Trade Smart Online

[market oracle]

Why so? RKSV already replied immediately.

 

[TradeSmartOnline]

TradeSmartOnline,

Thanks for the reply. Yes I am aware of those points u mentioned. I guess you misinterpreted my question. What I meant to ask was: when flash crashes happen, they are usually unexpected so for that short time period margin exposure limits cannot be updated imposed by exchanges. Next, what happens if let's say your clients have 5000 Nifty futures contracts long positions and stop loss market order for the same. What if a massive sell order hits the market and triggers major stop losses causing the nifty to go into a tail spin? What will happen if it crashes 1000 points giving ur clients the worst prices for the SL-M orders? In such cases losses incurred are far in excess of the SPAN+EXPOSURE. in such a case the broker has to pay up if he cannot recover from clients. What happens then?

Hello market oracle,
Was out of town. Since this is an important topic, did not want to do an injustice to the same by writing a short reply from cell phone.

You are right, a flash crash kind of an event is not considered in the var margin computation and this is a situation that is not due to market factors and more due to erroneous trades. It affects the sanctity of the entire market mechanism and brings bad name to the exchange. SEBI and exchanges are very concerned about it and have already taken a few measures to minimize such instances. Some of them are as below:

1. An upper limit for a single order has been placed at Rs 10 cr.
2. A dynamic initial price band has been placed at 10% of the stock's previous day's closing price in either direction.

This has reduced the chances of a flash crash but unfortunately not eliminated the same. However, any instance of another flash crash would draw a lot of flak from everyone. You might also want to refer to a Mizuho Securities (Japan) case of J-Com shares for a reference.

The exchanges also have the option to annul trades executed at irrational prices. This was even done by BSE on 26 October 2011 for some freak trades on Muhurat Trading day. However, unlike the US we do not yet have a rule on the same. A specific rule regarding the same might be helpful as people would have more clarity when they stand a chance of having their trades cancelled and should stay away from the markets and not try to hedge their positions with another trade. One sided trades being cancelled in a hedged position is not where one would like to be.

 

[market oracle]

Thanks for the reply. But do you admit that you are also prone to the risk of losing money? Also, in such cases, will NSE investor protection fund relieve the losses incurred? I appreciate your replies even if it is late. Unlike other small deep discount brokers like SAS online, who are indulging in ominous methods to conduct their thread.

 

[ram2010]

Thanks for the reply. But do you admit that you are also prone to the risk of losing money? Also, in such cases, will NSE investor protection fund relieve the losses incurred? I appreciate your replies even if it is late. Unlike other small deep discount brokers like SAS online, who are indulging in ominous methods to conduct their thread.

Its not about TSO. If a massive crash happens, there will be unimaginable consequences.

Better you put your money in Bank FD.

Why you are making baseless allegation against sas.

 

[market oracle]

Its not about TSO. If a massive crash happens, there will be unimaginable consequences.

Better you put your money in Bank FD.

Why you are making baseless allegation against sas.

Baseless allegations? :clapping: Looks like we have another one of those SAAS online boys out here spreading germs in TSO thread.

Because SAS online is conducting it with fake IDs. Let's not dirty this place. I'll take you on in their (UNOFFICIAL thread). :rofl:

 

[cloudTrader]

@ TSO ,

Why have you removed the MIS benefit from Commodities Trading ?

Cover Order means to place Market Order so benefit of Margin is not meaningful in CO as I mostly prefer Limit Orders.

 

[TradeSmartOnline]

@ TSO ,

Why have you removed the MIS benefit from Commodities Trading ?

Cover Order means to place Market Order so benefit of Margin is not meaningful in CO as I mostly prefer Limit Orders.

Hello Leonid,
We haven't removed MIS from Commodities. We are providing 2 x limit in MIS. Seems like some misunderstanding. In case you faced any issue please let us know and we'll look into it.

 

[cloudTrader]

Hello Leonid,
We haven't removed MIS from Commodities. We are providing 2 x limit in MIS. Seems like some misunderstanding. In case you faced any issue please let us know and we'll look into it.

I was placing MIS order yesterday and my order for Crudeoil [4 lots] was getting rejected in MIS, Reason :- Short of Margin , although it was sufficient for MIS . The Margin required for MIS was equal to the amount required for the carry forward trade [shown in Rejection Reason Log].

I will get in touch with your executive next week if this problem persists.

Thanks.

 

[noviceinvstr]

Now Online Issue

I am not able to view best 5 quotes in NOW web. On clicking MBP, it is showing a blank tab.
Using IE11 & Java 8 in Win 7.

 

[TradeSmartOnline]

I was placing MIS order yesterday and my order for Crudeoil [4 lots] was getting rejected in MIS, Reason :- Short of Margin , although it was sufficient for MIS . The Margin required for MIS was equal to the amount required for the carry forward trade [shown in Rejection Reason Log].

I will get in touch with your executive next week if this problem persists.

Thanks.

Sure. Please do.