Person who have only 10 lacs in his/her account can make very high impact on this kind of stocks

#1

For example

Just assume that I have 10 lacs in my trading account and i use Full leverage with help of CO or BO

So now that means I can buy 10lacs×30=3crore right?

So if I Fire Buy Order on NESTLEIND Fut so what was happen Next…?

So according to this market depth person who have only 10 lacs in his/her account can buy entire offer quantity of NESTLEIND Fut

That means person who have only 10 lacs in his/her account can make very high impact on this kind of stocks

So Is This all right or I’m missing something?
@siva @nithin

#2

You are right.

1 Like
#3

Don’t consider mkt depth as actual demand and supply. If you start to buy more sellers arise.

4 Likes
#4

Its the market orders that move the price.

#5

I thinks some algos and arbitragers will jump in this kind of situations but don’t know exact scenario

#6

Why algo ? Another person with same capital trading in opposite direction enough to make no change in price. They make pnl based on their exp.

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#7

Yes but these moves and opportunities go very quickly which is very difficult to identify therefore there is some sort of algo and market making involved in this.
There all lot of time when I don’t see bids or asks in illiquid options but when I place limit order it executes within a micro seconds which is not possible for any human.

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#8

Never think that you can move the market with just 10 lakhs. Most of the order are hidden, that is you cannot see the entire order quantity. Also what would you do after you have moved the market, participants are very less and you would loose money through slippages in the bid ask price.

4 Likes
#9

You cannot outsmart the markets…there are big players who know how to manage prices & index.

1 Like
#10

AFAIK, only “disclosed quantity” is shown in market depth. So with 10 lac you won’t be able to fill the entire offer quantity.

#11

Just FYI, FNO doesn’t have disclosed quantity but yes algos can always hide exact orders.

2 Likes
#12

Lol thats what operators do all the time , they move the market

#13

Other than you, there will be many people also who might have same thought as yours.
Stronger bull will win and other will lose.

#14

as per i know futures go parallel with the spot price.and most important to put that much quantity i think the overall volume is low so even if you would invest the amount there are 3 possibilities either half of your order being not executed or else trade might go according to your wish or else people will start putting the spread