Read on Twitter
ππππππ§π¦ π’π π ππ₯πππ‘ ππππ‘πππ¦ π’π‘ ππ‘π§π₯ππππ¬ ππ₯π’π π‘ππͺ π¬πππ₯
Writing thread to make you all understand abt the possible consequence of the margin cricular by SEBI
Aim is to make more pple aware and you can RETWEET for a better reach & show love.
Writing thread to make you all understand abt the possible consequence of the margin cricular by SEBI
Aim is to make more pple aware and you can RETWEET for a better reach & show love.
1- Nto point of now going to LOCAL brokers for insanely high leverage. Lately we saw several retail traders joining local brokers only because they used to offer insane margins and leverage on intraday option selling. By next yr mid almost all brokers will have same margins.
2- The natural gas incident and several such incidents bought into light the perils of malpractices by brokers. For insance if a Fut lot needed 1L ruppees,client could trade that for 2K intraday,now that will slowly stop and so you will mostly get MIS margins by end of 2021.
3- Liquidity will definitely be impacted due to this decision as most algos run by prop desks and HFT traders will be bound to reduce their exposure. Some counters who in these covid era ran up without fundamentals will have liquidity crisis and sell of by next yr mid.
4-From March expect full time brokers to at max give you 4-6x margins and Discount brokers giving 6-8x. Basically this will lead to decline in the screenshot profits too as most used to have heavy leverage.
Note : This may not still stop photoshopped once.
Note : This may not still stop photoshopped once.
5-Regulators would be strict so post May/June 2021 we might see some brokers even reducing the margin call alert (which mostly is 80% drawdown) to somewhat 60%. Basically those who after taking trade used to chant 'Jai Mata Di' till EOD may suffer as sq off will happen early
6-For futures too at max 3-4x on Intraday will be given. The beauty is option BUYERS will have not much effect. There are 2 things in their favor:
-No change in margin
-The reduced margin on hedged strategies as introduced by SEBI last time
-No change in margin
-The reduced margin on hedged strategies as introduced by SEBI last time
7-From Sep 2021 only SETH or those who have full margins will be able to trade with full form GAREEB TRADERS will be forced to either stick to option buying or investing. Till FEB in INTRADAY CATEGORY of all brokers you will get on an avg same leverage(COVER ORDERS excluded)
If you liked the thread,make sure you retweet and like.
And if you wish me to make a video by Sunday/Mon on this topic,just mention in the comment section the LANGUAGE in which you want it : - Hindi or English or Sanskrit?
Keep learning
Keep growing
#AKAL
And if you wish me to make a video by Sunday/Mon on this topic,just mention in the comment section the LANGUAGE in which you want it : - Hindi or English or Sanskrit?
Keep learning
Keep growing
#AKAL
