokers with higher leverages...Not for meaningless argument...
Traders who are writing options with huge capital are experienced and intelligent enough to find out what is Dabba Trading... Leave that to them...
I request MewarLion to..Don't change the flow of this thread...

This is my last post about that topic..
 
#15
@headstrong007
I am also looking for a broker who requires SPAN margin only. The only one i could find is AsthaTrade. Are you trading with them??
If yes, how's your experience? If you don't mind sharing.
 

headstrong007

----- Full-Time ----- Day-Trader
#16
Experience not bad, Astha charge span margin for T+0 settlement, which is lowest. Most brokers charge T+1 which is higher.
Margin nearly same as their margin calculator...
Customer support neither good nor bad.. so so..
Only bad thing, Rs 500 a/c opening charge is too much..when most discount brokers have none.
 

MewarLion

Active Member
#17
I will discussed only facts nothing else. Find out 5 large default in last 10 years and all were due to Prop Trading. Default amount is also large as their prop exposure were large. Large the value of Prop Trading , greater the risk. Who is saying so called discount broker who collect extra PCM fee in violation of regulation will default. I am not predicting. All Stock Broker were good before they defaulted. All Banks were good before they defaulted. We are just discussing the possible reason for default.

Instead of discussing the fact that how any Stock Broker is charging less than span margin on overnight position and how few stock broker are allowing client trades in Prop Trading , we are discussing something else.
 

headstrong007

----- Full-Time ----- Day-Trader
#18
Valuable detailed input from sharath_raj. .:happy:
But very few members are writing options for carry forward..bcoz high capital is required. IMO..
Still expecting for more such inputs...
 

Subhadip

Well-Known Member
#19
Go for IIFL.... I am using it as main broker..

Also have alice blue, ASTHA etc....along with Zerodha & wisdom..

But for span only, IIFL is best..my view only
 
#20
After reading Subhadip Da post, I wrote to aliceblue asking exposure for option selling and I got the following reply

Dear sir,
In alice blue we are giving exposure based on plan , if u take 5555 and 9999 plan u will get 5 time exposure if u want more exposure we are giving 14999 plan only 10 time we are giving.
based on client ledger amount we will give 5 or 10 times exposure.
Regards

Seniors are requested to share their views as I want highest exposure for option selling (Intraday only) with lowest brokerage
 

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