First retailers are removed from selling options, than the TER is removed. .and than freak trades start happening 2000 rs option opens at 1 rs, 80rs option gets filled at 800rs. .does someone else smell a fish in this or this is all a BIG coincidence. .
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May I know why this 803.05 high is not present on any of the intraday time charts ? like on 1min 3min 5min and onwards
I am guessing you have read this:
I have updated that post with this.
By the way, many times these freak trades may not show up on the charting platforms provided by your brokerage firm. Charts are formed by the broker from the data that they receive from the exchange, typically 1 to 4 ticks per second. The actual number of trades on the exchange can be much higher in that 1 second, which means all trades that happen on the exchange canât be shown on the chart due to this technical limitation. Check this article to read more.
Can we raise our concern to NSE and bring back TER?
Like I have mentioned in the post, even with TER there were a lot of issues. Every time the market moved fast, trading wouldnât be possible on many contracts for a few minutes, affecting all customers.
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Nithin Sir, I do agree TER had issues like order getting cancelled for few seconds, But it was only happening in violent moves and it was already accounted in slippage losses of 1-2 %. But idea of freak trade and wiping out capital looks very scary.
As suggested b you, we need to get rid of market orders and shift to Limit orders at the same time to ensure fill at market price. My Concern is even after adding lets say 2% addition to price of limit order, will my order gets filled in violent moves. How would i ensure my order gets filled in time sensitive trdaes.
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Nithin sir, order not getting placed is better than 80rs order getting fillled at 800rs or 2000rs option getting sold at rs 1. Please raise this concern, any more freak trades happen and the silent majority of the traders will simply shift to some other way of living. No one can trade this way knowing 1 micro second will wipe out your entire capital in the market, and no one will be held responsible for so called freak show.
This internal dynamic execution range that we are introducing, it is just a matter of time before all brokers are forced to offer this.
Once enough brokers have restrictions on how far trades can get executed, these freak trades will automatically stop. Btw, the total loss customers together were facing due to trading in some contracts not opening up while the market was moving was also much bigger.
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Great Sir for leading such idea of having Dynamic Execution Range Check. Kindly let us know if you have any timeline in mind for this implementation.
Most likely in next few days this should go live.
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Correct.
This is SL-L order as price is shown as 168. For SL-M orders it is shown 0.
In absence of Nithinâs response - This will make clear candidate for glitch or forgery at zerodhaâs side.
@nithin : Your clarification is much needed here for your customers trust in you.
not only in Nifty and Banknifty, it is happening in equity also.
As it happened yesterday 23Aug,21, Monday in HEG stock, showing day low 2107.7 in chart, but if u check daily chart, it made a low of 1807 in a second and went up.
Lot of traders lost their money there also.
please check @nithin @siva-reddy and fix the issues in the best possible manner.
Peole are scared to trade now, if this happens again & again, not only traders/retailers will lose money, but brokering firms will also be at huge losses due to less or no participation of traders in near future(directly affecting the brokerage revenue of these big firms if people are scared to trade).
Thanks in Advance!
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We will be doing what we can in coming days. Will give some kind of market protection.
This kind of spike is very rare in liquid stocks. + use SLL orders with wide space from trigger to limit covers the risk reasonably. As long as we get recovery, we will be protected from unreasonable prices and will just have to live with bigger stop hit for a trade. It can happen, but is no cause for panic or fear.
If this became a regular occurrence, then keeping stop with exchange could become a problem.
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Its really funny @SpacemanSpiff.
Experts always say place SLM orders for protection since beginning that is also logical but now things change, and all are saying place SLL order after these back to back freaking trades. Personally i dont think this is the best solution becuase if it happens once in a blue moon, its understood but its happening every other day now.
Really spreading a scary environment!
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Problem might be less for those who go for a single buy at a time they can afford to set sl-l orders,but those who are deploying multileg strategy issue will come in placing manually the limit in each part of the leg, basically any move happens while placing and one side of the multileg will become too small to hedge. Not to forget each sell needs a far away buy too these days.
Its a tradeoff. market order implies your are ready to buy/sell at any price. Only Circuits/Execution ranges can provide some protection if imbalance is momentary. SLL with very wide but reasonable limit is almost same as market order but protects against spikes. In return, if the move is real and you were unlucky in not being able to get out then you will have to exit at worse price. So pick your poison.
I have been trading in stocks with SLL order for both entry and exit for 2000+ trades now. Entry has tighter limits and exit orders have very wide limits - as a multiple of distance between entry and initial stop. Once or twice i have seen stop getting slipped by a large amount. In one case, it did not get filled initially but did so on return.
Other that this, i have not faced any problem at all. Pick liquid stocks with high daily avg volume , say above 100cr over last 12 months. They trade fine.
Options might have an issue with execution ranges gone and liquidity divided into so many books along with execution complexity. But stocks for now are fine, nothing has changed. And if you still feel scared, you can move to daily/weekly timeframes where impact of noise will be lower.
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Thanks for your response,
Got some confidence for tradingâŚ
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First the buyers were like âwhatever we are gonna buy anywayz who needs margin it is the sellers problemâ, once sellers are gone and freak trades start coming, now they are buying 100rs worth in 800rs and saying no to trading. Whose number is it gonna be next who thinks âbuyers or sellers why should we care we are getting paid anywazâ.
Yaa time will tell.