Has India’s Options Market surpassed? This is what Nithin Kamath says

Has India’s Options Market surpassed? This is what Nithin Kamath says

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Co-founder and CEO of Zerodha Nithin Kamath rejected growing concern about excessive leverage on the Indian markets and said that comparisons with the United States are “defective” and “misled”. In a social media post on Thursday, Kamath said that critics point to the rising volume of option contracts in India as a sign of speculative excess, overlooking important facts – especially the actual financial exposure and value of those contracts.

“It is ridiculous to see that people compared trade volumes compared to India and the US and claim that we are overloaded,” Kamath wrote. “The comparison itself is inadequate. People often look at the number of traded contracts, not the premiums or the actual value.”

Kamath argued that India is considerably less looms than the US, even after he had reported the relative adulthood of the two markets.

He mentioned data to underline his point: the American margin financing market, equal to India’s Marge Trading Facility (MTF), recently crossed $ 1 trillion, while India remains less than $ 10 billion.

Similarly, a brief interest in American shares is estimated at about another $ 1 trillion, while the stock loans and the Leens Segment of India are still negligible.


“Calling the US a gambling company would not be unfair,” Kamath said, pointing to bets worth $ 210 million that was recently placed on whether the Ukrainian President Volodymyr Zensky would wear a suit on NATO -Top. He added that speculation all the span of stock markets and crypto to sports, casinos, casinos, and forecast market. Volumes have risen, largely powered by investors. Market regulations, including Sebi, have their concern about the increasing participation of the retail trade in products with a high risk, with discussions that run around potential guarantees.

Kamath argued that although the number of traded contracts may seem large, the exposure they represent is much lower than observed. “This constant story that we somehow overload dangerously, only because of the number of option contracts traded … well, misled,” he said.

The markets of India, he added, remain a “drop in the ocean” compared to the US in terms of leverage and risky appetite.

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