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Zerodha

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Bump; guess this got lost in yesterday's clamour.

Today's AMO orders placed at 08:53, got confirmed with more delay at 09:17:30; even subsequent to an order placed after market open.

I should have a fix for this in the next couple of days... I have already put it forward to the tech team...
 
I should have a fix for this in the next couple of days... I have already put it forward to the tech team...
There is a queue for the Off market orders to be released to NSE. The orders entered at market open are given priority for release to the NSE. This is prevalent in Indiabulls also.

It takes upto 5 mins in Indiabulls for the orders to go to the exchange, and we cannot even modify or cancel the pending order till it is confirmed by he exchange.
 

TheDreamer

Well-Known Member
... ... ...

@Zerodha.. We have developed an internal software which does client profiling... This is very popular in the US, but hardly any use it in India. Client profiling basically points us to our most risky clients.. Risky clients are those who keep betting all the money in their account on every trade.For these accounts, the margins we block goes up.. We put them in a different risk category...

Let's have a discussion on how you identify risk of a trader trading with you.

Take an example of an account size of 5.50 lakh.
Both Nifty and Nifty futures are at 5200.

Situation1: Short 10 lots of Nifty 5200 CE & PE each at the same time when NF is at 5200 along with long in Nifty futures @ 5200 that too 10 lots. So total 30 lots (Please don't avoid the question by saying these positions are not allowed by your risk mgmt. system for O/N positions. It's a real time example of an account in Zerodha).

Situation2: Long in 20 lots of Nifty futures @ 5200.

My questions are:

1) Which position is more risky?
2) In the 1st situation, do you consider it as betting all the money in the account on single trade?
3) How would you profile the risk of both the situation?
4) Does time to expiry have any bearing on these situations?
5) What are the other factors that makes a difference between the risk profile of both the situations?

This much for now. Hope your reply would be propaah(!)... :)
 
Hello Zerodha,

I hear a lot about collecting the premium by selling options. I thought a large amount of margin was blocked when one sold options. So what is this about collecting premium ? Suppose I sell one lot of Banknifty May 10000 CE at Rs. 170, how much money (margin) will be blocked and how much will be credited to my account ?

Open the series at 5200. :cool:
Sell both calls and puts and collect premium. :p
Close the series at 5200. :D
No payout on both sides. :rofl:
 

yusi

Well-Known Member
There is a queue for the Off market orders to be released to NSE. The orders entered at market open are given priority for release to the NSE. This is prevalent in Indiabulls also.

It takes upto 5 mins in Indiabulls for the orders to go to the exchange, and we cannot even modify or cancel the pending order till it is confirmed by he exchange.
Never experienced it with RKG's Diet Odin. Order confirmation is typically within 5 secs of market open.
 

Zerodha

Well-Known Member
Let's have a discussion on how you identify risk of a trader trading with you.

Take an example of an account size of 5.50 lakh.
Both Nifty and Nifty futures are at 5200.

Situation1: Short 10 lots of Nifty 5200 CE & PE each at the same time when NF is at 5200 along with long in Nifty futures @ 5200 that too 10 lots. So total 30 lots (Please don't avoid the question by saying these positions are not allowed by your risk mgmt. system for O/N positions. It's a real time example of an account in Zerodha).

Situation2: Long in 20 lots of Nifty futures @ 5200.

My questions are:

1) Which position is more risky?
2) In the 1st situation, do you consider it as betting all the money in the account on single trade?
3) How would you profile the risk of both the situation?
4) Does time to expiry have any bearing on these situations?
5) What are the other factors that makes a difference between the risk profile of both the situations?

This much for now. Hope your reply would be propaah(!)... :)
Situation 1 is a safe trader for us. We would not bother this guy for any margins..Thought exchange doesn't understand option strategies, our internal software understands it...

Situation 2 again is not really a high risk category for us, if there is 5.5lks in the account.

If with 5.5lks you take positons for more than 32 lots is when you start giving us a red flag..

Yes time to expiry also has a bearing but that apart it is basically trading patterns that we are trying to pick up. If you have 5.5lks and want to trade with more than 30 lots every trade, you start giving out red flags... If you are an option writer and want to use the premium pocketed to write more, you again flag..
 
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Situation 1 is a safe trader for us. We would not bother this guy for any margins..Thought exchange doesn't understand option strategies, our internal software understands it...

Situation 2 again is not really a high risk category for us, if there is 5.5lks in the account.

If with 5.5lks you take positons for more than 22 lots is when you start giving us a red flag..

Yes time to expiry also has a bearing but that apart it is basically trading patterns that we are trying to pick up. If you have 5.5lks and want to trade with more than 30 lots every trade, you start giving out red flags... If you are an option writer and want to use the premium pocketed to write more, you again flag..
22 lots with 5 lakhs in the account... why would I red flag? Even with SL-M orders for the position? This is for intraday trading.


And with a red flag, what action do you take?

This means you want full margin for nifty futures, and the talk about giving 2 times margin for Nifty futures is not true. Please confirm
I was under the impression that I need 10,000 in the account for each lot of Nifty for intraday trading.
What is this new thing about red flags? I regularly trade with Indiabulls with 2 times margin for Nifty, and they have never red, green, blue or purple flagged me :)
 

Zerodha

Well-Known Member
22 lots with 5 lakhs in the account... why would I red flag? Even with SL-M orders for the position? This is for intraday trading.


And with a red flag, what action do you take?

This means you want full margin for nifty futures, and the talk about giving 2 times margin for Nifty futures is not true. Please confirm
I was under the impression that I need 10,000 in the account for each lot of Nifty for intraday trading.
What is this new thing about red flags? I regularly trade with Indiabulls with 2 times margin for Nifty, and they have never red, green, blue or purple flagged me :)
:)) No flags.. Was explaining our client profiling system... This basically is our internal mechanism to find out our risky clients.... That was a typo, i wanted to write 32lots( 32 lots x span = 5.5lks)... You can still trade with 10k in your account and buy 55lots for 5.5lks... If every trade you take, you keep buying/selling 55lots, then for us you are a risky client.. We do nothing extra if you are a risky client, just that these accounts are under watch by our computers for risk management..
 
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