I have come across the information that nithin also has a trading and investment account apart from zerodha business!! Now if it’s true, what it means is that brokers know your trades with all stop losses, etc… So, they can easily go against your trade and take the opposite side of the trade or at least make sure that your stop loss is hit… This reduces their risk exposure and more profit…
Also, if one is doing value investing and these people know in and out of their portfolio, they can easily copy every move of the portfolio to get gains…
Hence, if all this is true, don’t you think it is morally and ethically correct to have a limitation on the brokers to trade and invest in the market of which they are themselves the broker of!! Else, if the broker has inherent interests in trading and investing for his own gains, manipulation in working of kite/pi can also be a way!!
Are you new to market?
When you started trading?
If I had a business like zerodha I would stick to improving and growing it rather than doing what you are claiming. Also unless you have any proof you should think twice before making any stupid allegations.
Okey.
Lemme be clear.
Every broker out there have prop desk. This is neither illegal nor unethical.
You don’t need to be broker or have access to use data etc to see where most retail traders have put in their stop losses.
It doesn’t matter if someone knows where the other person have kept their SL. Unless the price really moves towards your sl or tgt it’s not going to execute. Also someone’s SL is other’s TGT so saying zerodha tracks your SL and takes opposite trade is bizzare. Also on prop desk there are millions of orders going through why would zerodha be interested in your order only?
Guys, I think you are not understanding what I am hinting at…
See what he says at 13:10… They have a investment and trading portfolio… Now, I am not alleging anything, just saying that there could be a conflict in the interests of being a broker/investor/trader…
And so ethically, a restriction on this activity would be ethically and morally correct…
“Not in my order only”… But, one can develop a robust system in place… which tracks the losing traders or any trader for that matter… Than, there is a possibility of developing a system which takes exactly the opposite position/same direction of what the retail investor/any investor (for that matter) has taken…
This is what I am hinting at… No one wants to see losses, whether it be a brokerage business/investing business/trading portfolio…
And therefore, if my trades are known to someone who himself is interested in making money from the same process… There is a moral/ethical conflict…!!
@Keshu11
You didn’t confirm if you are new or not.
The so called hunting SL is a big conspiracy theory which is not feasible in reality.
People always say that there are buyers dominating today. Or buying is going on curently.
But in reality at any moment you need to have buy order opposite to sell order for trade to happen.
Also it is no rocket science to predict where ppl put their SLs
Also you won’t get it however hard you try. But there is a solution. I can explain you. Reply if you wanna know
Let me answer you differently. Once there were 2 analysts working for an investment company. In the annual review, the first guy, pretty good, getting 75% of his trades right, got a raise much lower than the other one, who had his recos 95% of the time wrong. This guy got wild, and asked for an explanation. The management replied that they also knew the other ones trades were wrong 95% of the time, and took the opposite trades!
Humor apart, this is highly thought provoking. Think about it!
You sound like a puppet of Mr. Broker… Anyways, I hope you could understand what I was suggesting… You are just trying to refute everything with sarcasm and no logic… Thanks…
Yes it is… And that is what I am trying to stand against… high secrecy/confidentiality obligation should be placed on the broker (assuming they are not present currently)…
@Keshu11
You are definitely new!
I, as a matter of fact, has been proclaimed as an headache for Mr. Broker. Just go through my profile and you will find that I have more often than not advertized other brokers like upstox, finvasia, etc on this forum. I have been in a constant locked horns with DUMB Mods of this censored forum. And this post is also gonna ne deleted for calling Mods DUMB, who they really are. So, yeh. You are new here n donno my reputation.
Coming to your question.
ALL BROKERS ALL OVER THE WORLD WITHOUT FAIL HAVE PROP DESK. LOSERS HAVE ALWAYS SUBSCRIBED TO THIS CONSPIRACY THEORY.
It is not surprising that you also suspect this. You may not be a loser, off course. But if you wanna succeed in market you need to I understand calculations and logics involved.
I repeat, it is no rocket science to identify where the retail traders have their stop losses. You need not be hacking NSE servers for that.
You see we have traders who earn lakhs in market daily. They couldn’t see any problem with broker having prop desk. There must be reasons , why this conspiracy theory was long rejected.
The newbie traders Like you must have taken this matter to courts of the law years ago. And all claims must have be rejected. So it’s not as if you have a eureka moment that humanity didn’t know before.
What are you Paranoid ?? Lol… 
The broker knows all the orders placed by his clients, including stop loss orders. This can not be stopped, as it is required for risk management. But just his clients. There are far too many brokers, and the volume of the orders are far greater in the exchange compared to one broker. It is not possible for a single broker to know the entire order book. There are other sources of orders too. Dont know about whether other source of orders available in India, like, separate terminals for HF trading, Institutional trading terminals etc.,
Trading to make a profit using this information could be very risky for any broker.
ok then. Why don’t you go and become a trading member in the exchange directly.
Then you will say , exchange knows all my orders. Isn’t this a conflict of interest.
Please read my post fully, I have only presented the facts, and concluded that this does not pose any issues mentioned by TS!
FYI, exchange does not trade for themselves, so the question of conflict of interest does not arise!
no worry @Win. The reply was for the OP. not you.
By his own paranoia , he won’t be able to trade. Good for him though.