How to invest 40 lakhs in equity, FnO, commodities etc. Part 2

[TradeJoker]

bhaiyoo... bahanoo... Bus,train aur sexy ke piche mat bhagna

 

[anuragmunjal]

If I want to take a position, I tell the guy that handles the transactions & settlements to take a position on my behalf....he will give me that position at a premium or discount depending on market!

Say 9500 CE is priced at 310...he will either charge a premium 350 or discount 280 and he gets to keep the extra amount charged! In return I have to just pay upfront 10% of the total buying/selling Options value.....This guy may buy/sell on same day or next day or anytime suitable for him. But he has received 10% of the value from me and he will honor his word as I will mine.

And since I can keep position open with him, he will deduct brokerage ONLY from profits when the trade is in profit. If no profit, nothing to pay additionally till profits booked :thumb: And expiry is pretty far...so no problems!

Whats so difficult to understand ?

what is difficult to understand is..

a). when u are being charged a premium, u are paying much more than the actual brokerage.

b). u are admitting on a public forum that u trade illegaly.

 

[Mr.G]

what is difficult to understand is..

a). when u are being charged a premium, u are paying much more than the actual brokerage.

b). u are admitting on a public forum that u trade illegaly.

EXACTLY that's what is baffling me all this while. Why would you buy at premiums? And why will he sell you a position at a discount?

 

[ryan4ucar]

If I want to take a position, I tell the guy that handles the transactions & settlements to take a position on my behalf....he will give me that position at a premium or discount depending on market!

Say 9500 CE is priced at 310...he will either charge a premium 350 or discount 280 and he gets to keep the extra amount charged! In return I have to just pay upfront 10% of the total buying/selling Options value.....This guy may buy/sell on same day or next day or anytime suitable for him. But he has received 10% of the value from me and he will honor his word as I will mine.

And since I can keep position open with him, he will deduct brokerage ONLY from profits when the trade is in profit. If no profit, nothing to pay additionally till profits booked :thumb: And expiry is pretty far...so no problems!

Whats so difficult to understand ?

So this so called guy is a local underworld don who will beat you up if you don't pay say the 1 crore you will have to pay him ?

 

[SexyTrader]

what is difficult to understand is..

a). when u are being charged a premium, u are paying much more than the actual brokerage.

b). u are admitting on a public forum that u trade illegaly.

But the trades are ultimately being done through the Exchange. So its all legal...nothing illegal.

The premium is just coz they allow to hold position with them by paying just 10% of the total buying or selling Options value...its super leverage I would say.

 

[SexyTrader]

EXACTLY that's what is baffling me all this while. Why would you buy at premiums? And why will he sell you a position at a discount?

The reason why they could sell a position at a discount is maybe some person needs the money but does not wish to take a loss. So he gets paid his premium amount invested without taking a loss.

 

[anuragmunjal]

But the trades are ultimately being done through the Exchange. So its all legal...nothing illegal.

The premium is just coz they allow to hold position with them by paying just 10% of the total buying or selling Options value...its super leverage I would say.

all such trades are illegal.. even the sub brokers today have to open their clients' accounts with brokers directly.here, there is no stt paid, no exchange charges.etc.. pls update yourself

 

[Mr.G]

all such trades are illegal.. even the sub brokers today have to open their clients' accounts with brokers directly.here, there is no stt paid, no exchange charges.etc.. pls update yourself

This guy is making another guy trade on his account on the exchange and paying him in black. But still why dont those trades reflect on exchange?!

 

[anuragmunjal]

This guy is making another guy trade on his account on the exchange and paying him in black. But still why dont those trades reflect on exchange?![/QUOTE

]

apparently what is being suggested here is that our friend trades with someone who sells /buys derivatives to him at a premium or discount (for whatever reasons), and since he has already collected premium or paid discount, it is not imperitive for him to offset the transaction in the exchange immidiately. he can do so at his own free will when 'he' and our dear friend are both in profit.

 

[Mr.G]

apparently what is being suggested here is that our friend trades with someone who sells /buys derivatives to him at a premium or discount (for whatever reasons), and since he has already collected premium or paid discount, it is not imperitive for him to offset the transaction in the exchange immidiately. he can do so at his own free will when 'he' and our dear friend are both in profit.

You are an elderly gentleman, you must have been in the markets even before I was born, Do you think this is possible!? And will anyone be willing to do this? Even after the risk and legal ramifications?