Zerodha - Number One Discount Broker in India
- Thread starter Traderji
- Start date
I guess that should not matter much for people who trade more than 2 or 3 lots.
Say for example, Nifty is at 8500 and the lot size is 25. The total value of the contract will be around 2 lakhs, but we need a margin of 17K to trade one lot. Thats around 7 to 10 percent margin. If SEBI decides to increase the contract size to 5 lakhs, then we may be looking at 50 lot size and this may need 35K if we consider the margin required to trade.
Consider bank nifty at 19000 and 25 lot quantities. This means it is already around 4.5 lakhs in margin. And Zerodha's Span Calculator shows a margin of 38K required to trade one lot. I am probably assuming that SEBI will decide to keep the lot size on BankNifty to be the same or keep it in multiples of 5.
In any case, it shouldn't matter much to retailers as those who are professional enough and making some profit will dare to stick on while many others who are starting will be pushed down to limit their losses.
But, Indian Govt. is the most disappointing and discouraging Govt of all. They have a ban on Forex trading and now they are trying to meddle with something that proved to be bread and butter for a lot of retail traders.
They think they are looking out for their citizens while in fact they are limiting people from growing.
Say for example, Nifty is at 8500 and the lot size is 25. The total value of the contract will be around 2 lakhs, but we need a margin of 17K to trade one lot. Thats around 7 to 10 percent margin. If SEBI decides to increase the contract size to 5 lakhs, then we may be looking at 50 lot size and this may need 35K if we consider the margin required to trade.
Consider bank nifty at 19000 and 25 lot quantities. This means it is already around 4.5 lakhs in margin. And Zerodha's Span Calculator shows a margin of 38K required to trade one lot. I am probably assuming that SEBI will decide to keep the lot size on BankNifty to be the same or keep it in multiples of 5.
In any case, it shouldn't matter much to retailers as those who are professional enough and making some profit will dare to stick on while many others who are starting will be pushed down to limit their losses.
But, Indian Govt. is the most disappointing and discouraging Govt of all. They have a ban on Forex trading and now they are trying to meddle with something that proved to be bread and butter for a lot of retail traders.
They think they are looking out for their citizens while in fact they are limiting people from growing.
Yeah...!! I support NaMo too but he doesn't make these rules or regulations. It's entirely in the hands of those who are in charge of the departments. I am being very specific, referring to SEBI.. And also few other stuff like making helmets compulsory in my city, Bangalore. Govt.!! What are you?... My mom...!! Get off my back for gods sake...
