Zerodha Part 2

[Subhadip]

From the limited knowledge I have...I would like to know in intra-day equity segments...what needs to be cleared..that the charges are more than NSE prescribed structure...If its buying and selling of share I can understand this....similarly being a novice I would again like to understand what role does a DP like IL&FS have in futures and options? Because I do not know...what needs to be cleared by a DP in Derivatives segment as well as Equity intra-day? Even I agree that the charges may be unwarranted...except for the delivery traades...you have put up a right question....one standard reply of Zerodha for this is that they are not a clearing member ...and so these extra charges...but still from my limited knowledge I am unable to understand what needs to be cleared in an intra day equity as well as derivatives....Please enlighten us...

The circular being quoted is correct....and since Zerodha is not a clearing member itself it has to pay charges other than what has been put up by NSE Circular and they are perfectly within their rights to do so...and this extra charge is charged by every broker which is not a clearing member itself...Hope it clarifies to some extent:thumb:

still not clear...

 

[ganapathi]

Margin Plus Orders:

MARGIN PLUS ORDERS: This product is meant for short-term traders who want to make the best use of any volatility. "Using this product one can place a 'book profit' and 'stop loss order' simultaneously. When one of the orders is executed, the reverse is cancelled,". For example, you buy a stock at Rs 100. Now you want to book profit at Rs 102, and keep a stop loss of Rs 98. In the manual world, if the stock price hits Rs 102, you would have to go and cancel the stop loss order at Rs 98.


Does Zerodha allow to place such orders and How?

Whom to send mail to enable SL-M order?

Regards

 

[Zerodha]

From the above link : About exiting a SL order from a cover order :

At what price will it exit ? Market price or the SL price defined ? Suppose I place a cover order to buy 1 lot at market price and define a SL of 5885. Suppose the purchase is executed at 5900 and later when the CMP is 5910, I want to exit the trade. If I exit the SL order, it will exit at what price ?

It will exit at market price..

 

[Zerodha]

Margin Plus Orders:

MARGIN PLUS ORDERS: This product is meant for short-term traders who want to make the best use of any volatility. "Using this product one can place a 'book profit' and 'stop loss order' simultaneously. When one of the orders is executed, the reverse is cancelled,". For example, you buy a stock at Rs 100. Now you want to book profit at Rs 102, and keep a stop loss of Rs 98. In the manual world, if the stock price hits Rs 102, you would have to go and cancel the stop loss order at Rs 98.


Does Zerodha allow to place such orders and How?

Whom to send mail to enable SL-M order?

Regards

They are called bracket orders and I guess sharekhan is the only one offering presently only for equity..

Can you tell which broker is this??

 

[ganapathi]

They are called bracket orders and I guess sharekhan is the only one offering presently only for equity..

Can you tell which broker is this??

ICICIDirect.com

 

[calic]

never tried that .

What do you get there ? SL => SL -L ?

Please go through this link http://www.zerodha.com/connect/blog/2012/10/stop-loss-orders-limit-market

 

[Trader J]

NSE Circular No: NSE/F&A/13028 and Circular No: NSE/F&A/13029 makes it clear that in futures the charges are Rs.190/crore and in Equity Rs. 325/crore.......Zerodha charges Rs. 500/crore in futures as well as equity...Since Zerodha is not a clearing member it has to pay extra charges to IL&FS ...and so they charge this much extra...at the same time no doubt this is on the higher side...and Zerodha would be doing great favours by reducing these charges because I do not think they would be paying more than Rs. 50-60/crore as clearing charges...to IL&FS...so net net in every one crore of transaction in futures Zerodha is charging at the minimum Rs. 250 more....equivalent of placing at least 12 orders at Rs. 20 per order...I am not aware whether for a broker it is correct to make Transaction charges as part of revenue stream....only Zerodha can tell how much they are paying to IL&FS as clearing charges....and what I feel that in the Indian context the only revenue stream is supposed to be brokerage...and Zerodha has decided to go with Rs. 20/order model....so its their choice...still I do not think that transaction charges can be a revenue stream for any broker....it can be definitely a revenue stream for a clearing member...but how appropriate is it for Zerodha or any other entity charging more than what they pay to a clearing member in addition to NSE charges only Zerodha can tell...I do think that additional charges in the name of Clearing charges other than what is paid to the clearing Member....may be Technically correct but ethically wrong....and It applies to all the entities including Zerodha....Legalities are not clear in this...Even SEBI's directive or NSE's directive regarding the same I have been unable to find....still will make an attempt to find out restrictions placed by any regulatory body regarding the same and will update if I find them...:thumb::thumb:

Clearing charges differ from broker to broker....for us it is equal to brokerage cost...so before choosing check Transaction charges also. RKSV having very low clearing charges (For Future only Rs 40/ Crore 190+40=230).

If you are trading in NIFTY FUTURE, Zerodha will cost you Rs 300 /Crore , it is equal to Rs 19.89 per lot for both lag(50x5900) but if you trade with RKSV it will cost you Rs 40/Crore, it is equal to Rs 2.65 per lot.

Both have clearing with ILFS.

 

[rockey784]

Is my money safe with this broker.... What will happen if they become bankrupt..

 

[Harsha Kumar]

They are called bracket orders and I guess sharekhan is the only one offering presently only for equity..

Can you tell which broker is this??

zerodha,
Can you provide this facility ?

 

[TraderRavi]

is my money safe with this broker.... What will happen if they become bankrupt..

brokers never go bankrupt(only 1% chance), its traders who go bankrupt(99% chance).......