Actually, net-worth is two type:- liquid net worth and illiquid networth.
Here in trading purpose, only liquid networth is considered. Unfortunately, most of the small retailer traders have no idea about it as they are not used to such terms yet.
Liquid Networth- The part of an individual's
net worth that can be readily turned into cash.
Liquid net worth includes investments such as stocks and mutual funds, FD, but does not include
assets that are difficult to readily convert, such as real estate or cars etc.
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And there was the report already published that the
maximum exposure will be limited to only 40-50% of the networth. So, I am not really sure what liquid net-worth is required to trade just one lot Bank Nifty Future!
If anyone has a clear idea share your view.
Even for big volume traders, such regulation is very dangerous to manage the risk using position size. They can't increase the position size when they required. This is dangerous for risk management for big volume traders too. They will automatically drop volumes.