From 1st of May 2020, the margin required to trade will change as per SEBI Circular SEBI/HO/MRD2/DCAP/CIR/P/2020/27, Dated: February 24, 2020.
Here is a snapshot:
Cash market (intraday) – NO CHANGE in margins.
Option Buy (Naked or Hedged) – NO CHANGE in margins.
Option Sell (Naked) – NOT MUCH CHANGE in margins for Index, but for stocks, the margin will increase.
Future Buy/Sell (Naked) – NOT MUCH CHANGE in margins for Index, but for stocks, the margin will increase.
Option Sell (Hedged) – MARGIN CHANGE – Margins will REDUCE by a whopping 60-70%.
Future Buy/Sell (Hedged) – MARGIN CHANGE- Margins will REDUCE form 60 to 21% in BOTH Index & Stocks.
All my strategies of Option & Future are hedged – so in a strategy where 1.6 Lakh is required, the margin required will be reduced to 48,000 only.
This will effectively INCREASE the ROI by a HUGE percentage.
I cannot tell for sure unless I take a trade on reduced margins but here is a guess:
3,500 (approx profit right now on 1.6 Lakh margin per month) / 48,000 (1.6 Lakh margin reduced to 48k for the same trade) * 100 = 7.29%
Which means the ROI (Return On Investment) may increase by 4.29% to 7.29% per month
The picture will be more clear when the new rules come into effect and I start getting feedback from my old clients and I take a couple of trades myself.
Too excited. 🙂
You Can Read More On My Site
Links to my course testimonials pages:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
What Others Charge for Courses
Bank Nifty Course Testimonials
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
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Dilip Shaw, Founder
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