Day Trading Stocks & Futures

[TracerBullet]

It also reduces the participation of arbitragers and algo traders, which in turn helps increase transparency in the markets. But then again that is at the expense of many small retail traders.

So i guess, american markets are highly opaque. And our markets with very high costs are anyway not good for HFT, so i guess we are already more transparent than world markets.
So transparent .. even better would be to physically trade in local markets. Everything will be transparent then. You will even know who bought who sold who is naked who is not, completely transparent. Then the best way to trade should be to trade groceries.

ofcourse i agree with the part that irresponsible traders r responsible for their actions.. but u r not considering the systematic risk... overleverage can kill brokers in black swan events... current generation of traders may not have seen much of that .... some of us must have traded lets say the surgical strike day or trump election day... banknifty options spread was like 200 bid to 300 ask or more... if u r overleveraged and have huge quantity .. u wont be able to get out with that kind of spread without paying hell lot of money to the market maker... things look rosy and hunky dory in normal mkts... when push comes to shove everything breaks down ..

Yes but this is pushing to other extreme with very less leverage for intraday and overnight risk stays where such issues are more relevant. Illiquid markets will heighten such issues. How can market makers survive in India when breakeven cost are so high? So no market makers => wider spreads.

 

[travi]

Constant fluctuation of rules is whats the problem. If you do that then the industry will stay at the fence and the government itself can start business and employ people.

They should merge NSE/BSE like the PSBs
why expend double costs on everything from salary, infra, servers etc

what good is one doing over the other?

 

[Schatz]

So i guess, american markets are highly opaque. And our markets with very high costs are anyway not good for HFT, so i guess we are already more transparent than world markets.
So transparent .. even better would be to physically trade in local markets. Everything will be transparent then. You will even know who bought who sold who is naked who is not, completely transparent. Then the best way to trade should be to trade groceries.



Yes but this is pushing to other extreme with very less leverage for intraday and overnight risk stays where such issues are more relevant. Illiquid markets will heighten such issues. How can market makers survive in India when breakeven cost are so high? So no market makers => wider spreads.

market makers get rebates and their cost is close to NIL... i would guess 90% of their costs r rebated

 

[travi]

TB Bhai, maybe this whole ploy is to push margin funding
why give leverage for free, isme bhi paise nikalo

if margin funding is legal, how did that abate any risk for anyone ?
Edit: Apparently even Z had got an nbfc license. Margin funding type lending would definitely have been on their agenda.

 

[TracerBullet]

market makers get rebates and their cost is close to NIL... i would guess 90% of their costs r rebated

I moved the topic a bit. But anyway does govt not tax ? If they do then exchange has to pay rebate and there will be a limit to what they can subsidize. i dont see how they can subsidize market makers for the entire market ...

 

[vikas2131]

no surgical strike was intraday... it happened before mkt hours but nobody knew abt it.. mkt went up in the morning with low volatility and then cracked down post 11 am or so (it was announced then) ... i was long straddle.. i clearly remember the day

I remember it was intraday though despite large sell off , swing positions did not hit stop loss.

 

[SarangSood]

So i guess, american markets are highly opaque. And our markets with very high costs are anyway not good for HFT, so i guess we are already more transparent than world markets.
So transparent .. even better would be to physically trade in local markets. Everything will be transparent then. You will even know who bought who sold who is naked who is not, completely transparent. Then the best way to trade should be to trade groceries.



Yes but this is pushing to other extreme with very less leverage for intraday and overnight risk stays where such issues are more relevant. Illiquid markets will heighten such issues. How can market makers survive in India when breakeven cost are so high? So no market makers => wider spreads.

Being an option seller i have to continuously adjust my positions. With every adjustment the cost has increased substantially in the last 5 years. The difference is the amount of price fluctuations which is caused by algo/HFT traders. Many novice traders will not even get to know these hidden costs.

The volume in our options market percentage wise to futures & cash is way higher than US markets where futures are very dominant. In futures trading one doesn't need to adjust. All this is an option sellers practical problems.

 

[Schatz]

I moved the topic a bit. But anyway does govt not tax ? If they do then exchange has to pay rebate and there will be a limit to what they can subsidize. i dont see how they can subsidize market makers for the entire market ...

they r providing service .. in absence of that they wont be able to provide this service... imagine u have to offload 10000 shares of reliance and no buyers.... so its justified but to what extent depends on the country, exchanges etc etc..

 

[cinderblock]

I remember it was intraday though despite large sell off , swing positions did not hit stop loss.

2% selloff in 30 mins is not a big deal. The worst slippage I have faced in Futures is 0.5%. I can live with that once in a while

I am sure you swing long enough you will hit a 5% circuit. My worst is 3% so far on Brexit (300 down on open) - MIS or no MIS is not going to help me with that.

 

[TracerBullet]

Being an option seller i have to continuously adjust my positions. With every adjustment the cost has increased substantially in the last 5 years. The difference is the amount of price fluctuations which is caused by algo/HFT traders. Many novice traders will not even get to know these hidden costs.

The volume in our options market percentage wise to futures & cash is way higher than US markets where futures are very dominant. In futures trading one doesn't need to adjust. All this is an option sellers practical problems.

i am no expert, but the highlighted part is an assumption. If it were true, then global markets would have an even bigger effect of this as HFT is more prevalent. Assuming that is not true then the 1st assumption is not true ...

More and more people will get pushed to options due to these regulations. But still if volume was high enough then you should have lower impact cost and not vv.

Anyway, no amount of posting will change anything. Only thing we can do is adapt. I guess paying for leverage via loans will increase as travi said ..