Supply – ICICI Sec
Derivatives to money quantity ratio is 422 occasions in India. There’s no nation which comes even near this.
Will there be any points sooner or later as a consequence of this? More than likely
Some specialists stated the ratio calculated utilizing notional turnover of choices is deceptive because the premium turnover, value a purchaser pays for the choice, is the fitting manner on condition that choices account for 98% of derivatives turnover.
Is that this calculated otherwise elsewhere?
Anuj Singhal CNBC-TV18 had carried out a characteristic on this – its a should watch.
I’m not positive.
Looping in @Meher_Smaran. Meher, are you able to ask Som to talk to the parents at ICICI to determine if they’re evaluating notional turnover for all markets?
Btw, one level to notice is that in India, because the SLB (Inventory lending and borrowing) mechanism isn’t energetic, anybody desirous to quick has to make use of derivatives. Additionally from the time restrictions on intraday inventory leverage have been capped at 5x, intraday buying and selling volumes have moved from fairness to FO.
Additionally, if govt/sebi desires to enhance fairness volumes, then from buying and selling viewpoint ( which appears to convey a lot of the quantity), one apparent issue is excessive prices – each intraday and in a single day. Even for somebody holding just for few days, there’s a massive distinction in price.
In my very own case, if prices have been decrease i’d most likely take extra trades however as an alternative i’ve to optimize extra in the direction of edge per commerce. And excessive price of in a single day money is a giant deterrent towards engaged on in a single day techniques in money for brief time period holding. Inventory Futures has subject of issues being banned far too typically. I can’t backtest for that and it brings in pointless uncertainty.
A number of restrictions in India and index is straightforward/liquid manner out.
Thanks @viswaram, might you please share the hyperlink for that, if potential?
@viswaram Thanks a lot for sharing this hyperlink.
Weekly Expiry Choices Buying and selling has gone by way of the roof. What an enormous enhance within the quantity! And each month it’s going larger and better.