Which brokers give Highest Exposures for POSITIONAL Option Writers?

stoch

Active Member
#21
Probably there is no as such overnight mininum fixed span margin for otm option writing, like 5% in futures.
It varies broker to broker.. already Aatha, Wisdom already have overnight options margin as low as 26k-28k.

And...I am talking about personal deals with prop trading brokerage firms. They make such deal with high volume traders. May be high intraday volume for selling options can give u such extra exposure for overnight positions also.. They share their own money for trading(and other clients unused money) to give high leverage. There are ways for doing it legally.

For such personal deals overnight margin is much lower..but first they ensure that even with Rs 3-5 per lot brokerage they get very high monthly brokerage by high trading volumes...

Prop trading firms like such traders for personal deals...who trades with high volume..like traders who convert nrml to mis for intraday to realese more margin to write more intraday options or trading with futures and then before eod convert again mis to nrml..
They just need to ensure high brokerage by high trading volumes and they also see past ledger record of consistency for such trader..

I am searching for such a good and trusted broker who make such deal.
Where can I check regulations of the brokers you mentioned?
 
#22
The personal deal means when they are convinced that risk is low with high leverage with a particular trader....with trading records with them or from ledger details from some other brokers...that consistency is there and no large draw down, quick payment if any margin calls etc.
When they assure that risk is less and trading capital is also good (usually min 5-10 lakhs or more), they release high exposure for options writing.

But it is better if there is already high leverage for general customers, then a personal deal can do a lot better...
Hi,
Have you done such a deal? What were the terms that you got? And capital?
 
#23
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
Did you take the plan? Can you share the contact name at Alice Blue?
 

pannet1

Well-Known Member
#24
hi Subhadip,

what are the tools (options chain, greeks, payoff) do IIFL provide. i think ODIN is very limiting when it comes to options trading

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
 

Raj232

Well-Known Member
#25
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
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
Dear Sirs, which one would you recommend for naked option writing in indices (Banknifty, Nifty). I'm looking for high margins and low costs (brokerage etc) I see Astha and Aliceblue both are charging brokerage per lot instead of per executed order.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#26
I am a POSITIONAL options writer and I need to keep my funds with the broker for the full month till expiry. I usually write 25 lots of Nifty option every month and keep them till expiry. I need to fund my account with almost 10 lakh to do this. (40K per lot).

Is it foolish to keep a 10 lakh account with a discount broker? How big an account do you have with your discount broker?

Am I sensible to do this with a discount broker (In terms of capital safety)?
I can't speak on behalf of other discount brokers, but we don't do anything that can jeopardize the safety of client funds. We don't engage in proprietary trading either or give overly high leverage by funding client positions. RMS is a top priority and we have many big active traders who park money in their trading accounts in excess of the amount that you have mentioned. One of the main things one should pay attention to is how a broker handles risk. Anyone who provides too much leverage is a dicey player and it's an indication to be wary.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#27
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.
Hey @MewarLion, You are right. Stockbrokers cannot allow clients to trade in the prop account. Thanks for throwing light on the risks with regards to prop trading practices among brokers in India.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#28
Hello Everyone,

I just came across this thread. To crack down on leveraged trading, SEBI has combined SPAN + Exposure margins and the brokers are required to provide the margins to the exchange by the end of the day. If a broker is associated with a clearing member, the member is not allowed to fund overnight derivative positions to the best of my knowledge so far.

Leverage is no longer going to be a key driver of growth for brokers who have thrived on providing unreasonably high leverage to clients on intraday and overnight positions in my opinion. Earlier, the exchange used to ask for SPAN only so the exposure aspect was at the discretion of the broker and some brokers chose to avoid it and take on more risk. However, that has changed now.
 
#29
Hi All,

Understand this thread is a bit old. But can anyone help with the broker names who provides such arrangement or overnight leverage?
I have heard that there are certain setups in which some brokers provide overnight leverage for delta neutral positions and charges specific interest rates for the extra leverage provided. Can anyone with more info help?

Thanks!
 

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