Trade Smart Online

[timepass]

Hello VNS,

Suppose BNF is trading at 11450, then how much intraday margin will I need for the following orders.

1) Buy above 11455 (limit 11457)
2) Sell below 11445 (limit 11443)

How much margin if I place both the orders together ?

Hello timepass,
Will reply to your msg tomorrow.

Knock..knock.. anybody home ?? Looooong new year party I guess

 

[mastermind007]

Hello mastermind007,
We agree with you that as long as the funds are available in client's account it should be allowed.

However, if you refer to the scenario 2 mentioned in our knowledge base article How is the STT computed in case an in-the-money option contract expires?, you'll notice that the STT alone on a Rs 100 option comes out to Rs 381. Trading software does not have the capability to block premium+STT as a margin.

Moreover, on the expiry day due to the high STT priced in, some of the in the money options may seem attractively priced and seem like an assure way to make a profit. This has mislead many of our clients into buying them even at times like 3:28 pm when we can hardly give them any alert/warning. They have lost huge amounts due to this.

Though we do send messages and emails to our clients who have an in-the-money or at-the-money positions, it becomes very difficult to manually warn everyone if they are to place a trade towards the end of the day.

In our view losses in buying-selling decisions are very different from losses due to lack of information about the tax structure.

Also, we are blocking only overnight positions on the buy side in options to avoid our clients losing money due to the high STT. Sell side is still open and intraday positions also open. Most of the strategies can still be implemented with this blocking.

If you have a better suggestion which takes care of the interest of our clients you are welcome to share the same with us.

My humble suggestion would be as follows:

Instead of blocking a trade, can you place a Warning/confirmation with Yes/No choices that goes something like "Failing to Square off this Options trade before 3:xx PM on Expiry day will significantly increase your STT liability by xyz/- which shall be over and above the margin amount already deducted. Are you sure, you want to continue?". If users chooses Yes, execute the trade.

If you have exact formula to workout STT, you can use the actual amount.

Now, you are protecting your own financial risk (client had margin but not enough to cover STT) and well as warning customer from making any unintentional trades.

 

[TradeSmartOnline]

Knock..knock.. anybody home ?? Looooong new year party I guess

Ok. Coming back to your query.
So we understand both these orders are stop loss orders. Right?

In this case, margin will be required only for the first order. The second order if executes is going to just square off the 1st order and hence should not require additional margin.

Is there some issue you noticed here?

 

[TradeSmartOnline]

My humble suggestion would be as follows:

Instead of blocking a trade, can you place a Warning/confirmation with Yes/No choices that goes something like "Failing to Square off this Options trade before 3:xx PM on Expiry day will significantly increase your STT liability by xyz/- which shall be over and above the margin amount already deducted. Are you sure, you want to continue?". If users chooses Yes, execute the trade.

If you have exact formula to workout STT, you can use the actual amount.

Now, you are protecting your own financial risk (client had margin but not enough to cover STT) and well as warning customer from making any unintentional trades.

Sure. Just spoke to the NOW team about the same. Have passed on your feedback. They will discuss internally and let us know.

 

[timepass]

Is there some issue you noticed here?

No issues. Just asked, for confirmation.

 

[Mihir Bijur]

What are the charges for NOW payin? Will it reflect instantly if done outside market hours?

 

[TradeSmartOnline]

What are the charges for NOW payin? Will it reflect instantly if done outside market hours?

Hello Mihir,
There are no charges for making a payin using NOW fund transfer.

NOW flushes it's payment data everyday between 1 AM - 3 AM. So, if you transfer the funds after 3 AM then it'll automatically get added to your limit.
At the same time any transfers made before 1 AM might get flushed out and might not be automatically available for trading. This limit is then manually provided by us from our end.

 

[traderite]

Hi TSO ,

I am now trading with you.

Above I have posted an image which shows that a 2 Legged MIS Spread Order was rejected at 3:09 pm.

I want to know that by what time you stop allowing MIS orders ?

I placed this order for a quick scalp trade. The trade would have lasted for maximum 5 minutes.

Can you tell that at what time you start Squaring Off MIS positions ?

Thanks.

 

[thehalfbloodprince]

Dear TSO,

Wish list for 2014 -

* Please do something about the process of pledging of shares/ETFs for margin. Currently I am being requested to fill an form, print it and courier it to you to avail of margins. I am not even complaining about processing fees/amount of margin etc - but at least I should be able to do the process through back-office/NOW. The process is so cumbersome and ineffective that I cannot adopt some strategies on your platform and am being forced to trade them with full service brokers.

* Please look at providing margin on LIQUIDBEES in some way - even the other discount brokers like Zerodha have started the same. You can work on the margin/charges numbers in a way that makes sense for you - but at least the facility should be there.

The above two issues have been by biggest grump with TSO and I hope you can do something about it

 

[traderite]

Hi TSO ,

I am now trading with you.

Above I have posted an image which shows that a 2 Legged MIS Spread Order was rejected at 3:09 pm.

I want to know that by what time you stop allowing MIS orders ?

I placed this order for a quick scalp trade. The trade would have lasted for maximum 5 minutes.

Can you tell that at what time you start Squaring Off MIS positions ?

Thanks.

@ TSO, in the above image,

Reason For Rejection :
16104 - System Could Not Complete Your Transaction .

Can you please specify what is the reason 16104 ?