If a person floats a Proprietary Trading Company and would like to hire Traders to Trade in F&O on behalf of the Company, would that be possible? Can a Company have Multiple Trading Terminals for users mapped to One Main Account? Is it Possible to obtain such a Service with Zerodha?
As long as money belongs to you, there is no regulatory issues in getting multiple people trade for you. So yes possible to float a prop trading company, hire traders to trade on one account.
Yes multiple trading terminals can be provided and mapped to one main account. But these terminals can’t be an ordinary terminal, they will have to be what is called dealer terminal since orders have to be placed on behalf of an account. So each of the dealer has to be NISM certified and you would have to be an exchange registered authorized person with us. There could be an initial setup cost of upto Rs 10k and then upto Rs 1000 per dealer terminal per month. You can send an email to [email protected] for more details, also keep [email protected] in cc.
4 Likes
But is it possible to have long and short positions in same stock for that firm?
For example one trader is long nifty and other is short nifty.
Logically speaking this should not be allowed. Because, with this, volume of trades could be manipulated easily. This is not expert opinion though.
Through different accounts it can be but not in the same account for the same contract.
@nithin To hire 10 traders you need 10 different accounts?
Than who will be owning those accounts? Traders them self?
If Account has to be on the name of trader who is hired by company than the money has to transfered to traders Account…How is it possible to trust traders to transfer huge amounts?
If they are not taking opposite sides usually they won’t then only one company account could do the job where they would keep limit for different trader probably. As Nitin mentioned they build different dealer terminals for one main account.
What could be done is, you can get dealer terminals for each of these 10 traders and allow them to trade on your one account. Each dealer terminal will have an ID, so you can track orders placed by whom. Your main account will also need to be a dealer terminal. The only issue with a setup like this is that you will know the orders from user IDs coming in, each dealer terminal will have its own position for intraday, but next day morning it will all get consolidated into one account. So you will have to manage positions on your own. Each dealer terminal will need set of NCFM certification, and can cost around Rs 1k per month.
Better way to do this would be using KITE APIs https://kite.trade/, you can use a developer to have a setup similar to like this built for you. This can be done such a way that positions can be tracked separately and without any additional cost/dealer certifications.
4 Likes
what is the maximum number of dealer terminal ID can be created under One Account?Does each ID cost 1k each or it is for all the ID’s.
Technically any number of IDs, upto Rs 1k per dealer terminal.
@nithin: Can you please elaborate on your suggestion for API ? Would you need seperate API keys ? Also, if the trades originate from different terminals but are for the same account, wont it be consolidated at the header account level ?
Of course at the account level, it would be consolidated. No separate API keys and all. You would have to build your own layer which will use trades to create positions/holdings etc. Not straight forward.
Is there any place / forum way to reach reliable developers? In other words, Zerodha has any authorized group of developers who can be trusted to code with KITE APIs?
Thanks.
We don’t have any authorized developers as such. Suggest you to check out Kite Connect developer forum
Thank you nithin. Will check the same.