Both my SL and target on bracket orders got hit, what do I do now?


#1

I had placed a buying bracket order on SBI at 302 with SL and target at 50 paise. The market was so volatile in the morning that all my 3 orders, the limit buying, the SL an target all got executed. I am left with a open Sell position on BO (the SL order). How do I exit this?


Weird trade today. Both bracket order's target and SL got executed
#3

Ah… this is the risk of trading bracket orders with very tight target and stoploss. If one of these legs of bracket like in your case the SL got executed, you can’t exit it by hitting exit on open positions. You can do the below to exit this:

Take a counter order using NRML if trading F&O and CNC if trading equity. So in your case if you are short on SBI, buy using NRML. This will exit your position.

If you don’t have enough margin to take this NRML position, you will have to add more margin to be able to do this.


#5

@Tarzan this is a very unique case. Do let us all know how you handled it.


#6

what happens if CNC is not enabled in client’s profile.


#7

I am confused. As per Zerodha varsity, “A type of order where you can enter a new position along with a target/exit and a stoploss order. As soon as the main order is executed the system will place two more orders (profit taking and stoploss). When one of the two orders (profit taking or stoploss) gets executed, the other order will get cancelled automatically.”

So the question is why wasnt it cancelled automatically ? Is it a bug in Algo or is it the fact that your leased line can handle a limited order flow so by the time one leg got executed and the algo was waiting for confirmation, the other leg got executed ? Would you classify this as broker technology risk ? @nithin


#9

But if the target is hit, then the SL order should be cancelled in BO, right?


#10

Will need to call our dealing team and get us take the opposite trade.


#11

At today’s market opening, stock price on SBI was moving like Rs 1 every second. So as soon as entry got hit, both SL and exit got placed. When either one hits, the other cancels, but it takes a few milli seconds for it to get cancelled. This milliseconds essentially is because instruction has to come back from exchange to our data center and then go back to the exchange. Within this few milliseconds, if the other order also gets hit, there is no way to control it. There is no way to avoid these few milliseconds. This is risk with bracket orders as a product itself, can happen to any broker who is offering this.


#12

Thanks @nithin Today is truely an extraordinary day. No where in the history of the world has any government recapitalized banks worth 50% of their market cap. I am really worried about brokers who might get caught on the wrong foot with client positions exposed beyond span and exposure margin.


#13

I have faced this problem today, My BO got executed, but due to an issue with NSE orders today the other leg was cancelled with status as “17017: order cancelled due to voluntary closeout”. As you have suggested I have placed a CNC order.
Thanks for the solution.
Also, thanks for such a stable and easy trading experience. Really appreciate the work you do.

Regards,
Abdul


#14

If your SL and Exit for Bracket and cover were cancelled due to the NSE connectivity issue today morning, it has been reinitated. If you had taken a counter position using MIS/CNC make sure to exit them.


#15

Already Did

Thanks


#17

Hey. How will I know that it is not a software glitch and i need to take counter order ? I saw my money went down 45k because of zerodha. I called 50 times to know whats happening, heard 3 options: “not a registered no, try again”, call dc within 6 sec, and did not connect at all.
After 2 hrs around 11:30 my BO stoploss in SBI got executed and I could not do anything. Who is gonna pay for this?
@nithin zerodha should take responsibility of my loss. If you are cancelling the orders, let us know by sms or keep your call line open. i was not able to square up my positions and assumed my SL must have triggered as it was impossible to understand looking at my executed orders that which order got cancelled. I am not a big investor. So 45k is my two months saving.


#19

Hi Nitin,

for this sentense "This is risk with bracket orders as a product itself, can happen to any broker who is offering this."
What is the use if on earning day your kite is not working properly…in this week our order not executed and other broker just work perfectly fine…everyone earn profit with bank stock and we were just watching the price…

if you are comparing your issue with other broker then just compare there good quality to your services…

i appreciate alwasy to your and your team but whenever there is problem dont just show apologies do some improvement


#20

I always play with BO. But still now I am not able to understand this case. As for example Tarzan took a position in SBIN at 200 with target 2 and SL 1 rupee. So he got his first target but it hits the SL. AM i right?

I guess this happens when we keep a very thin SL. Correct me Nithin


#21

Hi Nithin,

Instead of telling, few milliseconds are essential to complete an order, trace back which trade pair (buy-sell or sell-buy) already being completed and don’t allow the second sell or second buy to happen. If all it happened, have a provision to cancel it.

On 25th, same thing happened to me. There was no cancel option for the order. I tried calling whole day to your number always busy or number not registered. I mailed on 25th regarding this no response from your end. I have been calling from that day they simply say RMS team is looking into the problem. I came down to your office also, I was convinced the way your software implementation. I kindly request you to look at the problem and let me know who will recover this loss.

Thanks.


Kotak says that companies like Zerodha are going to close and is it true that companies like Zerodha make pool account & keep our money in that?
#24

Nithin,

Your actively answering for all other questions why is your Customer care and you are sitting quite when it comes to 25th October issue?
So many investors have lost lot of money on 25th Due to that Target and SL order got cancelled automatically.

I have enquirer d with other brokers no brokers had this issue its only your brokerage firm… I feel you guys are incapable of handling such issues its almost 2 weeks and no response yet.

Retail investors have micro fund if they loose money for these type of issues they will start loosing trust in your firm. Trust me what ever I have saved in your brokerage have lost in that single day

I used to admire you and your firm because of the way Zerodha was into exploring and building the new products now I have second thought.

In-fact I have referred so many people to Zeroda now most of them are questioning integrity of your firm…its high time you resolve those issues.


#25

LOL!!! Your customer care no. has a very poor response time. The call hardly gets connected, chances are 1 out of 20.


#26

Are you serious? Intraday traders obviously dont have much margin balance that’s why they are using leverage facility. How can you expect an intraday trader to take a counter position in CNC which maybe worth 5- 10 Lacs.

Hardly anyone keep 5- 10 lacs in his trading account. And 90% of day traders dont have such high capital.

You should take the responsibility of providing free counter trade. Because you have CRORES of money. :smile: If you cant help your customers then it will harm the trust of people.


#29

I’m sure your tech team must be looking at this but the better option would be to lock the SL trigger while Target order is in process. That’s what usually happens in all booking platforms. right?
If there’s only one seat and if your order is being processed, the other person can not book it as it is locked whole the previous order is being processed.