Low brokerage leads to people overtrading

[SachinSingh]

Ye freeze limit bas ek kamane ka tarika hai, aur kuch nahi. This talk of doing it for the “safety of the retailers” is just bollocks.

@SachinSingh

Few years back, the max order size used to be 7500, then it reduced to 4950, and now it’s 2800/1800. Also, it never used to get revised at the end of month either. So call it a conspiracy theory or whatever, but many traders including myself feel that this was done to compensate the brokers for the intraday leverage being taken away. In June last year, they first reduced the lot size to 50, then in August, this max order size limit got reduced, and finally in September, the leverage was taken away. People say this was done to prevent freak trades, but that’s just bollocks. Freak trades kept happening after that as well, and still do, though they have reduced.