Comment on Intraday leverages reduced across the board

Navjiivan commented on 04 Jan 2020, 09:21 PM

This kind of change is brought by the SEBI for the benefit of institutional traders and other traders with high investment. As intraday traders were able to write options with the help of leverage, number of option writers increased and the option premium collected decreased. As these big shots are worried about being in competition they seeked the help of SEBI and regulated this idiotic move. If varying leverage was their concern they would have limited the intraday leverage to 8x or 10x. Why stop it ?

So clearly this move is against the retail traders and is favorable to big players. Trading is an art and they want only the big players to do option writing / trading futures avoiding the skilled intraday traders thereby reducing the competition.

And I am ashamed of zerodha for supporting such a move form SEBI. When citizens from other countries are trading in binary options, digital options with a leverage of 100X, SEBI is worried about 8X leverage.

SEBI’s rules always favors the big players leaving the retail trader’s sentiment behind.

View the full comment thread »