Comment on Intraday leverages reduced across the board

Guest commented on 05 Jan 2020, 02:35 AM

Small Future traders will face difficulty-
Previously traders have enough money to face MTM loss due to low margin requirement. Now traders will force to square of as MTM loss build up easily due to high margin requirement.
Many traders will bound to trade with insufficient capital (not enough space to face MTM loss) in future market.
Small traders will loose money in future market more easily.
Same logic applicable for almost all intraday equity traders who used to trade with leverage.

Small Option Traders will face difficulty:-
And small trader who used to sell intraday options with leverage will shift to option buying mode due to very margin requirement, they will face huge loss sooner or later.
We all know profit making consistently with option buying is the toughest job in this market.

So this new rule will not protect small retail traders but definitely harm them.

Now a days more and more small retail trader are writing options using intraday leverage and making some profit. So big traders lobby who are facing competition now may be behind that move.

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