We should be thinking objectively, we cater to retail traders so comparing to HFTs is not right. Said that still I can say our feeds are one of the fastest available to retail traders in India. I can claim mean/avg speed of our order placement is much faster than any other retail broker in India.
I can say other party is not broker, may be data vendor. Exchange provides different sources to brokers and data vendors.
No, it will remain the same. As I said data vendor and broker has different sources.
One should never try to compete with institutions in terms of info or speed or execution, but with respect to strategy or returns.
[quote=“vishnux, post:1, topic:62993”]
for scalper like us this cause lots of slippage
If you haven’t realized it yet then may be due to your ignorance, sorry for that. From past several years manual scalping never beaten institutions because of the resources they have. They are equipped with super computers to spot the gap and fill it quickly before human eye recognize it.
Let me explain this, let us break the trade cycle into three parts. 1. Data 2. Strategy 3.Execution.
1.Data- One need quality data with faster ticks and the more breadth the better. Exchanges provide similar kind of source to all brokers with 5 market depth(Level 2) but still we can notice slight differences in speed from broker to broker and that depends on brokers infra. What ever broker does there can’t be improvement of more than few milli seconds. As I said earlier Zerodha feeds are little faster compared to many. If one want level 3( 20 market depth or more) only way is to have a space at colo or subscribe from data vendor by paying exorbitant prices. If one want all the ticks then only option is to go for colo which costs a bomb. On availability of level3 data to retailers at much cheaper prices we are trying to find a solution which is not available currently anywhere in the world.
-
Strategy- Even though both retailer and HFT has same strategy for scalping, it is an obvious fact that machines beat humans in computing. Hence we have to accept retailer can’t win over machines with scalping.
-
Execution - This is the most important and less understood part. Suppose assume retailer has spotted the opportunity and placed the order before computer does even then this order has a path to follow. Order placed on retail platform will hit RMS first. RMS ( Risk management system) consists of few rules mandated by SEBI and few rules specific to broker, for ex: order quantity, order value, if scrip is in ban etc order has to pass through each rule and at each rule some latency is added, the more rules the more latency. Institutions use something called DMA( Direct market access), this skips most of the rules thus decreasing the latency. After passing through all rules order will reach to adapters via internet and then to exchange via leased lines thus adding latency at both adapter level and leased line level. This is the main reason for institutions to opt for colo, where they can directly connect to exchange adapters cutting down all the latency.
I am not quoting this to you but my general observation after interacting with many, few times people blame brokers or lack of features on their platform for their losses instead trying to understand the actual dynamics of markets, only bad workers blame their tools all the times.
Finally I want to say don’t compare retail to HFT as both are different ball games. We are trying hard to bring the gap closer but we can’t eliminate it. Hope you will get it now.
You are most welcome, just an email away. You can attach your resume and drop a mail to [email protected].
develop the retailers.