Zerodha....

[Zerodha]

Zerodha,

I'm not comfortable using margin and leverage in equity day trading ( cash market). Can you please clarify the doubt below ?

I wish to BUY ABB and ABAN equity using margin and leverage.

current market price of ABB = 710 Rs
current market price of ABAN = 376.10 Rs
(source: moneycontrol.com)

In your website margin for ABB and ABAN equity is..

My question :
If I have 2500 Rs in Trading Account , How many ABB and ABAN I can BUY ?

Please show me the calculation part. I find it hard because I plan to buy multiple shares using margin and leverage.

mega, you seem to be having confusion on the margin bit.. Here is how it is:

Margin given by a broker is sometimes explained as a multiple or sometimes as a %. Our excel shows you both...

So for eg: if it says 20%, to buy Rs 100 of a stock you need to bring in Rs 20.. the same thing which says 20% could also be called 5 times leverage.. What this means is if you have Rs 20, you can buy 5 times of it which is Rs 100... What you need to understand is both mean the same...

In case of ABB you see, 10.77% as margin or 9 times...What it means is, if you have Rs 2500, you can buy 9 x 2500 = 22500 worth of ABB, you could also say it in other words which is to buy Rs 22500 worth of ABB you need 10.77% which is around Rs 2500... It is like saying the same thing but in different words...

If you are finding it confusing, look only a the leverage provided column and disregard the other.. Whatever money you have, you can buy leverage * money ... Hopefully this clarifies...

 

[sumosanammain]

Who are we to judge people for their intelligence (/stupidity level ?? One fellow may find a 100rs shirt adequate for covering his skin, another one may go for a rs. 1000 shirt.. and both of them may consider it a necessity. whatever, individual choice.

For a trader, it may be worth paying 10 times more for a broker who offers a good charting service.

Yes you are right.. who am I to judge people.
So, moral of the story, is that SMART people look for better alternatives.
Stupid people dont.

So, you are saying that a trader would pay 10 times of 20 rs, means 200 rs for buy and 200 rs for sell, maybe many many times a day, just because he is soooo stupid that he cannot google nse official data providers?
Then he deserves to pay it, and the broker deserves to seperate the fool from his money

PS: Sachin, dont mind my posts, just friendly banter... and do PM Timepass for references of people willing to pay 10 times more, you could take it from him, and provide him with GFDL data

 

[Zerodha]

Dear Zerodha Team,

Contradictory statements and creating illusions for the sake of marketing can't help any organizations, in fact it can be suicidal.

It is good to feel that an organization/businessman is consumer's side, but it is fact bottom line matters more than anything. And for short term anybody can work at cost but in long run every businessman wants GOOD profit, that is the main reason he is taking so much risk and pain to start & run the business at first place.

It is understandable if you are not happy with results in respect of profits, except at start you mentioned you just care about operational cost, so why now you are upset for profits?

At start you did not bother if 80% will be in profit, now 22% is big numbers. in fact you wanted everybody will be able to trade brokerage free.

Again and again you are talking about multiple a/cs, but IMO they didn't break any rules you made. It is difficult to digest once you claimed 80% winners will not be a problem and now you are so upset b/c of these 10% traders. Tell me one thing, did you checked their combined balance? combined balance of all a/cs for same address is not even 1rs positive??

As anybody who able to add 1rs, will win the challenge; so basically you were expecting/hoping that more than 85% people will not be able to add even 1 Rs. to their balance in 60 days????
(now getting why you are increasing no. of days.

BUT How come you were expecting 10-12% max winning result, when your average monthly profitable traders were 20-25% in back-testing??




Just a thought came, till when you have these type of challenges with 'these type' expectations, you will not take risk to provide tools/strategies/webinars/videos to make more traders profitable, as it is a conflict of interest. Now have doubt about NEST PLUS advanced tools/tactics you talked about, b/c either they are not good or you didn't back-test them.

.

That is a lot of effort vikrit..

Let me explain, do you know the best month of shopper stop in the year??

It is the month when they run the annual sale..

What I am trying to say is, yes we were cool with more people making money, but we'd expected a lot more business to come through because of this, which didn't happen.. this could be blamed on markets coming down or the fact that we didn't advertise it as much as we should have.. The lesson learnt was, to run a challenge like this, we need to do a lot more advertisement to rope in new business to make up for any revenue loss...

Guys, we already work in a very thin margin environment, it is important that if we forego any revenue loss, we add new business to make it up...

As I said people, a lot of you have benefitted from this challenge...

Why we didn't advertise?? We all believe that today we are not a complete product... Till we have all exchanges on a single platform, give facilities like stock as collateral etc we wouldn't want to go out and start talking about us.. If you want to take part in MR universe, you better be in the best shape of your life, you can't go out to world with a paunch around you...

