Abhay meeting 21 Sep- 2.m4a.mp4

21 September

19 min

failed

Linked: Hedged

Speaker A 00:09 · This particular trade, right? This particular trade, from my understanding, I believe you were there when he had taken the session. Yeah, right. So he had said that we expect a fall and then we expect—

Speaker B 00:24 · No, no, I don't think he specifically discussed about this trade.

Speaker A 00:27 · No, no, not this trade. I'm saying because I have had a discussion with him. He said when the fall occurs, that is when there is going to be a modification in this. Okay, right. There is going to be a modification in this.

Speaker B 00:39 · And what is the horizon for this?

Speaker A 00:41 · December? This is a 1-year-plus trade, right?

Speaker B 00:46 · Yeah, 26th, December 26th.

Speaker A 00:48 · Yes, this is a 1-year-plus trade. And in general, if whenever that whenever there is a bigger movement in Nifty. that is when the legs will change here, right? There is a— that is when the legs will change here. Okay. I was also trying to understand from your end, if you're even— even if you decide that, you know, I want to invest as an equity, you see that, okay, though it's a good place to invest, what is the maximum amount that you're trying to invest?

Speaker B 01:26 · Whatever is available. Okay, so so currently I'll tell you the all the agenda points that I wanted to discuss. So we can probably merge few topics together.

Speaker A 01:36 · Yes.

Speaker B 01:37 · So one is also you being able to execute the trades yourself. I think I had a conversation with Rajat on this. He said there is some restriction of. you executing those trades on behalf of your clients. Previously, during the session that happened, Rahul and I think Praveen, they both mentioned that we don't have to do anything and if we only have to click one button. But that also they will take care of it if the Broker is choice.

Speaker A 02:19 · Okay, in general.

Speaker B 02:22 · So this is one topic. I'll cover the topics. And if if some of the points are not finalized or they're not you want to discuss with and finalize with someone else, I can take it. Later as well.

Speaker A 02:44 · So that's all right. Yeah, but I would just like to jot them down nonetheless.

Speaker B 02:56 · That that point was trade execution by hedged.

Speaker A 02:59 · Okay.

Speaker B 03:00 · And then the second point is use of available funds. Can I use it for equity or only for trades? And like you mentioned, if you can just confirm and tell me if I can again pledge those equities and get the margin. Like you said?

Speaker A 03:18 · No, no, this I'm very sure of. All right, but preferably do this when you exit a trade. So what is going to happen is when you exit the trade, those funds become free, right? Those funds become free. You can buy whatever you're looking to buy and then pledge it. Okay, now, now, now what happens is, for example, this current trade is there. If this closes by tomorrow, well and good. Or you can decide, you know what, I'll buy certain amount today, pledge it, then buy a certain amount and then pledge it. But currently this I'm sure of that you can buy up to 30-odd lakhs.

Speaker B 03:58 · Okay. Okay, any other trades that we have ongoing currently that I can get into?

Speaker A 04:14 · No, no. So what they are planning to do is they plan to get out of this 2287, 2287, and then in 3 or 4 days they'll give another trade. So ideally that is the timeline when you can decide, you know, I want to buy equity. Or even if you decide not to buy equity, the other way of going about it is, okay, I've got this much funds, I can take equity worth 5-odd lakhs, then pledge it, and then buy again. What happens is that money comes into the trading account as it is. So you might have to do it in steps instead of one go, because if you do it in one go, then that odd trading capital that is available, it goes out of the window, and that can cause an issue.

Speaker B 04:57 · Okay, and another point that I want to confirm regarding the investee is the amount that it is blocking.

Speaker A 05:06 · Okay, the current amount that it is blocking.

Speaker B 05:08 · Yes, and at that time I only had for twenty-five lakh rupees of investment. So I only purchased three lots of it.

Speaker A 05:17 · Yes.

Speaker B 05:18 · So that is that is all. These are the points again. The last point that I, again, as a courtesy, I'm informing you that I plan to see how the performance goes in the month of till the month of November and December, and then I'm planning to exit.

Speaker A 05:36 · Fair enough.

Speaker B 05:37 · So if if it goes well, then it's good. I might plan to continue again, but it depends on the return of on investment.

Speaker A 05:47 · Hundred percent.

Speaker B 05:48 · Considering the returns, considering the fees. So that's the plan. Those four points I plan to discuss.

