Zerodha....

[Zerodha]

zerodha ji as you said i have to get 30 % margin in cash to sell nifty options against nifty bees i hold rest you will give me margin against my nifty bees / infosys shares i hold

now i have 8500 nifty bees and have calculated that i need to sell 850 nifty dec strike 6000 options to make them as covered call

one option is for 60 Rs lot size is 50 so the cost of one option is 3000 Rs
so i need to sell 17 options and the total cost would be 51000

now according to you i have to bring in 30 % cash of 51000 which will be 17000
that is not a problem i guess but what happens to Mark to market loss if any

will you adjust from this 17000 or i need to top it up every day because that is real tough thing to do

What if the loss is more than 17000 will you give me time for to pay mark to market
or will you sell my infosys / nifty bees without telling

The brokerage i am saving in this case it 850 which i pay to icici sec to you ill pay 20 rs
but its very simple at icici sec please explain to make it less compicated

THANK YOU BINNI

Hi Binni,

Firstly margin required to write options work completely different to buying.. .When you buy an option, the risk is limited to the premium you pay. So to buy an option Rs 60 you need only Rs 3000, but to sell the same option which has unlimited risk you need a margin as prescribed by the exchange.. This would be around Rs 20000 for every lot.. So to write 17 lots, you would need around Rs 3.4lks ..

So if you want to pledge your nifty bees to write these 17lots, you would need 30% of Rs 3.4lks as cash which is around Rs 1lk.. the rest can be used from your nifty bees kept as collateral...

As far as the marked to market is considered, it has to be brought in on a daily basis, but because we have collected some funds for mtm we will give you sometime...

 

[Zerodha]

Zerodha ... from a lot of days we are waiting for Single platform to trade all ... and seemless use of money for Commodity and Equity...

I don't know why this is taking a lot of time... you have promised that it will be done within 2 months.. after launch of commodity... but till date nothing has happened...

Can you specify the date till which you can make it in single platform??

Sorry Sach about this, unfortunately a lot of regulatory hassles...Date could be anyday now, just don't know which day...

 

[timepass]

Sorry Sach about this, unfortunately a lot of regulatory hassles...Date could be anyday now, just don't know which day...

So, tell us about how it will be after everything is on one platform. Which login will we need - the one we use for NSE/NFO/CDS or the one for MCX ?? I don't have an commodities account with you as yet. Will I need to open a separate account even if everything is on one platform ??

I guess you are timing for your 2nd birthday, aren't you ? It's not far away

 

[megapixel]

Guys,

I have a doubt on commodity market.

Can anyone tell if you buy 100 kg potato ..how you make sure that potatoes have been bought ? You might say you'll receive a contract paper from exchange ...right ?

I'm worried here because potatoes may be bought on paper ...but may not exists really...like satyam case.

How does MCX solves this issue ?

 

[sr114]

Guys,

I have a doubt on commodity market.

Can anyone tell if you buy 100 kg potato ..how you make sure that potatoes have been bought ? You might say you'll receive a contract paper from exchange ...right ?

I'm worried here because potatoes may be bought on paper ...but may not exists really...like satyam case.

How does MCX solves this issue ?

MP

1st of all the contract size is 30 tonnes

2ndly for ur query - if u really want to know whether the potato is bought or it exist in paper like the satyam computer case, u take delivery of the contract either from Agra (Potato - Agra) or Tarakeswar (Potato- Tarakeswar).

the proof of pudding lies in eating. so take the delivery - lot of people does it and u join that queue

sr

 

[megapixel]

MP

1st of all the contract size is 30 tonnes

2ndly for ur query - if u really want to know whether the potato is bought or it exist in paper like the satyam computer case, u take delivery of the contract either from Agra (Potato - Agra) or Tarakeswar (Potato- Tarakeswar).

the proof of pudding lies in eating. so take the delivery - lot of people does it and u join that queue

sr

yup. I understand delivery is a proof. But I am talking about non delivery cases where buy and sell happening on papers only. it could happen that underlying potato does not exists :lol: ...... and entire business looks fraud

 

[sr114]

yup. I understand delivery is a proof. But I am talking about non delivery cases where buy and sell happening on papers only. it could happen that underlying potato does not exists :lol: ...... and entire business looks fraud

MP

ur inquisitiveness is very good - but people all over India is doing future business in MCX in this way from the beginning. they never thought in this way.

so we must give a thought in this matter and demand an explanation from MCX. and i plead u to lead our effort in this explanation seeking.

also we can do another thing - start a campaign to explain people that this is hapenning with you and please be aware of this (fraud) and its consequences. LOL

sr

 

[altaf petiwala]

MP

ur inquisitiveness is very good - but people all over India is doing future business in MCX in this way from the beginning. they never thought in this way.

so we must give a thought in this matter and demand an explanation from MCX. and i plead u to lead our effort in this explanation seeking.

also we can do another thing - start a campaign to explain people that this is hapenning with you and please be aware of this (fraud) and its consequences. LOL

sr

100 kg of potato

 

[sr114]

100 kg of potato

really.
no other commodity - but he zeroed on potato.

sr

 

[megapixel]

you know Satyam computer case was an eye opener . Did anybody ever thought that a company is surviving by its papers only without underlying real cash and also powered by its auditors.

I understand hundreds of traders doing commodity trading everyday...who cares ...you buy/sell commodity ..get money ...thats it......may be someday ......anyway....

Well I dont know what kind of checks are done by MCX ....probably someone can tell how MCX watches this.