Minimum capital needed for algo trading in India?

algotrader

User: BudgetTrader_50k
Subject: Minimum capital needed for algo trading in India?
Want to start algo trading but only have ₹50,000 capital. Is this enough or should I wait and build bigger corpus? What are typical margin requirements for algo strategies in options and futures?

algotrader

Reply by: RiskManager_Experience
Start trading with margin as low as ₹80k for index options according to some platforms. But honestly ₹50k is too less for F&O algo trading. One bad trade can wipe out 30-40% of capital if you dont have buffer. Better to paper trade first or start with equity cash segment algos where risk is lower. Build your capital to atleast ₹2-3 lakhs before doing serious options algo trading.

algotrader

Reply by: Conservative_Advisor
Agree with above. Also remember SEBI report shows 90% of individual F&O traders incur losses with average loss of ₹50,000. This is for manual trading, algo doesnt change fundamental risk. If your strategy has edge then yes algo will execute it better. But if strategy itself is flawed, algo will just lose money faster! Focus on building profitable strategy first with paper trading, then worry about capital size.