If you would have realized, other than the banner on traderji, we haven't advertised about Zerodha anywhere yet... So our focus as I said is the make Zerodha a complete broker first... There are some amazing tools available which we will be sharing with you...So don't worry about any conflicts of interest..

Be rest assured that the next challenge we have would be a lot different and we definitely would make some noise about it... What we tried with this challenge was probably the first by any NSE member till date, it benefitted a lot of you, it didn't really work the way we had planned ... We will give it a shot once again differently...

The idea behind whatever we intend to do is to bring the fun back into trading...

 

[pav]

Yes you are right.. who am I to judge people.
So, moral of the story, is that SMART people look for better alternatives.
Stupid people dont.

So, you are saying that a trader would pay 10 times of 20 rs, means 200 rs for buy and 200 rs for sell, maybe many many times a day, just because he is soooo stupid that he cannot google nse official data providers?
Then he deserves to pay it, and the broker deserves to seperate the fool from his money

PS: Sachin, dont mind my posts, just friendly banter... and do PM Timepass for references of people willing to pay 10 times more, you could take it from him, and provide him with GFDL data

GFDL data ??

 

[Zerodha]

If they were paying 100 rs a lot a year ago, then they were stupid.

Rkg was giving 9 rs per lot since a few years, and inspite of frequent issues as described by other, I have never faced a problem with their odin, leave alone a few times when the rates froze for maybe 10 odd seconds. But at that time, there was no other alternative, as Odin was a requirement for me, and no other broker was providing it with such reasonable bkg.

I recently met a doctor in Cochin who is a brilliant trader.. Trades options and shared with me his ledger for 2 years... Is up more than 300%/yr for the last 2 consecutive years... He was trading with Geojit and paying Rs 125/lot of option for last 3 years... What do you call him now?? Brilliant or stupid?? ..

No offense taken from your banter.. ...

 

[sumosanammain]

I recently met a doctor in Cochin who is a brilliant trader.. Trades options and shared with me his ledger for 2 years... Is up more than 300%/yr for the last 2 consecutive years... He was trading with Geojit and paying Rs 125/lot of option for last 3 years... What do you call him now?? Brilliant or stupid?? ..

No offense taken from your banter.. ...

I would call him extremely stupid, as with a good broker, he could have made a lot more

No offence to your doctor friend.
We are talking about intelligence and stupidity when it comes to selecting a broker. Not on how a trader trades or what his system is.

Moral... your doctor friend is an extremely intelligent trader without a nagging wife who wants diamond jewellery

 

[timepass]

Yes you are right.. who am I to judge people.
So, moral of the story, is that SMART people look for better alternatives.
Stupid people dont.

So, you are saying that a trader would pay 10 times of 20 rs, means 200 rs for buy and 200 rs for sell, maybe many many times a day, just because he is soooo stupid that he cannot google nse official data providers?
Then he deserves to pay it, and the broker deserves to seperate the fool from his money

PS: Sachin, dont mind my posts, just friendly banter... and do PM Timepass for references of people willing to pay 10 times more, you could take it from him, and provide him with GFDL data

Puttar, as the 60 day challenge shows, a lot of "smart" people paying Rs. 20 or less have lost their shirt, pants and underclothes, while, as Sachin's example shows, some of the "stupid" people paying Rs. 125 per lot are consistently making money

GFDL data ??

Good For Daily Loss data, I think

PS : I guess Sumo is also doing timepass today, as I am. My yesterday's CEs have come good today and I can spend rest of the day plucking "20 paisa" trades in options..

PPS: Now we all know about the "Nightmare on Bannergatta Road" :lol:

 

[pav]

Puttar, as the 60 day challenge shows, a lot of "smart" people paying Rs. 20 or less have lost their shirt, pants and underclothes, while, as Sachin's example shows, some of the "stupid" people paying Rs. 125 per lot are consistently making money

:rofl::rofl:

 

[sumosanammain]

Puttar, as the 60 day challenge shows, a lot of "smart" people paying Rs. 20 or less have lost their shirt, pants and underclothes, while, as Sachin's example shows, some of the "stupid" people paying Rs. 125 per lot are consistently making money
Good For Daily Loss data, I think

PS : I guess Sumo is also doing timepass today, as I am. My yesterday's CEs have come good today and I can spend rest of the day plucking "20 paisa" trades in options..

PPS: Now we all know about the "Nightmare on Bannergatta Road" :lol:

My dear friend, you are confusing trading strategy with broker selection. I cant help you understand the difference

 

[sumosanammain]

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