About the Freak trade triggering the stop losses....
After looking at all the posts, firstly let me clear the confusion out which some of you seem to have...
1. Mininifty did trade at 3500, but none of the Zerodha client actually bought or sold mininifty at that price... Even the trade that got executed at 3500, was later reversed by the exchange...
2. The problem was, because it ticked at 3500, it triggered a lot of Stop losses placed in the system... Even if it was not 3500 and it was 5000, it would have still triggered all the stops...
What do I think about it??
Stock or commodity markets are uncertain and not under control of anyone... If an index like s&P could have ticked 10% down because of a freakish incident last year, nifty which turns over 1/10th of S&P and mininifty probably 1/1000th, it is no big deal... It wasn't a big deal for even the news to flash it...
These are the risks we take trading financial markets and we have to live with it. No complain to anyone will help. Markets move based on the balance of buyers and sellers. If someone decides to sell a million lots of nifty futures, he might bring it down by 10% for a few minutes... WE can't tell this guy who wants to sell not to sell...
Yesterday's incident, for every guy who probably lost a little money because of this trade, there was probably another guy who made the same...
Remember guys, the ticker is always right... If a price was recorded on the tape, no one can fight it... We just have to get used to the fact that, **** Happens !!! and move on....
...
After looking at all the posts, firstly let me clear the confusion out which some of you seem to have...
1. Mininifty did trade at 3500, but none of the Zerodha client actually bought or sold mininifty at that price... Even the trade that got executed at 3500, was later reversed by the exchange...
2. The problem was, because it ticked at 3500, it triggered a lot of Stop losses placed in the system... Even if it was not 3500 and it was 5000, it would have still triggered all the stops...
What do I think about it??
Stock or commodity markets are uncertain and not under control of anyone... If an index like s&P could have ticked 10% down because of a freakish incident last year, nifty which turns over 1/10th of S&P and mininifty probably 1/1000th, it is no big deal... It wasn't a big deal for even the news to flash it...
These are the risks we take trading financial markets and we have to live with it. No complain to anyone will help. Markets move based on the balance of buyers and sellers. If someone decides to sell a million lots of nifty futures, he might bring it down by 10% for a few minutes... WE can't tell this guy who wants to sell not to sell...
Yesterday's incident, for every guy who probably lost a little money because of this trade, there was probably another guy who made the same...
Remember guys, the ticker is always right... If a price was recorded on the tape, no one can fight it... We just have to get used to the fact that, **** Happens !!! and move on....
...
You ask us to accept that **** happens and move on....
Which means u expect us to believe that such things will happen again... in tht case just tell me who will ever feel safe in future to apply a stop loss.
Also, why wdnt some entity with vested interests take advantage of such a situation and purposefully place such freak orders in order to make a lot of people to lose money?
Shouldn't NSE/SEBI take measures to avoid these things?
And more importantly, as our broker, shouldn't you be supporting us rather than asking us to move on...
Do you think you will build investor confidence by doing this?
