Margin for new Nifty lot size?

#1
Hi all
As according to the new circular issued by NSE, nifty's lot size has been changed from 25 to 75. I wanna know if anybody is aware about the percentage of margin which will be required to trade nifty now??

With lot size of 75, value of nifty will be 8600*75 = 6,40,000 approx. If we go by standard 10% margin, 1 Nifty lot will cost us around 64000 bucks. Will this dent the liquidity in some form or the other?
 

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Humbled by Markets
#2
it should be 3 times the present margin.
 
#3
Mutual funds are the ones that are going to benefit from this. Who else? May be this is a conspiracy? If they care so much about the retail investor/trader that he shouldnt blow his money in the futures market, why dont the come up with some rules that limit his trading and give him some exposure to the futures market? Its like since reckless driving causes accidents, ban all vehicles for the public, not the institutions. It seems that the Big Guys sitting somewhere are deciding what others should or should not be doing. Funny. And see their guts that they are openly admitting it that they are doing it to prevent small investor from entering the derivative segment. Licence Raaj returns.
 
#4
when u make profit in market .... they expect us not to cross 10 lakhs and even if someone goes beyond 10 lakhs those begars at IT department wants 30% of your hard earned money F that !!

Now they want to reduce the liquidity ^^ after raping so many customer when nothing is left increase the lots size in name of protect the small investor where Nun is left :xD....

Since lot size is increased to 3x No one has balls to raise question why ?
don;t u think if they raise to 3x then rasise the tax limit for short term gain limit alos to 30% ? why not make new tax slab as pay 30% only when crossing 30 lakhs :xD

It happens only in India where illetrate ppls make rules of what i will pay and how much i will pay as tax .


For some reason i think govt doesn;t want u to earn 10 Lkahs per annum profit lol
and my Tax paid money goes in payment of Who...res of netaji

Don;t forget to check Span margin in starting of month :xD
for oct nifty i still see qty of 25 is allowed so idk if lot size will change or not
 
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#5
when u make profit in market .... they expect us not to cross 10 lakhs and even if someone goes beyond 10 lakhs those begars at IT department wants 30% of your hard earned money F that !!

Now they want to reduce the liquidity ^^ after raping so many customer when nothing is left increase the lots size in name of protect the small investor where Nun is left :xD....

Since lot size is increased to 3x No one has balls to raise question why ?
don;t u think if they raise to 3x then rasise the tax limit for short term gain limit alos to 30% ? why not make new tax slab as pay 30% only when crossing 30 lakhs :xD

It happens only in India where illetrate ppls make rules of what i will pay and how much i will pay as tax .


For some reason i think govt doesn;t want u to earn 10 Lkahs per annum profit lol
and my Tax paid money goes in payment of Who...res of netaji

Don;t forget to check Span margin in starting of month :xD
for oct nifty i still see qty of 25 is allowed so idk if lot size will change or not
Why so much of negativism ? Many countries in the world have higher tax rates than us. We have a graded tax slabs of 10 %,20 and 30 % at maximum.If citizen of the country dont pay tax how will the progress of the country be financed ? If we finance it through loans from international bodies then we will have Greece like situation here.

Indian tax system is pretty good. Many countries have higher taxes than us, we have incentive for investments, we can carry forward our losses ( if we get a loss in any year) and set it off against future profits. And if one makes profit why should we feel so bad about paying taxes ? I am at the highest tax rate and I look at it from positive view that after paying my taxes honestly, I am still left with 75 % of my profits on average ( after various tax concessions and slabs ) which I can spend the way I like. I can live with pride and dignity that I am paying correct taxes and walk with my head high.No Govt babu can question you how you spend the money after paying taxes correctly and in time. Govt has never said that you dont earn profits over 10 Lakhs...make high profits, pay taxes and live happily.

Now as the lot size increase has come in SEBI circular, we have to think how we adapt ourselves to the new trading lots. Once SEBI decides anything they will not budge even an inch from their decision.

Smart_trade
 
#6
Once SEBI decides anything they will not budge even an inch from their decision.

Smart_trade
But is the reason for this decision valid? I dont think it will even stand in the court if some trader moves court.
 
#7
But is the reason for this decision valid? I dont think it will even stand in the court if some trader moves court.
Reasons are debatable. There are pros and cons ...lot can be argued in favour and against. But it is futile to argue on something which is inevitable.

The decision of charging SEBI tax ( it came in 1992) was also contested in Mumbai High Court and Supreme Court. The courts ruled in favour of SEBI.

This decision if contested in Courts by way of court petition, I am sure it will be struck down. Let some investor/trader bodies try it. Lot size is administrative decision between SEBI and Stock Exchanges and Courts never interfere in such administrative decisions.

Smart_trade
 

umeshmandal

Well-Known Member
#8
But is the reason for this decision valid? I dont think it will even stand in the court if some trader moves court.
Totally agree with you PA. If SEBI does not pay heed, it should go to FM!! Why only the FII and DII and hNI's have the right to hedge their Portfolio with Options, why cant small stake holders also do it with options! Fact is that the LOT SIZE should have been reduced !
 

vijayanscbe

Well-Known Member
#9
Why so much of negativism ? Many countries in the world have higher tax rates than us. We have a graded tax slabs of 10 %,20 and 30 % at maximum.
In some country 10% tax is deducted from monthly salary, whether your salary is 1000rs or 1,00,000rs not taken into consideration. But we have tax slabs which reduce burdens.
 
#10
Totally agree with you PA. If SEBI does not pay heed, it should go to FM!! Why only the FII and DII and hNI's have the right to hedge their Portfolio with Options, why cant small stake holders also do it with options! Fact is that the LOT SIZE should have been reduced !
Most of the objections are coming from traders who want to sell options and they now will need larger margins of 70-80 K. For an investor who wants to hedge his portfolio against market risk, he can still buy puts at Rs 100-150 so for 75 Nifty he will need Rs 7500-Rs 10,000 and any investor having a portfolio to protect can definately pay 10 K for hedge. And if 10 K is unaffordable, they should participate in the market through mutual funds route.

Smart_trade
 

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