General Trading Chat

siddhant4u

Well-Unknown Member
Received this PM from a member. Good news for the day traders.


https://www.moneycontrol.com/news/b...are-pledging-mechanism-next-week-4812961.html

SEBI failed to stop Intraday leverage and overpowered by small brokers on Jan 8 last meeting as a result stopped that move.
Instead RMRC proposed only SPAN margin in future. In future we may see only SPAN margin for NRML position and overall further reduced margin requirement.


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The SEBI-appointed Risk Management Review Committee (RMRC) said,

“Higher margins result in a lower return on investment (RoI) for a trader. Ironically, an FII who has an option of trading both in India as well as in Singapore Stock Exchange (SGX) would pay higher margin money in India and only the SPAN margin in Singapore. Essentially the same amount of money will give the FII better leverage and higher return if he trades abroad”.

“India is the only country in the world where initial margin charged in the F&O (Futures and Options) segment consists of three layers- SPAN (Standardised Portfolio Analysis for Risk), exposure and additional margin. The study also found that if India followed only SPAN margin system it would have been good enough to cover the risk for 99.44 percent instances of At-the-Money (ATM) and Out-of-the-Money (OTM) stock option contracts. Simply put, there is no need to burden traders with extra margins”.

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Note: Zerodha was only discount broker who was supporting the SEBI to stop intraday leverage. All others against it. Fyers stand was neutral. Rest of discount brokers were all against SEBI, some of them are FINVASIA, SAMCO, WISDOM, UPSTOX(RKSV) who supported us. Finally we won.

Besh Wishes,
Happy Trading,
Cheers.
 

Schatz

Well-Known Member
Received this PM from a member. Good news for the day traders.


https://www.moneycontrol.com/news/b...are-pledging-mechanism-next-week-4812961.html

SEBI failed to stop Intraday leverage and overpowered by small brokers on Jan 8 last meeting as a result stopped that move.
Instead RMRC proposed only SPAN margin in future. In future we may see only SPAN margin for NRML position and overall further reduced margin requirement.


***********

The SEBI-appointed Risk Management Review Committee (RMRC) said,

“Higher margins result in a lower return on investment (RoI) for a trader. Ironically, an FII who has an option of trading both in India as well as in Singapore Stock Exchange (SGX) would pay higher margin money in India and only the SPAN margin in Singapore. Essentially the same amount of money will give the FII better leverage and higher return if he trades abroad”.

“India is the only country in the world where initial margin charged in the F&O (Futures and Options) segment consists of three layers- SPAN (Standardised Portfolio Analysis for Risk), exposure and additional margin. The study also found that if India followed only SPAN margin system it would have been good enough to cover the risk for 99.44 percent instances of At-the-Money (ATM) and Out-of-the-Money (OTM) stock option contracts. Simply put, there is no need to burden traders with extra margins”.

*********
Note: Zerodha was only discount broker who was supporting the SEBI to stop intraday leverage. All others against it. Fyers stand was neutral. Rest of discount brokers were all against SEBI, some of them are FINVASIA, SAMCO, WISDOM, UPSTOX(RKSV) who supported us. Finally we won.

Besh Wishes,
Happy Trading,
Cheers.
the article does not say anything about intraday leverage .. its about margin for hedged pos and some pledging of shares thing... correct me if i m wrong.... logic says if margin is reduced from hedged pos then intraday leverage would be checked...
 
Onions are already available around Rs.50/kg in the local market. So is it a surprise that the states are not buying it at Rs. 55/kg ?

States Not Buying Imported Onions, Centre Worried: Minister
Retail onion prices, which were ruling over Rs 100 per kg in most cities since the past two months, have started softening now on arrival of imported onions and new kharif crop.

https://www.ndtv.com/india-news/foo...buying-imported-onions-centre-worried-2163998
 

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