Retail traders and investors watch out - Are brokers like Zerodha counter trading?


#86

Dude, also, 2000 Rs notes have a GPS tracker through which the govt tracks your location.

Moon landing didn’t happen.

The president of USA is a lizard.

Trust no one!


#87

Who will spend time and energy in monitoring stupid order and positions that we create uselessly with excess greed


#88

I have not made up any conclusion and am open to understand what happens as there is no material any where. Can you let me know if the information from trading platform goes to Thomson server or NSE in encrypted form ?

You seem to be knowledgeable. I request you to make a small blog post depicting block diagram of flow of information. It just simply is a black box without any information any where.

Thanks.


#89

My 2 cents reply to your list…

Software does not have bugs.
Hackers do not exist.
Algo based Institutions do not like to have even a microsec edge and NSE co-location scam did not happen. (https://www.moneylife.in/article/nse-algo-scam-action-has-started-against-nse-officials-and-brokers-says-official/55295.html)

“If you are deciding the truth of whether the earth is round, it does not matter if the idea came from your best friend or George washington or Benito Mussolini. The accuracy of statement should be evaluated independent of its source”— Annie Duke former pro poker player and author of the book Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts.


#90

Practically it’s not sound logical to take counter trade for each client.
THE real game can be Order flow data/ DOM(Depth of Market) is the purest way to see order flow and the market mechanism in action.

:slight_smile:


#91

@nithin @siva Can you please clarify this? Does zerodha sells order flow to anybody? Just curious after going through this thread…


#92

Asked and answered above! This isn’t possible in India.


#93

Come on, after reading this thread one should not get new doubts, there is no concept of transferring of order flow in Inida as every order should go and match at exchange only, no dark pools exist in India.


#94

@siva @Bhuvanesh Thanks for reply. Can you please provide simple data flow chain? Like, Client–>Excchange–>Client


#95

Hi everyone, I got information that “http://www.marketdelta.com” Provide Order flow data/ DOM(Depth of Market) data to INDIAN SUBSCRIBER for both NSE/BSE.

As I have not seen by my eye so I can’t clam 100%. :slight_smile:


#96

Agree to trust Zerodha. But it is very difficult when same thing keep happening again and again.


#97

Very Good Discussion.
Learned new things, please keep this discussion alive


#98

I am sure our LIMIT ORDER, SL ORDER DATA are provided to others.


#99

The answer is yes, just that you can’t prove it in the court of law… unless you have proof.


#101

Why these broker trying to hide the truth and wants to wipe off our hard earned money.Look here https://www.livemint.com/Money/Fb3n7pMOr0eKZOoHoaB0kK/NSE-algo-trading-case-62-broking-firms-may-had-preferential.html


#102

What is firstly confusing is, how is it preferential access if 62 brokers got it? It is preferential if 1 or 2 get it. It is like doping all horses in a race. Like I have said earlier, people generally like to promote conspiracy theories.

Btw what a broker/trader can do at colo is to execute trades at much higher speeds. This has no bearing on a retail clients technical/fundamental/gut based strategy. HFT/faster execution helps mostly on mispricing strategies. So for example if a trader is running a cash future arbitrage (difference between stock and future is a certain number take the trade and then reverse when number is lesser), speed is important. But retail traders never really take such trades.

These HFT trades add liquidity to the market. If these weren’t there, the liquidity would be lesser and all of us would suffer more from the impact cost (price by which stock moves when we place a buy/sell order).


#103

Colocation can’t be justified and right. The additional liquidity is incidental but not the design. Colocation scam was just one of the scams that came out in the open. If majority are retail traders, it’s more important to prevent these so that institutes don’t manipulate.

I read zerodha team denying data sharing/ selling not possible. But, but ?!

Blackpool is not the only one. There are many other - humongous data of stop loss, bracket order, cover order, margin situation, traders who are making profit (mirror their trade) - endless!! No I am not saying there is mirroring of individual trades. But, not difficult for an organisation like zerodha to come up algorithms to set up algorithms trading. Or, sell data to institutes to set up trades.

SEBI - not sure how much we can trust. Vakrangee was given clean chit ( guess initially at least)!


#104

The liquidity maker is more important to the exchanges than the liquidity taker, not just incidential.

Not difficult for the broker if they wants to. But as a client, it is none of our concern, there is nothing we can do about it. Thats how it is.


#105

May be this is one such case?
Albert Einstein said once: “The world is a dangerous place to live, not because of the people who are evil, but because of the people who don’t do anything about it.”