Zerodha Part 2

[Zerodha]

Ditto with losses ?? If he books his position in loss, does his capital get reduced immediately or not ?? Can he continue to trade with it (pre-loss amount) till EOD ??

, unfortunately doesn't work like that...

Losses go immediately, but profits come only next day..

 

[vikrit]

Yep that gets added next day morning, you can take that 5k and do whatever, withdraw it and go for a party...

i know that was stupid question to ask, but wanted to confirm because every time read this thread, come to know some new rules about your RMS which make me reluctant to use zerodha for big positions.

anyways, tell me as you don't add notional profit to limit, is it same with intra-day loss. like if my limit is 30k, and notional loss is 5k, so whether i will be able to use 25k or 30k?

 

[Zerodha]

i know that was stupid question to ask, but wanted to confirm because every time read this thread, come to know some new rules about your RMS which make me reluctant to use zerodha for big positions.

anyways, tell me as you don't add notional profit to limit, is it same with intra-day loss. like if my limit is 30k, and notional loss is 5k, so whether i will be able to use 25k or 30k?

As I said in the previous post, losses go immediately but profits get added after.. That is how exchange treats us as a broker and we follow the same with our clients, basically a standard practice in the industry...

You can use only 25k...

 

[Smart_trade]

i know that was stupid question to ask, but wanted to confirm because every time read this thread, come to know some new rules about your RMS which make me reluctant to use zerodha for big positions.

anyways, tell me as you don't add notional profit to limit, is it same with intra-day loss. like if my limit is 30k, and notional loss is 5k, so whether i will be able to use 25k or 30k?

M to M losses ( or a negative difference )are calculated and deducted from our capital in real time. So if there is Rs 5 K notional loss, your capital will be reduced by that amount in realtime and only 25 K is available for the next trade( and not 30 K.)

Let us see what Zerodha says.

Smart_trade

 

[vikrit]

As I said in the previous post, losses go immediately but profits get added after.. That is how exchange treats us as a broker and we follow the same with our clients, basically a standard practice in the industry...

You can use only 25k...

ok! don't know about standard practice, but having a/c with 2 brokers other than zerodha, both broker's system add notional profit in limit, live. although its no big deal for my trading purpose, as normally i hold positions.

 

[TraderRavi]

Re: Erroneous trade in my a/c with ZT

Leverage is a double edged sword especially on currency where you get almost 100 times, I am sure Sura on days when has gone right has made more than 30% in a day.

People run difft strategies, we have clients whose stoploss is the capital in the trading account, but they run extreme leverage positions.

One of our winning clients from last year challenge runs something similar, when we spoke he explained us his strategy.

50 lk trading capital, but keeps only 5lk in the trading account which is also his SL. On this 5lk, he takes extreme leverage positions like OTM options knowing that even if he blows out this 5lk, he can take 9 similar chance sand the law of averages would just catch up.

Profits are continuously taken out to keep the trading capital at only 50L. No TA, no QA, FA or whatever, just betting with a brilliant money management strategy... Was up over 200% last year..

Food for thought, with markets tanking and people being in a pessimistic mode...

may be traderji member, he has posted contract notes once(if m guessing right), with 100-150 lots per trade............

 

[TraderRavi]

We definitely want to continue this, but we have observed some issues over the last few weeks which may hamper the challenge to be run in the present format... Ideas from all of you on overcoming these issues will be very nice...

A lot of clients, after making some profits, have completely stopped trading in those particular accounts.. They are opening accounts in the name of their family and trading on those .. Our systems have detected a lot of these accounts because of similar addresses... This is putting up unnecessary stress on our account opening team and a lot of other processes in the system.. .

We have our competitors putting up all wrong kind of news because of this challenge.. So the format has to change...

How this can be changed without letting people misuse the system is what we would love to hear from all of you...

Cheers...

@ cinder, a person who has traded only once in 60 trading days, can't really be looking to be a professional trader, right?? ..

But yes, the idea is to push our clients to stay profitable, which I guess people forget is why we are in the business and not just to trade..

trading once with you (or until in the green)...and then switch to the other broker for the remainder of the 60 days

Anyway, it's all good

same old challenge, same problems............

 

[Trader5]

Re: Z5 on window phone

5,

Works on IPHONE, am using it on mine.. it is on html5, so won't need java..

Let me double check any prerequisite of safari browser..

Checked again in my iphone 4, still no hope.

After log in I clicked and new browser opens but no streaming.

Anything to update setting in phone?

 

[futures]

Re: Erroneous trade in my a/c with ZT

Leverage is a double edged sword especially on currency where you get almost 100 times, I am sure Sura on days when has gone right has made more than 30% in a day.

People run difft strategies, we have clients whose stoploss is the capital in the trading account, but they run extreme leverage positions.

One of our winning clients from last year challenge runs something similar, when we spoke he explained us his strategy.

50 lk trading capital, but keeps only 5lk in the trading account which is also his SL. On this 5lk, he takes extreme leverage positions like OTM options knowing that even if he blows out this 5lk, he can take 9 similar chance sand the law of averages would just catch up.

Profits are continuously taken out to keep the trading capital at only 50L. No TA, no QA, FA or whatever, just betting with a brilliant money management strategy... Was up over 200% last year..

Food for thought, with markets tanking and people being in a pessimistic mode...

Law of averages doesn't catch up that easily on a smaller sample(in this case, 10)...what he is doing is like a tossing a coin with some Money Mgmt...you can easily get 15 heads or 15 tails in a row and hence, the account would be blown before he knows it.. but over 1000's of sample, the probability of getting a head or tail would be approx 50%...so, i am wondering what 'Law of averages' we are referring here with such a small sample size?

funny thing is that I do have personal experience on blowing my account and the fallacy on my thought was exactly the same 'law of averages' with almost negligible quantity sample..i figured it out in the hard way..

there are only two possible outcomes on your client's version of what he's doing..either he is not revealing his 'edge' in the market to you or he's just waiting to get blown up by his own money mgmt theory..

I hope your post is not giving wrong ideas to people who are just starting to tread in the treacherous waters of trading

 

[prabit]

Re: Erroneous trade in my a/c with ZT

Law of averages doesn't catch up that easily on a smaller sample(in this case, 10)...what he is doing is like a tossing a coin with some Money Mgmt...you can easily get 15 heads or 15 tails in a row and hence, the account would be blown before he knows it.. but over 1000's of sample, the probability of getting a head or tail would be approx 50%...so, i am wondering what 'Law of averages' we are referring here with such a small sample size?

funny thing is that I do have personal experience on blowing my account and the fallacy on my thought was exactly the same 'law of averages' with almost negligible quantity sample..i figured it out in the hard way..

there are only two possible outcomes on your client's version of what he's doing..either he is not revealing his 'edge' in the market to you or he's just waiting to get blown up by his own money mgmt theory..

I hope your post is not giving wrong ideas to people who are just starting to tread in the treacherous waters of trading

It is said that 95% traders lose money and I am one of them. My advise to them, never trade on leverage. Instead build and increase your capital bit by bit slowly, steadily and consistently and that is money management. Highly leveraged position is money mismanagement. Well it is just my opinion and opinion differs.