Day Trading Stocks & Futures

[RadhuK]

How much money do you think a broker needs to deploy if he has eat stops 50 points away?

Mujhey kya pataa??
But broker has the desired info.. how he uses it, its his call

 

[marimuthu13]

I really doubt somebody is spending crores of money to identify and hit SL of so called retails stops... Its not about Nifty Future, spot nifty also has to come down at relative levels...

 

[Riskyman]

Taking out stops is not an easy thing for a broker like zerodha. It requires huge sums of money usually the kind of money thats deployed at Institutional levels. Everyone knows that retailers place their stops few ticks below supports or above resistance.

 

[Self-employedTrader]

How much money do you think a broker needs to deploy if he has eat stops 50 points away?

I think broker business is far profitable than retailer. For a trending stock, at least tens of thousands of people would place orders under a broker wouldn't they? Multiplied by least 20 rs is broker fee for just one time in a day. I don't think they need to hunt 500 or 1000 quantity orders by poor retailers.

 

[Riskyman]

The most important thing for any institutional guy is not just price levels but liquidity. If he is buying then he wants sellers i.e liquidity at a certain level. Now unfortunately this happens to be the place around certain supports where retails place their stops. These stops create liquidity for the Institutional guy. This is the most likely place he can get a fill for his orders. So he is more likely to place his buy bids below support in the hope that market will drift down, hit a few stops and create liquidity for him.

Anyways.. all of this talk doesnt make any sense to me. A stop hit is a stop hit. Doesnt matter who hit it and for what reason.

 

[Self-employedTrader]

The most important thing for any institutional guy is not just price levels but liquidity. If he is buying then he wants sellers i.e liquidity at a certain level. Now unfortunately this happens to be the place around certain supports where retails place their stops. These stops create liquidity for the Institutional guy. This is the most likely place he can get a fill for his orders. So he is more likely to place his buy bids below support in the hope that market will drift down, hit a few stops and create liquidity for him.

Anyways.. all of this talk doesnt make any sense to me. A stop hit is a stop hit. Doesnt matter who hit it and for what reason.

So how does a gap up or down form? Because of this?

 

[Riskyman]

So how does a gap up or down form? Because of this?

Not at all bhai. Gaps happen because of pre market orders. I think someone was already discussing it here.

 

[Self-employedTrader]

Not at all bhai. Gaps happen because of pre market orders. I think someone was already discussing it here.

No bhai. Sometimes my order won't go through because price would open gap down or up from my limit price in 5 min timeframe. A few times. Now I'd favour market orders.

 

[Riskyman]

No bhai. Sometimes my order won't go through because price would open gap down or up from my limit price in 5 min timeframe. A few times. Now I'd favour market orders.

Sorry but whats gapping up/down in the morning got to do with your orders?
Do you place Pre market orders?

 

[Self-employedTrader]

Sorry but whats gapping up/down in the morning got to do with your orders?
Do you place Pre market orders?

No, in intraday itself in 5 min timeframe price would reach a resistance or support, stay there for some time, and then next candle would open with a gap, failing to initiate my order. I guess that may be these institutions bulk orders getting executed first, like you said... I don't do preopen orders, had lessons