So brokers will not be able to provide leverage like before?

[curiousv]

I am not sure what will be change in leverage provided by brokers due to recent changes in rules.
For example if broker was providing 10x margin for option selling ..after new rules they will not be able to provide leverage at all or they will be able to provide at reduced rate?
i.e if I have 15 lac and broker was providing 15x10 = 1.5 crore even for positional ..that will be reduced if so how much will be provided now ?

 

[maheswara.rd]

bro till dec i guess they will give... without margin turnover will become 1/4th.... retail traders will not be much active so ... i dont think they can reduce much exposure/ leverage.....wait for new rules...

 

[RadhuK]

I am not sure what will be change in leverage provided by brokers due to recent changes in rules.
For example if broker was providing 10x margin for option selling ..after new rules they will not be able to provide leverage at all or they will be able to provide at reduced rate?
i.e if I have 15 lac and broker was providing 15x10 = 1.5 crore even for positional ..that will be reduced if so how much will be provided now ?

Brokers cant provide any leverage after March 2021 (gradually reduced in 3 phases).
You can trade only upto the limits available in your account.
Suppose you have 10L capital. You can take positions only for 10 lacs , either intra or positional.
Funds in your trading account should have come from your own banking account.
Another bigger worry is....
Say you buy NF lots worth 10L. and intra day M2M loss overshoots your capital, but by EOD your position is in profit.
Still exchange will levy a penalty on the extent of M2M overshoot

 

[marimuthu13]

Brokers cant provide any leverage after March 2021 (gradually reduced in 3 phases).
You can trade only upto the limits available in your account.
Suppose you have 10L capital. You can take positions only for 10 lacs , either intra or positional.
Funds in your trading account should have come from your own banking account.
Another bigger worry is....
Say you buy NF lots worth 10L. and intra day M2M loss overshoots your capital, but by EOD your position is in profit.
Still exchange will levy a penalty on the extent of M2M overshoot

For intraday,we need only ELM+VAR margin even after March 2021... Means around 4-5 times exposure

 

[maheswara.rd]

Brokers cant provide any leverage after March 2021 (gradually reduced in 3 phases).
You can trade only upto the limits available in your account.
Suppose you have 10L capital. You can take positions only for 10 lacs , either intra or positional.
Funds in your trading account should have come from your own banking account.
Another bigger worry is....
Say you buy NF lots worth 10L. and intra day M2M loss overshoots your capital, but by EOD your position is in profit.
Still exchange will levy a penalty on the extent of M2M overshoot

is this true this is pathetic

 

[maheswara.rd]

then please should stop trading in indian market

 

[travi]

For intraday,we need only ELM+VAR margin even after March 2021... Means around 4-5 times exposure

Yes, 20% min so in best case max will be 5X intra.

 

[RadhuK]

Yes, 20% min so in best case max will be 5X intra.

This is only for Cash Segment or applicable to intra FnO also

 

[travi]

This is only for Cash Segment or applicable to intra FnO also

it not very clear bcos the story is still developing but there is no distinction on terms of risk and its about var+elm logic.
Since F and O are different, here is what i think.
F is already leveraged and var+elm or max margin are for overnight pos, so current intra margins will go up to that. It means whether you trade intra or carry, it will need the same margin.

O to buy is already paid up in full to carry and nowadays intra also costs full amount with CO/BO blocked etc. Maybe some thing may come up for intra but it wont be much leverage.

O to write, currently, intra margins are lesser but like F, it may level to same as overnight margin. so intra or overnight will have need the same margin.

Just from what i understand and these things can change.