HI,
how do you get out of huge positions. suppose you bought 50000 sbin shares intraday, how do you get out of it. you just place a market order and get out ?? or what strategies do you use.
p.s. note: if you have traded successfully and made a profit and dealt with huge volumes(>0.20% daily volume), then only answer it.
regards
Narasimha K
I can answer, but how will you verify this?
that is for you to verify (be truthful to yourself!!). i don’t do any verfication. its like a disclaimer!!! not to offend anyone. i am pretty sure that a profitable trader will not concentrate on that.
I’ll tell you a secret? No profitable trader goes around saying he’s a profitable trader.
You can use order slicing, disclosed quantity, Iceberg and other such features that allow you to split your higher order quantities into lower ones.
zerodha has no such thing as order slicing, we have to do it manually, i have been thinking about this, need to backtest to get a feel of the market.
Use disclosed quantity, best and easy way available.
is disclosed quantity considered as a single trade with maximum brokerage of 20 or is it considered as a multiple trade with brokerage = (total quanity/disclosed quantity) * 20.
We charge based on order and not on trade, disclosed quantity won’t change the order number hence max 20, also for cnc buy and cnc sell we don’t charge any brokerage.
you can use reserve, iceberg, hidden order types to get in and out of huge positions. no broker other than IBKR supports these order types for indian markets. but the catch here is, IBKR does not support intraday. you need to carry full margin.
if you are looking for a successful intraday strategy, let me break the bubble. no intraday strategy is scalable to 50000 qty. indian market isn’t simply that deep.
if you have a conviction that your intraday strategy could scale profitably to few lakh shares, signup with some prop trading desk which are usually located in canada and trade in US markets remotely from India. props take care of leverage and technology, given you already have strategy and capital in place, in return for profit sharing.
Does regulation allow to partner with prop trading desk on some profit sharing basis professionaly without having employer-employee relationships.
you can take 0.25 musd/year out of India for investments in foreign markets. technically, prop desks aren’t employers. they help you setup an offshore account to trade in US markets and provide you with leverage by charging you. you pay the share of your profit to props in exchange for their services.
It is not allowed as per sebi and fema !
technically, you invest your money (amount as capped by RBI) in an offshore country which is allowed by FEMA.
the offshore country provides you with leverage which is legal in their country.
you trade in equities and ETF in US markets i.e unleveraged products. so no violation of US regulations too.
fno is NOT allowed .
BUT . you mean to say that we can have leverage to trade in cash equities , ETF , MFs etc ; ?
are you sure ?
kind attn : ZERODHA ; can you pls clarify ?
This forum is powered by Zerodha, that’s all. Otherwise, its an open forum & anybody is free to respond to queries. Neither Zerodha nor its employees are obligated to respond to all your queries. If there’s someone who knows the answer, they’ll respond. Please refrain from unnecessary tagging and wait for someone to respond.
FNO is a leveraged derivative product offered by US exchanges themself. So US regulations doesn’t allow foreigners to participate in leveraged instruments.
But as I have explained earlier, leverage for US ETFs and equities market is powered by banks of offshore countries where props are located to trade large quantities of shares (US markets are deep enough).
so in the eyes of RBI, you are investing in a foreign country within limits. in the eyes of US markets, you are just an investor from a foreign country. so no violation of any regulations. 
can I do shortsell then buy ; in intraday ?
What about big order in F&O
no disclosed quantity options. Any other way to do the same ?
For indices and top 20 to 30 stocks there shouldn’t be any depth problem at-least for near month contracts. For others one can place limit orders and wait till their bid is hit or offer is lifted, normally fno tend to follow spot price unless other factors interfere. Also one can create positions in multiple strikes instead concentrating on one to avoid liquidity problem. Always place limit orders to avoid slippages.Also fno has something called freeze quantity, means only certain max quantity is allowed per order, for ex: 2500 for bank nifty, 5000 for nifty etc, it is required to break orders when taking huge positions in fno.