Sensex waas at 66590
67k ce hit 209 from 5 rs with 5 lac volume in a moment.
67100 ce was same.
algoz issue? hope retailers didn’t burn der accts
It was Tapas known as tradinglegend on telegram shotover 250000 qty order that caused this spike and he lost -78l in this trade.
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Algos and certain broker allowing SLM orders
Sorry it didn’t generate enough return like fat finger …the premium which gave more returns than a fat finger could imagine was nifty 7th September 19700 Call option on 7th September…it went from 7 to 65 …there retailers probably made money…
There was a special report in CNBC-AWAAZ CHANNEL on this particular trade -
What happened today in the Sensex call? Price surged from 4 to 200 with volume of 5 lakh.
https://twitter.com/_anujsinghal/status/1700088745524158565
Also notice the post about this very cute kid asking about this algo issue - https://twitter.com/indian_stockss/status/1700176347589456210?s=20
Seems more like over-reliance on technical analysis making the traders trade unrealistically. Is it possible some technical analysis kid was looking only at the Option Premium chart and nothing else? A single large order could have made this happen then. Could have been algo too, if we assume no-stupidity of anyone here. (But even the algo was stupid, so the coder of it definitely was).
Thanks for the info, @TB2485
He actually shared the complete details about this 78 Lac Loss in this video -
He basically means to say that Fyers should have proper mechanism to warn the clients, before they place such SL-M orders.
This trade clearly shows that even Option BUYERS could still end up loosing MORE THEN the price that they have paid for buying a contract. Usually we think that the Option Byers’s risk is fixed beforehand, but not in such a case! Quite an eye opener incident.
Regards
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He had a margin of over 1 crore and was saying he took the SL-M trade with 15 lakh capital—such a ridiculous reply.
It’s like
@nithin Give me my money back, which I lost in trade. It’s your fault you didn’t stop me from taking trade. Same TAPAS has an allegation with Fyers. The pot is calling the kettle black!
25000k lot = 250000 quantity
Average price = 37 rupees (not Dirham)
Total Cost = 250000 * 37 = 9250000
LTP = 5 rupees (approximate)
Profit = (5-37) * 250000 = -8000000 rupees (not Dirham)
already having a profit in BankNifty of more than -20 lakh (not Dirham).
Total loss will be -1 Cr Rupees (not Dirham).
@nithin Can you tell me what the current MC is? 25% or 30%
If 25%, then 37*25% = 9.25. If LTP reached this level, the broker had the right to unwind the long or cover the short position. And everyone had their consent in full consciousness with IPV. Everyone has the right to blame and complain, even brokers, but it should not be false accusations.
I saw the video and it seems like he didn’t have enough aptitude to properly understand what the order-form itself meant, also it felt like he had taken it naturally that the broker would stop him from putting a market order, that’s insane. It clearly meant on the form that it was a market order, then why would the broker ask again whether he was sure to go ahead with that? I mean, did he think he was on KBC with Amitabh Bachchan? A broker can be held responsible for faults at their part, but this was not one of them. It is Amitabh Bachchan’s kindness that he asks if the answer is with confidence, a lil bit of cinematic appeal too, but not his responsibility, I mean, wouldn’t he become a portionate answerer if he interfered in that manner?
But on the mobile app it seems like it could have been Fyers fault. I really didn’t see it very clearly. If it was mentioned as a Limit order on the movile app, it would be Fyers’ fault since it was definitely not a limit order.
People sending large orders while not being familiar with interface is crazy. Maybe he wants publicity, dunno.
This telegram/twitter/yt world of traders is really a crazy place. Better to not look at any of this stuff - other than for possible entertainment, but there are better things to do.
Who had taken trade TAPAS or SoamJena. One saying I have taken, other saying I have taken.
just to add context, he entered trade with 300+ orders with 280,000 qty (ie. 28K lots).
and then put a SL-M for that kind of quantity.
Recipe for disaster.