You can Trade International Futures from India..Legally...Read How

[comm4300]

any suggestions on pure options brokers based in US?

I would like to trade options on :

- Indexes (dow, nasdaq, s&p)
- Commodity options (crude, gold, silver etc)


Experts, kindly repy:
a) if opening such an account is legal. [not trading forex, only options through broker from a stock exchange]
b) money transfer, withdrawal etc issues.
c) cheapest broker avaliable [like we have Zerodha and RKglobal's fixed rate brokerage]

thanks.

 

[MOka]

SO Ankit... what is about Interactive brokers? could you explain on the forum so everybody can understand

 

[Danzatronix]

My knowledge is very less but i have heard of some financial advisory firms saying that it is legal as per RBI but i am skeptical about the authenticity

2)Do they want to know the answer? What is the reason?
I have heard the exposure of these international commodities are much more than the exposure offered by the MCX, NCDEX. But its not worth it if its illegal.


3)Whom all have you talked to about this to get definite answers?
I have talked to a friend of mine who 1st told me that it can be done but I am not very much convinced with his views

Please tell me if it is genuinely possible for indian residents to trade in international futures

 

[throwawayacc123]

My knowledge is very less but i have heard of some financial advisory firms saying that it is legal as per RBI but i am skeptical about the authenticity

2)Do they want to know the answer? What is the reason?
I have heard the exposure of these international commodities are much more than the exposure offered by the MCX, NCDEX. But its not worth it if its illegal.


3)Whom all have you talked to about this to get definite answers?
I have talked to a friend of mine who 1st told me that it can be done but I am not very much convinced with his views

Please tell me if it is genuinely possible for indian residents to trade in international futures

Answer is a big NO.

Indian residents are not allowed to trade futures outside india.

Which idiot advisory firm is this ? ask them to show where in RBI circulars it is written that you can trade international futures.

They are scamming you , be careful.

 

[nik.trader]

You cannot trade any foreign instrument through a margin account. That means you cannot trade Futures, Forex or Equities on Leverage. You can however trade Equities without Margin ie. buy 10 shares of google at by putting full amount of 4000$ (assuming google is 400$ per share). You can do this through Interactive Brokers but the brokerage is very high. Your breakeven itself would be about 5-6% of your capital. Hence not really "trader" friendly. Do this only if you want to buy and hold google for super long term. Expecting the money will become 100 times more after 10-15 years And there is also a limit on how how much money you can transfer per year. I think it is upto 200000$ per year.
There is another instrument called CFD which is legal in UK.CFD's offer high leverage. Some people say CFD's touch the grey areas and hence can be traded . But while trading CFD's, the broker is allowed to take the other side of the trade. It is legalised Dabba but there are many good,reputed brokers for this and many people who do trade. If the banks allow you to transfer money for this go ahead but remember "Savaari apna Saaman ka khud Zimevaar hai"

 

[praful.arora]

1) IT DOES SOUND LIKE DABBA TRADING AS WE ARE NOT TRADING THE ACTUAL SECURITY BUT ONLY AN INSTRUMENT WHICH MIRRORS ITS PRICE. CAN SOMEBODY CONFIRM WITH SURETY IF CFD'S ARE OK TO BE TRADED LEGALLY FOR AN INDIAN CITIZEN VIA A US OR UK BROKERAGE ?

2) I TOO FEEL THAT WHEN TRADING CFD'S WE MIGHT BE TRADING AGAINST THE BROKER SO WOULDN'T THAT BE RISKIER ? OR IN OTHER WORDS IS IT EVEN GUARANTEED TO EXACTLY MIRROR THE PRICE OF THE UNDERLYING STOCK/CURRENCY AND NOT BE MANIPULATED BY THE BROKER?

THANKS IN ADVANCE :thumb:

 

[abhibirari]

Respected sir/madam,

I have undertaken a research study entitled "ANALYSIS OF DERIVATIVES TRADERS IN MAHARASHTRA STATE." for my Ph.D. in Management.

If you are a derivatives trader, kindly spare few minutes to complete this questionnaire.

Kindly follow below given link for submitting the questionnaire:

https://docs.google.com/forms/d/1lL...ecbzO-deo/viewform?c=0&w=1&usp=mail_form_link

I will communicate findings and recommendations of my study once I complete it which should help you trade better in market.


Contact in case of query.


Kindly also forward this to derivatives traders you know.


Please ignore the mail if you don't trade in derivatives segment.

 

[praful.arora]

Dear Ankit you have started a thread with a promise but not kept it till the end. You seem to have left everyone hanging. We are all here for open sharing of knowledge not for giving teasers or hiding anything.

Request you to complete the topic that you started. It would serve it's purpose if it can help anyone here.

 

[AmarKukreja]

You are spot on. RBI does not allow Indians to trade in international market any product that have margin requirement and that can have margin calls. So tranding F&O is out of question. We can only buy foreign equities uptO US$75K.
But there are a few international indices FUTURES available to trade on indian exchanges eg., S&P500 and DOW on NSE.

 

[satyatrader123]

The margin requirement clause is essentially applicable for swing trading where you hold positions overnight. If you are daytrading, you can open a position only if you have the minimum fund in the account. Further by putting a proper stop loss you can ensure you never go below the zero account level. So essentially a daytrader does not have margin requirement calls. (Unless you stupidly trade in the negative.....aggressive, hopeful person who believes the market will come to your price. Such persons should not trade at all, in any market in the world, and undergo mental reforming.)

Thus we do not violate the RBI intentions as we assure we shall never be called for margin calls. The only trades we take would be on the money funded by us.
With this said, aren't we satisfying all the RBI requirements in spirit?

This thread is very interesting. Hope we keep it alive..

Is ankit still available on email..?