Supply – ICICI Sec
Derivatives to money quantity ratio is 422 instances in India. There’s no nation which comes even near this.
Will there be any points sooner or later because of this? Almost certainly
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Some specialists mentioned the ratio calculated utilizing notional turnover of choices is deceptive because the premium turnover, value a purchaser pays for the choice, is the appropriate method on condition that choices account for 98% of derivatives turnover.
Is that this calculated in another way elsewhere?@nithin
Anuj Singhal CNBC-TV18 had finished a function on this – its a should watch.
VijayNair:
Is that this calculated in another way elsewhere?@nithin
I’m not positive.
Looping in @Meher_Smaran. Meher, are you able to ask Som to talk to the oldsters 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 brief has to make use of derivatives. Additionally from the time restrictions on intraday inventory leverage had been capped at 5x, intraday buying and selling volumes have moved from fairness to FO.
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Additionally, if govt/sebi needs to enhance fairness volumes, then from buying and selling perspective ( which appears to carry many 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 giant distinction in price.
In my very own case, if prices had been decrease i might most likely take extra trades however as an alternative i’ve to optimize extra in direction of edge per commerce. And excessive price of in a single day money is a giant deterrent in opposition to engaged on in a single day methods in money for brief time period holding. Inventory Futures has concern of issues being banned far too usually. I can’t backtest for that and it brings in pointless uncertainty.
A number of restrictions in India and index is straightforward/liquid method out.
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Thanks @viswaram, may you please share the hyperlink for that, if doable?
https://twitter.com/_anujsinghal/standing/1695713597484388761
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@viswaram Thanks a lot for sharing this hyperlink.
Weekly Expiry Choices Buying and selling has gone by means of the roof. What a large improve within the quantity! And each month it’s going increased and better.