Zerodha - Number One Discount Broker in India

[doshiv]

We can't place orders in Pre-open session.

I am daily placing orders in Pre-open session.

 

[VJAY]

Today I tryed to check my P/L reports first time in zerodha back office......ITS TOO CRAP SOFTWARE/WEB PAGE WHICH I SEEN IN MY TRADING LIFE...I used many brokers backoffice page ...but this one is most crap one
I allready spent more than 1 hour now ...in between changing financial year more than 10 times its automaticly sign off giving error as you are need to login again
Ohh ......

 

[doshiv]

From 27 Sept. , Reisixten is shifted to BE or T group for trading.
Please send me the circular from NSE or BSE regarding it .

 

[RAVI1952]

Hey ravi

Instead of making sweeping statements and bragging about how good it was in US for you, why don't you tell us specifically what is your problem with Zerodha.

As for now it seems from their response that they were quite right in squaring off your position.

We all certainly want our broker to have good risk management in place . . . its essential to protect us . . .

Cheers

Happy

Will you please let me know the response of Zerodha? I have not been able to see their response. They have also not sent any satisfactory reply to me in response to my e-mails.If you can get, I shall appreciate.
I am surprised with your statement"bragging" "USA". Is there a problem in accepting that system work there and not working here? If you do not understand,'Why it works there and not here, please do your own research rather than making such statements,unless you are a broker or representing some broker.

 

[timepass]

I wonder if this is the reason for the US Government shutdown

 

[shekharinvest]

Will you please let me know the response of Zerodha? I have not been able to see their response. They have also not sent any satisfactory reply to me in response to my e-mails.If you can get, I shall appreciate.
I am surprised with your statement"bragging" "USA". Is there a problem in accepting that system work there and not working here? If you do not understand,'Why it works there and not here, please do your own research rather than making such statements,unless you are a broker or representing some broker.

Ravi

Here is the Zerodha response

Ravi,
I guess we had tried to reason out on why we squared off your position at 2.50 and not 3.20pm. You had written deep in the money call option and you were using the premium received to write even more.

Since the market was going up fast, our RMS team had to square off a small position and the rest of it was squared off by you by 3.20pm I guess. The reason I guess you were pissed was because our RMS policy document didn't mention that we can square your position anytime during the day.

The email which was sent it to him was explaining that the RMS policy now includes the statement that positions can be squared off any time during the day if there is no sufficient margin and we won't wait till 3.20pm for that .

I guess we were being courteous and hence the following email was sent,



"Firstly let me apologize for the inconvenience caused to you due the the lack of clarity in our margin policies,

You will find our margin policy document in the link provided here.

Two clarifications,
a) We will be unable to give premium benefit received from writing options
b) Positions can be squared off at any time whilst there is insufficient margin in the account

In lieu of the discomfort caused to you by the lack of clarity in our RMS document we would like to extend the next 100 of your trades at Zerodha brokerage free.

This definitely does not make up for the issues that have occurred already but henceforth we hope our revised policy document will give you elevated clarity on our margin policies.

I would also like to humbly request you to refrain or reverse the comments on blogs and Social media.

We are a company started by traders at prices that facilitate other traders to function, we do 0 marketing and the only way we hope to grow is through word of mouth ......"

@everyone,
Don't want to get into specifics of how much position, but by writing deep in the money options there was a huge position taken on short calls and nifty was bouncing more than 4% and hence we had cut just a small portion..Ravi himself cut the rest in 10 mins after we did.

Phew!!!I don't know how many brokers would have taken this much effort for squaring a small portion of the position the client held because of lack of adequate margin.

@Ravi, Let us know if you want to talk about it, writing deep in the money options with a higher leverage, pocketing the premium and writing more, is something that an RMS team of any brokerage business can't let happen, you will be taking unlimited risk on behalf of the brokerage.
I know you have traded across the world, but the way option writing margins are blocked in India by exchanges differs from how it is blocked in the US.

We are good with you using the option writing premium, what is the issue is to use the loophole that exists in the system.

Assuming you write a 5000 call at 800 using MIS. YOu will receive 40,000 as premium but only around 20,000 is blocked. You will use this 40000 to write more options. This way you can run an unlimited position with just 20,000 in your account.. Usually when such things are done, we know that the trader is looking at taking a ride by putting the broker at risk. Most of us at Zerodha are traders and we can spot these very easily..

 

[Delaroche]

hello,
client access--nse fno-- view open positions (not updated.when does this get updated)
-- nse fno-- the profit and loss report shows some irrelevant figures on the day of the trade and this gets changed to logical values the next day. very strange.

account summary-- open positions(not updated.do check the net values)

Guys, have a look at this . it isn't amusing to keep cross-verifying every day. regards

 

[RAVI1952]

Ravi

Here is the Zerodha response

My response to this communication is given below:
"Sorry to say that your response does not answer any of my queries.
I have noted that you will not be able to give premium benefit for writing options. If this is your policy, then
(1) Why is it is not included in your policy document (in the link provided)?
(2) Why Margin position given in the back office and surveillance is on a different basis?
(3) How many types of margin positions you want to to have for one account and at the same time.
If you think that Zerodha is right,give me specific and to the point raised by me with details and data rather than general reply.
(4) Your policy document says that positions will be squared at 3.10 pm. If so, why my positions were squared at 2.45 pm ? What was the shortfall in margin at that time as per surveillance-- clients margin.
I stand by with my statement written on various social media sites,unless you prove that my statement is wrong. I do not want other innocent clients to be victim of your adhoc practices.

I am rejecting your offer of 100 free trade. I do not want even one free trade from Zerodha where foundation is based on adhocism with home made rules.
Regards,

Ravinder"

My response was sent on 27th Sept.,2013.

Zerodha has not clarified on any of the issues that I had raised. Their response is misleading. I have been seeing my margin position on RMS-Client Margin Position and there was no need to squaring off the position.Zerodha is simply giving reply without furnishing actual details.

 

[Delaroche]

hello,
Have not received the margin report today as well.???? the figures shown in the margin report accessed through your backoffice bears updation/change. kindly have a look. regards.

 

[RAVI1952]

Ravi,

As a broker we have to ensure that we are safe, in the interest of us and our clients, hoping that you will appreciate that.

If tomorrow, a person has bought 4 lots of nifty for 1lk and suddenly nifty drops causing a huge loss, do we hold the position or square off? Every RMS team of broker will do, they won't wait till 3.20pm and take the risk of the loss getting bigger and account going into debit.

Don't want to get into details on a public forum, but if there is a loss and risk of account going into debit, especially on extraordinary days like the one recently when NIfty bounced over 4%, we as brokers have to safeguard ourselves, I guess everyone has to be more worried if we don't do that efficiently..

@Ravi, if you want to talk about this let me know, I can call you at your convenience.

Cheers,

Dear Mr. Zerodha,
At the moment we are discussing a specific case where you have squared up the positions,when it was not called up as per the details available at RMS-Client Margin. I simply want justification for this so that we do not deviate from the main issue. As regards, your query, I will answer only after receiving specific response from you.
Systems have been made to to consider most likely and typical sistuations and not for hypothetical situations.