Speaker A 05:57 · But I would just say see about till December, right? Very fair. See about till December, and I understand that you are looking to invest in equity, right? I would just say if in two or weeks they give some certain stocks because they will give stocks. Only when they know that users have capital available, and they will only have available when it is not utilized in trades. Right? If they give the stocks, I would personally say please do take them.

Speaker B 06:29 · Okay. And right. And situations like these where I see trade funds which are available for trading around fifty seven lakh rupees. So should I take some trades? Hold on to them. Let's say view the available fund section on a daily basis or a weekly basis to see if I need to exit from the other invested trades which might be utilized in the current trades.

Speaker A 06:57 · Okay, so the better way to go about it is when you take the trades, right? When you take the trades, there is usually a capital. They say that this is the capital requirement.

Speaker B 07:08 · That that I am aware.

Speaker A 07:10 · Right.

Speaker B 07:10 · Based on that only you are recommending me the number of sets. Right. But the trade does not use the entire fund for the entire period.

Speaker A 07:18 · Yes.

Speaker B 07:18 · So for me personally, I can definitely optimize my capital even more.

Speaker A 07:24 · I'll tell you the best way to go about it.

Speaker B 07:28 · How do you do for your in-house clients?

Speaker A 07:31 · For for them. For the FM clients that we have here, right, there's an FM house. There they take care of everything, right? There's an equity dealer team inside. They know how much capital the person has. They can see it. Once in a month they check up with the client stating that this is what is going on and this is the capital they have available. But in that case, they have to a large extent Access to your trading account to a large extent, right? So that is how they come to know. But when when you're saying it and you decide that you know I want I see some funds free maybe I should use it. The best time to do that is on a Wednesday. On a on a Wednesday. The reasoning is very simple. On Tuesday, the capital requirement increasing if there is an expiry on that day. Okay. For example, the current trade has some expiries of tomorrow, so I'm very sure that tomorrow the margin requirement increases. Okay. And I'm very sure that on Wednesday the margin requirement decreases. Okay. So ideally, if you're looking to go about it, Wednesday, Thursday is the great time. And as soon as you buy it, you do please pledge it, right? And In case even you're looking to buy, you can probably drop me a message or Rajat a message. We might not say promptly, but 15-20 odd minutes, you'll get an answer on that as well.

Speaker B 08:59 · On, on what? Whether I can—

Speaker A 09:03 · On this is the amount I'm looking to do.

Speaker B 09:04 · Okay.

Speaker A 09:05 · Right, because ideally we want that amount to come back again as soon as it comes, as soon as, uh, you send it. Uh, ideally we want it to be replaced the next or the very— or 2 days afterwards. Because if you decide to do that on probably a Monday and the margin shoots up on Tuesday, then it's a bit of a trouble.

Speaker B 09:25 · But again, then my point is, is my capital fully utilized? In your cases with FM clients, do you not fully utilize the capital? Let's say 22% 5% unutilization, underutilization is still fine, I believe.

Speaker A 09:46 · No, but, but that's the thing though. So, so majority of the money, right, majority of the money is made on the expiry, right? That is where the money is, because that is when if you have sold an option, it comes to zero. That is where the majority of the money is coming. But I also know that the On expiry, the margin requirement increases. So it seems during the week it's not being utilized, but on Tuesday it is being utilized.

Speaker B 10:16 · Okay.

Speaker A 10:20 · Right, so right now it might show that only, let's say, 40-50%, and suddenly on Tuesday majority of it is utilized. So unfortunately for that particular day, we have to keep the money, right? Of course, in your case, you're saying you could be active, or you have somebody who could be active for you. It's not possible for everyone. So when we make the trade, we make it that, you know, once you have put in, you don't have to put in any more money.

Speaker B 10:49 · Okay. And can someone else, or can the trades be executed automatically by your system?

Speaker A 10:57 · So, so that way, there is a limit Like, for example, I think I'd spoken to your EA to set it up. So, so the way it functions is if there is a particular period wherein you know that I'm super busy, yeah, right, I'm super busy, you can send a mail. I can send you the format of it, and you can say, you know, from here to here I'm super busy, uh, please let somebody take care of the trades, right?

Speaker B 11:22 · Uh, I would rather have it always. So, um, let's say if I—

Speaker A 11:31 · I can—

Speaker B 11:31 · can I send an email to, uh, to say that I'm busy till the end of October?

