Trading US Equities and Options

[iTrade]

There is restriction in movement of RS to US markets. Money from US can be invested in US securities.

There is a more to it. In addition, you cannot use the money for leveraged trading outside India. Trading only on delivery basis is allowed.

 

[iTrade]

I can create 20 page website as it will not cost me millions but the things will be same
I like to keep things simple straightforward and brief
What we do is mentioned there in one line and all the tools to communicate and find whatever details a trader needs
I have come to this website just to introduce myself and get in touch with fellow traders who would like to explore the opportunities in US Equities and Options

Yeah the attitude is helping.

 

[Newbie Day-Trader]

As far as I know , Indian residents can only Invest in securities off shore but not trade. However any more details will be appreciated.

Are there any RBI circulars saying that "trading" in US/foreign securities isn't allowed? I've not come across anything making a distinction between "trading" & "investing".

 

[Labh Securities Advisory]

The thing which is not allowed is margin trading in offshore market..so you can put 100k USD and trade or invest with that 100k leverage only but if there is no additional leverage or margin it is not logical to say it trading at all
If you open an account for yourself you have to send money abroad and banks will ask you a million questions apart from ripping you off in exchange rate
There is no law in India which prevent you from trading a foreign market if it is not your money..so lets assume I am a good trader and a foreign trading firm want to hire me to trade with their capital then nothing illegal and nothing illogical.. I will trade and if I make money that money is paid to my bank account in India and I pay tax on that so what is wrong ?
There are many Prop trading firms operating from India most popular Capstone Securities and Futures First and they do trading only with margin..but there is business model to get things done without violating any law of India
We as a trader should be more focused on trading and making money for ourselves...Govt. does not want us to trade foreign market because they need our presence in NSE, BSE and MCX to fulfill their own sinister agendas... but a trader survive only with his trading income and nobody help him when he fails as a trader so lets not get into much legal stuff as we are traders not lawyers
You can ask me any specific questions you have

 

[shijo]

The thing which is not allowed is margin trading in offshore market..so you can put 100k USD and trade or invest with that 100k leverage only but if there is no additional leverage or margin it is not logical to say it trading at all
If you open an account for yourself you have to send money abroad and banks will ask you a million questions apart from ripping you off in exchange rate
There is no law in India which prevent you from trading a foreign market if it is not your money..so lets assume I am a good trader and a foreign trading firm want to hire me to trade with their capital then nothing illegal and nothing illogical.. I will trade and if I make money that money is paid to my bank account in India and I pay tax on that so what is wrong ?
There are many Prop trading firms operating from India most popular Capstone Securities and Futures First and they do trading only with margin..but there is business model to get things done without violating any law of India
We as a trader should be more focused on trading and making money for ourselves...Govt. does not want us to trade foreign market because they need our presence in NSE, BSE and MCX to fulfill their own sinister agendas... but a trader survive only with his trading income and nobody help him when he fails as a trader so lets not get into much legal stuff as we are traders not lawyers
You can ask me any specific questions you have

I trade for a US fund from india, mainly commodity options if you want to see P/L here it is

 

[lemondew]

Foreign trading firm can do it as they dont need to send Rs from india. And our govt will be happy if $ is send to traders in india without Rs going out.

The thing which is not allowed is margin trading in offshore market..so you can put 100k USD and trade or invest with that 100k leverage only but if there is no additional leverage or margin it is not logical to say it trading at all
If you open an account for yourself you have to send money abroad and banks will ask you a million questions apart from ripping you off in exchange rate
There is no law in India which prevent you from trading a foreign market if it is not your money..so lets assume I am a good trader and a foreign trading firm want to hire me to trade with their capital then nothing illegal and nothing illogical.. I will trade and if I make money that money is paid to my bank account in India and I pay tax on that so what is wrong ?
There are many Prop trading firms operating from India most popular Capstone Securities and Futures First and they do trading only with margin..but there is business model to get things done without violating any law of India
We as a trader should be more focused on trading and making money for ourselves...Govt. does not want us to trade foreign market because they need our presence in NSE, BSE and MCX to fulfill their own sinister agendas... but a trader survive only with his trading income and nobody help him when he fails as a trader so lets not get into much legal stuff as we are traders not lawyers
You can ask me any specific questions you have

 

[cloudTrader]

Are there any RBI circulars saying that "trading" in US/foreign securities isn't allowed? I've not come across anything making a distinction between "trading" & "investing".

Yes, I have come across a circular by RBI regarding this fact. Leveraged trading is not allowed for Resident Individuals in foreign markets. If I get hands on that circular I will post the link to it.

 

[Newbie Day-Trader]

Yes, I have come across a circular by RBI regarding this fact. Leveraged trading is not allowed for Resident Individuals in foreign markets. If I get hands on that circular I will post the link to it.

Ok, there's no doubt that leveraged trading isn't allowed. I meant to ask about intraday or swing-trading in US stocks without any leverage.

I don't really trade options much but I'm curious what they'd think about BUYING options on US exchanges because I remember someone here saying that it would be ok because one wouldn't owe additional margin-money on those, as in the case of futures or selling options or forex.

 

[cloudTrader]

Ok, there's no doubt that leveraged trading isn't allowed. I meant to ask about intraday or swing-trading in US stocks without any leverage.

I don't really trade options much but I'm curious what they'd think about BUYING options on US exchanges because I remember someone here saying that it would be ok because one wouldn't owe additional margin-money on those, as in the case of futures or selling options or forex.

I think regarding trading Options in overseas markets we need more clarity on the RBI norms.

For clarity following link is helpful regarding what resident individuals can opt for while remitting money outside India:

https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=9899#18

 

[lemondew]

if one wishes to do intraday or futures. One doesnt need to do in US markets. He can do in NSE.

For options US stocks have more liquidity. Less margin for spreads. Thats the only advantage.