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Volumes in F&O segment to shrink as peak margin rules kick in today

Zerodha expects F&O volumes to be impacted by 20-30%; new norms aimed at discouraging leveraged bets

Topics
Futures & Options | Markets | NSE

Ashley Coutinho  |  Mumbai 



stocks, sell, share
Brokers typically offered leverage of 4-8 times for intra-day trading in the F&O segment, which could go as high as 30-40 times

Volumes in the futures and options (F&O) segment are expected to shrink by a third in the coming months as the new peak margin norms come into effect from Tuesday. The F&O segment contributes about 90 per cent to the overall market volumes, nearly half of which is intra-day and heavily reliant on excess leverage.

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First Published: Tue, December 01 2020. 06:05 IST

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