Zerodha - Number One Discount Broker in India

[amsin21]

Re: Position carry forward - doubt

Dear Zerodha,

Yesterday (30/08/2013) I shorted 1 lot of Nickel Mini 30 Sept expiry @930.60. The close price was 925.90. The same was carry forwarded, but with the close price as my sell price, not 930.60. Also how is the profit/loss calculated, is it daily or at the time of square off?



Please correct me if I am wrong.

Regards,

Amsin,

On the terminal, all prices today will show based on yesterday's closing price and not the price at which you bought/sold.

In futures, there is an everyday marked to market(profits credited and losses debited). So typical process is that if you shorted at 935 and market closed at 920, your profits will be credited to your trading account and the new price for tomorrow will be the closing price..

Hopefully this clarifies..

Thanks Zerodha,

That means 930.60 sell rate is valid for the first day (30/08/2013) and for the second day (31/08/013) the sell rate will be previous day's closing rate, ie; 925.90 and second day P/L calculation is based on 925.90 and closing price for second day. Am I correct?

Do the profit or loss credit/debit happens on the same or T+1 day?

Please clarify my doubt.

 

[virgoakb]

Zerodha, I have heard you guys have a proprietary trading desk.

Could you clarify if the risks are curtailed to the prop desk itself without spreading to the clients side?

I mean we all know what happened to one of the biggest brokerage house in the US called MF Global and their prop desk.

I dont want to sound accusing or anything like that.

Even an arbitrage kind of trading strategy most props use tends to have some risks. Just wondering if there are mechanisms in place at Zerodha to prevent risk from spreading from the prop desk to other parts of the core business.

Hi Zerodha

Please answer the above query. It is important for everyone

I know govt. mandates that the broker account and client account should be kept different. But why don't the govt. just disallow the broker from doing prop. trading.

I mean the broker should not be allowed to do trading himself. For prop. trading there should be a separate company. that way the chance of MF Global scenario is totally eliminated.

but thats Just my simple view, and applies to all brokers including the biggies like SBI, ICICI. Please share your view. and also give some insight into how this risk is eliminated at Zerodha.

Secondly in the unlikely scenario of Zerodha going bankrupt (.0000000000001% probability), what is policy of Zerodha towards its clients. I wonder if Zerodha has given this aspect a thought and discussed internally some plans to handle post bankrupt situation?

I hope to get some insight into this from you. I know other brokers will not be very forthcoming on this. But I trust Zerodha to be open and help all the investors.
Your reply would also help those trading with other brokers to become more aware of the risks and their responsibilities. So I request you to give this topic a well deserved and complete reply.

I have searched on net but didn't find anything good on this topic.

thanks.

 

[nirbhay Dixit]

HI,

I could i find out

1. How much money I made last year.

2. How much money i paid for brokerage and transaction cost last year.


Regards

Nirbhay Dixit

 

[Zerodha]

Re: Position carry forward - doubt

Thanks Zerodha,

That means 930.60 sell rate is valid for the first day (30/08/2013) and for the second day (31/08/013) the sell rate will be previous day's closing rate, ie; 925.90 and second day P/L calculation is based on 925.90 and closing price for second day. Am I correct?

Do the profit or loss credit/debit happens on the same or T+1 day?

Please clarify my doubt.

Yes you are correct.

Settlement in f&o is T+1

 

[Zerodha]

HI,

I could i find out

1. How much money I made last year.

2. How much money i paid for brokerage and transaction cost last year.


Regards

Nirbhay Dixit

PNL statement will have both the details..

 

[Zerodha]

Hi Zerodha

Please answer the above query. It is important for everyone

I know govt. mandates that the broker account and client account should be kept different. But why don't the govt. just disallow the broker from doing prop. trading.

I mean the broker should not be allowed to do trading himself. For prop. trading there should be a separate company. that way the chance of MF Global scenario is totally eliminated.

but thats Just my simple view, and applies to all brokers including the biggies like SBI, ICICI. Please share your view. and also give some insight into how this risk is eliminated at Zerodha.

Secondly in the unlikely scenario of Zerodha going bankrupt (.0000000000001% probability), what is policy of Zerodha towards its clients. I wonder if Zerodha has given this aspect a thought and discussed internally some plans to handle post bankrupt situation?

I hope to get some insight into this from you. I know other brokers will not be very forthcoming on this. But I trust Zerodha to be open and help all the investors.
Your reply would also help those trading with other brokers to become more aware of the risks and their responsibilities. So I request you to give this topic a well deserved and complete reply.

I have searched on net but didn't find anything good on this topic.

thanks.

Firstly broker account and client account in India is kept completely separate. If you read the balance sheet of every listed broker, you will see that proprietary trading forms a decent portion of revenue...Prop trading through a company doesn't really happen in India.

Bankruptcy if you look around in brokerage business mainly happens because of high leverage products offered to clients, rather than proprietary trading. If you know the way we do our business, I guess you know that we don't compromise on that bit, we have said no to so much business because we didn't want to compromise on risk management.

Even if Zerodha as a business goes bankrupt( 0.000000001 % ) , the client funds will be kept separate and will not have any interconnection with each other. Also our proprietary trading is very minimal and just mispricing strategies, reverse arbitrage, put call parity and that's it. Our prop turnover is less than 0.2% of our entire turnover and is just a small fraction of what most of our competitors would probably be doing.

Finally, we have had an audit by SEBI, NSE, BSE, MCX in the last 1 year and they haven't found any noncompliance to rules, especially the important ones like pool account, client funds credited/debited late and etc..

Your query is valid, but you can be reassured that there hasn't been one instance in the last 3 years where we have compromised on risk management..

 

[VJAY]

Firstly broker account and client account in India is kept completely separate. If you read the balance sheet of every listed broker, you will see that proprietary trading forms a decent portion of revenue...Prop trading through a company doesn't really happen in India.

Bankruptcy if you look around in brokerage business mainly happens because of high leverage products offered to clients, rather than proprietary trading. If you know the way we do our business, I guess you know that we don't compromise on that bit, we have said no to so much business because we didn't want to compromise on risk management.

Even if Zerodha as a business goes bankrupt( 0.000000001 % ) , the client funds will be kept separate and will not have any interconnection with each other. Also our proprietary trading is very minimal and just mispricing strategies, reverse arbitrage, put call parity and that's it. Our prop turnover is less than 0.2% of our entire turnover and is just a small fraction of what most of our competitors would probably be doing.

Finally, we have had an audit by SEBI, NSE, BSE, MCX in the last 1 year and they haven't found any noncompliance to rules, especially the important ones like pool account, client funds credited/debited late and etc..

Your query is valid, but you can be reassured that there hasn't been one instance in the last 3 years where we have compromised on risk management..[/QUOTE]

:clapping::clapping::clapping::thumb:

 

[gandhara]

Dear zerodha,
I am using NOW version .How to shift to zerodha trader? What is the procedure?

 

[amsin21]

Re: Position carry forward - doubt

Yes you are correct.

Settlement in f&o is T+1

Thanks Zerodha....doubt clarified...:thanx:

 

[poortrader]

@stock72 - We've checked with our sources and there's no maximum age for opening a trading account.

@poortrader - We've answered your query in post #132

I know how to place the alerts, and it also sends an email when the alert is triggered within the same day (when the alert was placed). However if the price is triggered next day the email or pop up does not come until and unless you load the alert.csv file. Suppose I am unable to open the terminal the next day, and my trigger price is hit. I will not get the email alert. So please speak to your technical team that once the alert is placed it should automatically send the alert to email whenever it is triggered, be it on day of placing the alert or after 10 days.

Please look into this part