Upstox - RKSV - Trade in Rs 20 Max

[TradeRaid]

2) Cover orders for options have been launched. Many of you have also been enabled for market orders on option buying (you can try placing an order and see if you get rejected or not -- or just email us at [email protected]). Also a blog post on the topic -- http://www.rksv.in/blog/2014/02/cover-orders-for-options/.

I was checking out the blog on cover orders and feel it's incomplete or even misleading. I want to know what happens if I buy at Rs. 30. What is my SL range? Do I get margin benefit for buying CO? What if I want to sell an option at Rs. 20? Where is my SL?

 

[looser89]

cover orders with limit order and stoploss is more useful than market orders. in intraday trade with market order is risky when price move fast

 

[RKSV]

I was checking out the blog on cover orders and feel it's incomplete or even misleading. I want to know what happens if I buy at Rs. 30. What is my SL range? Do I get margin benefit for buying CO? What if I want to sell an option at Rs. 20? Where is my SL?

Cover Orders are only for option selling. Span + Exposure is charged on Option Selling but for option buying it's only premium amount (which is pretty small compared to Span + Exposure). There is no separate margin levied on a SL order.

So if you bought an 6000CE Option on Nifty, the price is around Rs. 200. One lot is Rs. 200 * 50 = Rs. 10000. An SL-M won't take up any margin so you'd be charged Rs. 10000.

Conversely, if you sold 6000CE Nifty Option, the Span + Exposure margin comes close to Rs. 28,000. The SL-M order normally wouldn't help you -- but with cover orders, the margin requirement comes down quite a bit.

SL range is 20% for option selling. Range for Rs. 20 option is up to Rs. 24.

Hope that helps.

 

[timepass]

Cover Orders are only for option selling. Span + Exposure is charged on Option Selling but for option buying it's only premium amount (which is pretty small compared to Span + Exposure). There is no separate margin levied on a SL order.

So if you bought an 6000CE Option on Nifty, the price is around Rs. 200. One lot is Rs. 200 * 50 = Rs. 10000. An SL-M won't take up any margin so you'd be charged Rs. 10000.

Conversely, if you sold 6000CE Nifty Option, the Span + Exposure margin comes close to Rs. 28,000. The SL-M order normally wouldn't help you -- but with cover orders, the margin requirement comes down quite a bit.

SL range is 20% for option selling. Range for Rs. 20 option is up to Rs. 24.

Hope that helps.

Using the same example, how much would be the margin required using cover order and how much using the regular sell MIS order ?

 

[RKSV]

Using the same example, how much would be the margin required using cover order and how much using the regular sell MIS order ?

1) Regular MIS - Rs. 28,000 * 50% = Rs. 14,000. (2X leverage)

2) Cover Order - Rs. 7,905. Logic is explained in this blog post: http://www.rksv.in/blog/2014/02/cover-orders-for-options/

 

[gvrdaytrade]

hi rksv,

small doubt in cover order, pls clarify..

if i bought dlf at 145 with stoploss of 142 in cover order..

can i trail the stoploss to 145 when it moves to 148.

if it moves 155.. can i trail the stoploss to 152.

its possible in cover order.. pls clarify about CO

thanks..

 

[RKSV]

Thin line between cocky and confident, guess your team hasn't seen the integrated backoffice of ICICI, sharekhan, geojit etc.. In fact there is no BO, everything is synchronized to the trading platform instantly, I don't have to wait for your end of day processing to get to know my reports..

User friendly? If I have bought futures 10 days back, I can't find out the buying price on trading platform, and I will have to figure out manually on your BO..

:clapping::clapping: Yep definitely Smarter and most user friendly...

Weren't trying to be cocky, maybe our language could have been better. You could be right. UI/UX is a subjective matter as to what is better or worse.

Live updates isn't possible when you don't have tight integration between B-O/F-O. So yes, they do have us beat over there

Will take your suggestions to keep pushing us to deliver better products.

 

[ram2010]

hi rksv,

small doubt in cover order, pls clarify..

if i bought dlf at 145 with stoploss of 142 in cover order..

can i trail the stoploss to 145 when it moves to 148.

if it moves 155.. can i trail the stoploss to 152.

its possible in cover order.. pls clarify about CO

thanks..

No its not possible.Range for default stop loss is entry price + 3%.

So the range will be 142 to 145.you can modify the sl in between the range.
you can't trial.

only way to book profit is exiting the order at market rate.

 

[RKSV]

hi rksv,

small doubt in cover order, pls clarify..

if i bought dlf at 145 with stoploss of 142 in cover order..

can i trail the stoploss to 145 when it moves to 148.

if it moves 155.. can i trail the stoploss to 152.

its possible in cover order.. pls clarify about CO

thanks..

Cover orders don't have trailing stop losses.

Bracket orders have a feature to enable trailing stop loss. We are working on getting that released in the coming months.

 

[SuperSaiyan]

@ Mailmeantara

NO one is virgin .. stock market has has fcked us all min one time lol
I myself has loss of 222K lol this expiry but hey i have made enough already to cover my loss in past .. One bad trade can ruin the life.thats Overtrading

Trading 1 lot of nifty if u have 60K in account in my eyes is safest .

I am still waiting for RKS to Enable atleast NIFTY SL_M order buy from RKSV.
it;s end of month there is no sign of them to enable that for all client Or atleast me

seems like from 1st have to go back to zerodha .Only reason i came to them was brokerage and reliability.

but no point to continue with them How am i suppose to pay them brokerage if i am not given the tool i use most.

They don;t give u sword to fight in war.
SL_M buy order in nifty option is my sword in trading world