Can zerodha or other brokers do this ? and is it legal?

HI ,

We all know MIS orders gets squared off within a day.So Zerodha takes control of your open positions at 3.20 and square off those positions not exactly at 3.20 , but randomly.Now please tell if following is possible , if possible is it legal and SEBI taken any action for it ?

Now time is 3.20 and there are tons of open positions in MIS for various scrips and zerodha takes control over it , trading time is till 3.30.

Now imagine I am zerodha or any stockbroker.What i would do is pick the scrip which has more volume or more open positions taken by traders.

For example in this case take reliance which has 2000 lots of buy order , and 1000 lots of sell orders which are waiting to be squared off.

Now what i do is I make sell order for 100 lots @ 1000 rupees , and i square off all that 2000 lots and decrease the price to 995 or whatever price , and then finally buy back with remaining sell orders.

Is it circular trading ?

Had never thought about this :slight_smile:

What you did not take into account is That Zerodha is not Only broker in Market There Are lots of brokers which Also Square off MIS Orders at around 3:20… So Suppose Zerodha Take Sell Position And Start Squaring Off Sell Orders To Bring Price Down… What about all the other Brokers… At the same time other broker may start square off all buy orders Or Randomly buy And Sell orders… And Zerodha Squaring off Sell orders May not bring price Down…

Also What are you suggesting seems market manipulation and no broker Would be allowed to do that

Even if its so, Its a fair deal isn’t it ? you get to trade for cheap and they get to make some money on the side.

“You scratch my back and I scratch yours” , whats the problem here ?

Rather I would like spend my Sunday watching Hollywood movies

Good for you. while the rest of us are busy on Sunday’s, researching into how our neighbors are prospering.

Nothing man , just curious

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But you are here in trading forum reading all topics

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