@nithinThe suggestion of fewer strikes won’t improve focus threat in choices. Everybody shall be sitting on the identical strike when some information comes, and there shall be panic to exit. As per my understanding, please give your standpoint.
Moneycontrol – 9 Jul 24
MC Unique| F&O crackdown: Just one weekly choices contract per…
The knowledgeable working committee appointed by Sebi has advised a number of measures to rein in speculative buying and selling in derivatives.
That is going from regulation to over regulation. Banning weekly expiry to in the future is a disastrous concept. Simply improve the lot measurement to 3-4x if you need to however don’t ban stuff. Our market has simply began thriving and so they maintain arising with concepts to lock issues down. Banning expiries is like utilizing the nuclear possibility as a primary response. They need to improve margins, make extra disclosures or make fno merchants undergo a type the place they’re made conscious of the dangers and should fill some stuff manually to finish it. This may work as a great nudge and cease many. The remainder you’ll be able to’t cease. If an individual desires to smoke and drink and waste his life, he’ll. The federal government can’t act as a nanny state on a regular basis. If an individual desires to gamble, he’ll discover such avenues.
Please cease them from utilizing nuclear possibility as a primary measure. It’s influence shall be felt for a very long time in the event that they do it.Please @nithin cease this when you can.
Two or three years in the past, it was nearly the identical, so we’re going backward in progress as a result of our regulator thinks Ferrari can encounter an accident, so it’s higher to degrade to Maruti 800.
hello @nithin what does upfront assortment of possibility premiums from possibility patrons imply??
i heard some brokers enable possibility shopping for with margins.At Z, possibility shopping for is already upfront collected in money.
What does it even imply that they’ll ban otm strikes. We’d like otm strikes to hedge atm shorts and so forth. Those that have 5000 rs to gamble can gamble it with 10 strike otm or 5 strike otm. Doesn’t matter to them. However it’ll mess up the hedging functionality of different market individuals.
Completely foolish stuff they’re arising with. It’s like banning roads to forestall accidents.
General this can be a cocktail of tousled measures which can blast a thriving market to rubble. They should implement a number of issues and see the response. They don’t want to fireside all weapons in a single go. @nithin
Larger lot sizes makes place sizing much less correct when you measurement for fixed threat. Hope they don’t try this. AFAIK, futures quantity hast expanded in identical approach.
Anyway, if i learn accurately, nithin appeared to counsel that SEBI is set on quantity discount. So One thing drastic will in all probability occur. With 1 weekly per change, there shall be atleast 2 – one from bse one from nse, so doesnt appear that unhealthy ?
gaurav_choudhary:
what does upfront assortment of possibility premiums from possibility patrons imply??
Means if somebody is shopping for choices they need to pay full premium upfront from their very own funds, ex for nifty lot measurement is 25 and possibility premium is 100 then one ought to have 2500 to purchase one lot of that nifty, presently few brokers provide leverage in possibility shopping for ie if person has 1000 rs ,dealer can provide 1500 from his aspect and may enable person to purchase that possibility.
That is completely a great transfer for possibility patrons. It should infuse extra liquidity from patrons aspect and provides directional strikes for patrons who misplaced main cash simply to decaying devices. Additionally, it’ll make these Jane Road methods out of date n immediate them to recreate new ones to trial n take a look at. Now market can have extra trending days than sidewise. That is simply my view seeing the Choices market carefully since March 24.
not unhealthy if enable solely nifty50,banknifty for weekly expriy and sensex
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If the contract measurement is elevated , SPAN will go up however Publicity margin stays the identical proper ?
Arpan:
If the contract measurement is elevated , SPAN will go up however Publicity margin stays the identical proper ?
Publicity additionally will go up as it’s based mostly on proportion of contract worth.
What about future contracts?For instance, if quite a lot of nifty presently 68k, will it additionally improve by 4-5 occasions? @siva
They’ll improve contract worth from 5 lacs to 20-30 lacs.
i.e. NIFTY at 20,000 and 1 lot = 25 Portions. contract worth is 5 lacs
in the event that they resolve to extend it to 30 lacs. 3000000/20000 = 150 Q.
1 lot can have 150 Portions so merchants with small capital can’t commerce.
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This isn’t going nicely.Govt doesn’t need small individuals to progress. When somebody begins available in the market, they begin small and study quite a lot of new issues about private finance and compounding and what not.There are guarantees of turning into a developed nation and competing with the USA and China, however how will that occur if small individuals are not given an opportunity to advance?Not simply buying and selling, however each enterprise is being made robust as an alternative of being made easy.
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Rathi:
For instance, if quite a lot of nifty presently 68k, will it additionally improve by 4-5 occasions?
Undecided, SEBI could challenge session paper to gather public suggestions earlier than finalizing, so it might take someday, solely factor all of us can do is wait.
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I Fully agree, there is no such thing as a logic to Fewer Strikes/Larger lot measurement. The identical type of unwinding will occur in harassed eventualities. This isn’t gonna deter speculators, actually there may be extra systematic threat if this goes by.
Agreed, pathetic logic by SEBI