All your answers related to freak trades, are they only applicable to Zerodha?
Freak trades are at exchange level so for all brokers.
So that means no broker will square off your trades because of MTM loss of more than 80% just for few seconds. Right @siva-reddy ?
That depends on broker, at Zerodha we wonāt. You can check with your broker.
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A freak trade happens when a order is placed in huge quantity and due to imbalanced bid-ask price. This scenario lasts only few seconds.
Can Exchange/Zerodha bring in new type of Stop Loss Market order? I call this as Delayed Stop Loss Market Order (DSLM). Idea is to send the SLM order with a few seconds delay when the SLM price is triggered.
Lets say, I sold 36100 pe @400 and I put a SL as 500. Price moved against me/ Freak trade happened and triggered my SLM which was set @500 at 10:00:00 am (10Am 0Sec). Now delay is set to say 5 seconds, so my order will be sent to exchange after 5 seconds after the SL price is triggered.
I know this will add little more complexity to the existing order placing system, but this saves most of the retail traders.
Looking forward to hearing your idea on this.
Not possible.
SL orders sit at exchange only but in different order book, once sl is triggered it will be moved to normal order book, only way is to use sl limit orders.
So all these freak trades are happening in markets and you ppl are not providing any checkbox of limit and market orders for open positions to square off if market is going against my view and wat if I have to close all the positions the only option is to square off through market orders is the only option. Checkout fyers once they are providing the checkbox to square off short positions seperately and long positions seperately with all the order types checkbox. @siva-reddy @ShubhS9
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We will be coming out with market protection kinds for market orders in a week or two.
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Ok. I guess itās market order but not exceed certain pre set range. Say 25, 50 points. Brilliant I I must say.
Sir sir ek sl ka option bhi de do order ke saath, taaki freak trade of toh kam se sl ki range se jyada loss na ho. Many people keep orders at higher of lower levels for breakout purpose at resistance and support levels.
Siva, to escape the obvious damages when we execute SL- M, I am now executing SL- L orders for last few weeks, but the issue here being in a typical iron fly there are four legs and when I am exiting / making adjustments to my position step by step i.e. one leg after the other leg. so when I do that, immediately go guys send e-mail and sms stating that i have exceeded the margin limits, which consequently means now i am in your mercy of being penalized for peak margin so could you guys guarantee that I will not be penalized? it should not be a case of either devil or deep sea, right??
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To avoid penalty, exit short position first for both CE and PE and then exit long CE and PE.
Where do you check for freak trade ? Do you check every contract ?
Sir,
What I was looking for doubts regarding freak trades, I got all the answers here.
Thank You Sir
One thing, I will not ask your designation or position in Zerodha. Just want assurance from you that you are authorized representative of Zerodha so that all the post in this forum and assurance by you can be trusted fully.
Ankur bhai siva sir is a great person who always helps us whatever be the need, best part is he answers in least possible time. Hats off to his efforts.
BTW, from 27th NSE is stopping sl market feature for options. SL limit will be available.
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@siva-reddy Sir,
SL-M is trigger order which executes at market price once it hits the price, Is it possible to have same trigger but set an execution range e.g. SL triggering at 100 and execution range could be 99-80 ā¦ which will protect against order getting executing at erratic price as will it will provide some advantage over SL Limit (limit price trade doesnāt gets executed if it miss the limit price)ā¦ same while buying instead of limit price, range can be defined e.g 80-85, once the range is set then trade will only executes between the range instead of limit price ,or market priceā¦
Just give more gap between trigger and limit, in most cases it will execute.
@siva-reddy So, if one were long the future on this stock the previous day (held overnight), this freak downspike, wonāt prompt Zerodha to close out the position? (It would have resulted in a near 100% loss for anyone who had a long future position).
