Friday, June 19, 2015

Why F&O in Indian Equity Market

F&O trades are for big players and should be used as hedging tools. But in our system, a small investor even with Rs 50,000 capital can enter into F&O space. He may earn something initially but eventually ends up with no money and broken heart. We should have the minimum margin amount of Rs 1.00 Cr. for F&O trades and all F&O trades should be settled through delivery on the settlement date.
The so called investors and FIIs surely will not like this but we have to protect our people. We need to turn them into productive activity not in speculation.

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