Speaker A 11:36 · Till the end of October?

Speaker B 11:39 · Yeah.

Speaker A 11:39 · So, uh, yes, till the end of October works. But okay, the thing is, um, this— the system there, they the equity dealer team takes, it is majorly meant for FM clients, right? And what they ideally want in AOS is that the system is not flouted, because what's going to happen is somebody's going to say I'm till October and then say now I'm till November, now it's till December.

Speaker B 12:11 · Yeah, that's what I plan to do.

Speaker A 12:13 · Right, so for that I'll have to speak to someone, right? But if you say that तिल अक्टूबर, देन आई कैन ऑब्वियसली स्पीक विथ समवन एंड दैट कैन बी टेकन केयर ऑफ। बट अगेन इन दैट केस आल्सो एवरी एवरी थर्टी ऑन डेज़, दैट एपीआई हैज़ तू बी रिसाइन्ड। या दैट हैज़ तू बी रिसाइन्ड। या बट मॉडिफिकेशंस कमिंग ट्वाइस अ डे एंड प्रॉब्ली मोर देन ट्वाइस high, I have to wait for a very long time to see if it is completed or not, if it is in progress.

Speaker B 12:49 · It is same, 100%.

Speaker A 12:50 · I completely understand that. So, so what we can do is, uh, probably in, uh, till October, right? Till October, I'll just give you the mail format. We can ensure that the trades are taken from our end, and during that period you can also See the modifications that have come in the trade, and you can decide, you know. Okay, I can anyway.

Speaker B 13:15 · Anyways, look at the WhatsApp group. Yes, the number of trades, the modifications.

Speaker A 13:36 · अच्छा सिंपल कॉल ऑटोमेटिक कोर्सेज करोगे 12 लाख, 12 लाख, राइट? So this execution thing, what I would say is you can have a look at till October when the new trade comes in, how many modifications are taking place. Because I can completely understand with the number of modifications in this 3 months, it is tiresome and I can see.

Speaker B 16:33 · And specifically for my use case as well, I usually stay up till late for my clients' work. So I work in US hours, right? And it is difficult for me to get up at 9:30 just to execute the trades. Okay. So it is causing honestly disturbance in my sleep and anxiety.

Speaker A 16:58 · Okay. I will speak to the team. Okay. तो अक्टूबर आई कैन सेफ्रॉम माय एंड फॉर द रेस्ट ऑफ़ द पीरियड आई नीड अ लिटिल बिट ऑफ हेल्प फ्रॉम द बॉस देयर एस वेल। ओके, राइट। बट तो अक्टूबर इट विल बी डन। शुक्रिया। ओके। एंड आई एम जस्ट क्यूरियस, व्हाट इज़ व्हाट इज़ योर स्कोप ऑफ सर्विसेज़ व्हेन यू वर्क फॉर One time he's going to set it up and then he has to do nothing from his end.

Speaker B 17:34 · Okay, I thought it was also portfolio management services.

Speaker A 17:37 · No, not— that's a part of it but it's not being done actively right now.

Speaker B 17:42 · Okay.

Speaker A 17:44 · Okay, I think I'll also send you the list of points that are still probably not closed, capital requirement for the investor No, no, but capital requirement for the index trade, I can tell you from my end, if there are 3 sets, please take into consideration that the capital that is required for the trade on the higher side would be 9-odd lakhs.

Speaker B 18:06 · All combined?

Speaker A 18:08 · All the 3 sets combined. This is just the derivative legs I'm speaking about. Okay, right. 9 lakhs is the higher side I'm telling you at this point of time. Right.

Speaker B 18:20 · So ideally, when this trade closes 2287, 1.07 minus 9 lakhs is what I am available to use. But if I purchase more equity during that time and pledge it again, then that will be the revised amount.

Speaker A 18:38 · That is, yes, of course, that amount will be a little lesser than more.

Speaker B 18:41 · Of course, yes.

Speaker A 18:42 · Yeah, but that is the idea. Okay.

Speaker B 18:44 · It depends on the percentage.

Speaker A 18:46 · Yes, yes. What I'll do is I'll reconfirm and I'll send you another message for it as well, for the Invest India, how much capital has been moved.

Speaker B 18:56 · Okay, okay. I think I'm done.

Speaker A 18:58 · Would you like to eat something or something?

Speaker B 19:00 · No, no, I'll have my lunch later on.

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