Hi,
How can Indian Traders trade at Night (after 8 PM IST) or Early Morning (5 AM IST) ?
Which International Markets allow Indian Traders to trade? >>> Canadian/Japanese etc.
I want to do this since I have a job and cannot monitor my trades live during the day.
Thanks.
A domestic alternative would be to look at commodity exchange MCX which trades till 11.30 pm. Globally commodity market is 3x equity market roughly. Domestically we may reach there in coming years. SEBI cleared FPI participation in MCX commodity derivatives lately and this surely is a booster shot for liquidity at MCX.
Also you could automate strategies so that you don’t have to keep watching the screen to trade. That is another option you have.
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How is the risk to reward compared to stocks or FnO?
Just a random question. How good is selling options in mcx. Is there enough liquidity in OTMs ?
So basically you want to do job during the day and trade during night. When will you sleep?
Depends on your strategy. Unlike equity there are no managements, cash flow, balance sheet etc to analyse.
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Would traders make money or lose money in commodities market, generally speaking?
I think they say that many lose in FnO, so what happens with commodities, generally?
Option premiums are really high to eat away. Margins are less relative to equity market. But liquidity is a problem. Only selected strikes at certain intervals have liqudity. See this example on crude oil – the strikes with long horizontal bars shown is where we have liqudity with fairly tight bid – ask spread.
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CL and NG options have adequate liquidity. Margin requirements are quite high though – around 30-35% for oil.