Zerodha Part 2

[kumudhan]

Hi,
I have entered the 60 day challenge and invested "x"amount and i would later infuse some more funds "y"amount in my trading account.I have made some profit on the x amount...so my question is can I add some more funds in my trading account when the challenge is open and how do you calculate the performance or the returns on capital?
Thanks

can I add some more funds in my trading account when the challenge is open?

yes you can. and say this amount is "z"

how do you calculate the performance or the returns on capital?

say the final amount after the challenge closing day is "a". your performance is equal to a-x-y-z.

 

[ksp191]

Dear zerodha,
We appreciate the fact that you are one of the pioneer in the online discount broking.Please introduce a plan for high frequency traders.

You are Quite expensive for high frequency traders like me.Even winners of the 60 day challenge are high frequency traders.Even If we take 6 trades per day conservatively, brokerage is becoming rs270(after service tax).Monthly brokerage will be rs 7000-10,000.Yearly we may end up with paying above rs ONE LAKH.

It means that Even winners are not getting brokerage free trading.They may end up with paying rs1000 as service tax on brokerage per month.It is becoming DHA to your high frequency trades and It is against your motive of providing ZERO DHA TO YOUR CLIENTS..In this way you are depriving your clients competitive advantage when compared with VPS, SMART TRADE,SAS ONLINE,RKSV.

Please introduce MAX CAP HYBRID PLAN or daily maximum cap plan like APOLLOMONEY"s rs 98 per day plan.Please take innovation to another level to get the competative advantage to you and your clients.As you achieved economic size of operation, you can share that benefit with the clients. In these days migrating to another broker is one application and one week time away only.Please take it as sportive

 

[sumosanammain]

..................................................................

 

[rythm.arora]

Zerodha,

Is there a way to get total buy/ sell and profit/ loss statement from backoffice for AY 2012-2013 for tax purpose? Just the way we are getting it for 60 Day challenge. Such a data should cut a lot of work. Otherwise what is the method to get the total turnover and profit/loss. Dont tell me that we have to pull out this data from our daily contract note

 

[vikrit]

Zerodha,

Is there a way to get total buy/ sell and profit/ loss statement from backoffice for AY 2012-2013 for tax purpose? Just the way we are getting it for 60 Day challenge. Such a data should cut a lot of work. Otherwise what is the method to get the total turnover and profit/loss. Dont tell me that we have to pull out this data from our daily contract note

there is no need to look for daily contract notes.

for taxation purpose we use only settlement values (profit/loss) for each script/contract.

pull out P&L report from back office, in that

turnover = Net Receivable + Net Payable

Profit/Loss = Net Receivable - Net Payable - (Brok.+TC+STT+SC+ST)

(here we take absolute values)

 

[TraderRavi]

there is no need to look for daily contract notes.

for taxation purpose we use only settlement values (profit/loss) for each script/contract.

pull out P&L report from back office, in that

turnover = Net Receivable + Net Payable

Profit/Loss = Net Receivable - Net Payable - (Brok.+TC+STT+SC+ST)

(here we take absolute values)

can you explain the red line with example........

 

[TraderRavi]

hi zerodha, in P&L report from back office, for july month,

turnover = Net Receivable + Net Payable = 17980

but I calculated profit and loss of each of the 125 trades , and thus turnover = gross profit + loss = 46031.

now which figure is correct for taxation..............

 

[Zerodha]

Zerodha,

How the ORDERS placed from PRICE LADDER are treated, NRML or MIS?

I hope the answer is NORMAL.In that case why don't you have buttons like
BUY-NORMAL and BUY-MIS in place of BUY alone.The same case for SELL also.

Let me find this out tomorrow morning and answer..

 

[Zerodha]

Hi,
I have entered the 60 day challenge and invested "x"amount and i would later infuse some more funds "y"amount in my trading account.I have made some profit on the x amount...so my question is can I add some more funds in my trading account when the challenge is open and how do you calculate the performance or the returns on capital?
Thanks

maximus,

We don't consider money transferred in or out,

Simpler way to, which we follow is just take all the trades done in this period and add up the profit and losses of each trade..

 

[Zerodha]

Dear zerodha,
We appreciate the fact that you are one of the pioneer in the online discount broking.Please introduce a plan for high frequency traders.

You are Quite expensive for high frequency traders like me.Even winners of the 60 day challenge are high frequency traders.Even If we take 6 trades per day conservatively, brokerage is becoming rs270(after service tax).Monthly brokerage will be rs 7000-10,000.Yearly we may end up with paying above rs ONE LAKH.

It means that Even winners are not getting brokerage free trading.They may end up with paying rs1000 as service tax on brokerage per month.It is becoming DHA to your high frequency trades and It is against your motive of providing ZERO DHA TO YOUR CLIENTS..In this way you are depriving your clients competitive advantage when compared with VPS, SMART TRADE,SAS ONLINE,RKSV.

Please introduce MAX CAP HYBRID PLAN or daily maximum cap plan like APOLLOMONEY"s rs 98 per day plan.Please take innovation to another level to get the competative advantage to you and your clients.As you achieved economic size of operation, you can share that benefit with the clients. In these days migrating to another broker is one application and one week time away only.Please take it as sportive

ksp,

According to us fixed brokerage per month/day is a flawed business logic and also not following exchange compliance which states that we cannot charge before rendering service.

I think it is important to know that brokerages are also a business and the only way they will be able to keep running the business is if they are profitable. We are in this for long term and can't imagine how all the businesses that you just mentioned can make profits over a longer period of time. Typically when businesses don't make profits over a longer period of time, the quality drops, the management interest drops and in the end the risk comes backs to the end user.

We know that the next war in the brokerage business will be technology, where everyone will be queuing up to better each other. No one has initiated this process, but once it starts it will be like an Arm's race for sure among brokers, race to provide the best technology, which will again be good for retail customers. We at Zerodha are ready for this and may end up being the first ones to initiate it, without affecting the present pricing.

All said and done, this business for now is being done without the long term vision by a few. Upto 10% of revenue of a brokerage goes in bad debts, a big move in the market can cause bad debts to baloon, donno if all the new boys have factored all of this in their pricing, but as they say time will tell.