Intraday Margin Rule Impacting Commodity Futures Trading Volume | Where Does It End?

Two main components are present in the market that maintains the momentum of the market and also helps traders to be focused towards generating profits.

Those two components are : Margin and Expenses. MOre the margin and less of the expenses keeps the trader focused towards meeting his financial goals.

Today in this video we are going to talk about how Intraday MArgin Rule is affecting Commodity Futures Market.

Peak margin is the maximum margin obligation of a market participant at any given time and applies to both equity and commodity derivatives.

The new rule is being implemented in four stages beginning December 2020.

Between December 2020 and February 2021, traders should have maintained at least 25 per cent of the peak margin.

This requirement moved up to 50 per cent between March 2021 and May 2021.

It further rises to 75 per cent between June 2021 and August 2021 and to 100 per cent from September 1 onwards.

Higher margin needs can discourage participants and the recent data suggest the same. But that is not the only setback the traders face.

According to Narinder Wadhwa, President, Commodity Participants Association of India, “If the third phase is implemented as planned in June, futures volumes will shrink further and there will be higher impact cost.

For that matter we have also started a petition against SEBI Intraday Margin Rule we need your support :

Sign the petition here against SEBI Intraday Margin Rule: https://bit.ly/3sinm5d

Follow us here:
Facebook – http://www.facebook.com/adigitalblogger/
Twitter – http://twitter.com/adigitalblogger
Facebook group: http://bit.ly/3srNZ8X
The logos used in the video belong to their respective owners

A Digital Blogger, in no way, claims any of the copyright images or content”