Thread by @vivbajaj

In my 15 years plus career in markets, I have witnessed multiple regulatory changes. Some good, some bad. Stock market is one of the most regulated businesses. Reason ? It's about money, honey. If not done the right way, the entire structure could collapse as house of cards.

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Every 4 to 5 years we have seen some major changes in market microstructure in India. Be it STT then removal of income tax rebate on STT,then algo trading,then additional margins on stock futures, then CTT,then introduction of currency cost, then uniform stamp duty etc.

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As markets evolve the regulatory changes becomes inevitable.Infact sometimes, these regulatory changes lead to change in market behavior. It's not about retail vs. institutions.Finally everyone looses if market looses genuine liquidity.I have always moved on at every stage.

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Now the real question is How to deal with the upcoming changes from 1st Sep. Options:

1. Protest
2. Adapt

I have seen '1' has not worked for me in the past. You may like to do it and try. I will be happy as my earning from my prop desks will also get protected.

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But if you want to move on then for point '2' I suggest:

1.If options trading, get into spread trading to get margin benefits.

2.Explore high leverage instruments like currency and commodities, if you are a full time trader.

3.Intraday cash still has 5 times Leverage

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