What is the best way to avoid losses due to so called technical glitches? These so called technical glitches are too frequent and make you lose peace of mind. I do not know when they will execute random orders in the account and claim it is due to technical glitch! One user has suggested having two accounts so the counter position can be taken in the other account to minimise losses. Usually these technical glitches seem to happen more when the market moves wild in either direction. Please share your ideas. The latest SEBI circular dated 01-04-2023 seems to be a reasonable solution (if and when it is implemented) but still not safe enough because 10 minutes (when we can trade in some sort of a mirror account) is too long. PLEASE SHARE YOUR IDEAS.
Often technical glitch occur in leading platforms when markets are too volatile.So to what extent having two accounts funded properly will work.For option writers i dont think it is feasible to fund two accounts as initial requirement is itself high as far as margin is concerned.
Almost 80% f&o traders are option writers for option buyers does it makes sense ? and it is again weird suppose one has position in any option buy side and technical glitch takes place now what in all likelihood one wouldn’t be allowed to create counter trade as it will be considered writing and huge margin will be required in first place.
Only futures trader might benefit from it if they fund their account properly so they may be able to initiate counter trade when any issue arises .But how many people trade in futures segment they are relatively lower .
can you share link for sebi circular for my understanding.
Yes you can have 2 accounts. If you have an open sell that cant be closed, you can initiate a buy in another.
Trouble is with Ghost trades when you dont know what is traded and what is not.
This cant be right 
Every traded option contract needs a buyer and a seller.
If you are unable to understand the crux of the context . I rest my case.
Not sarcasm. Only facts.
Is this really true. I always thought in terms of numbers we have more option buyers than sellers.
If you are afraid of losing your trade due to a glitch or any technical issues, go for a dealer assisted account offered by full service brokers.
Incase of a technical glitch, you can call your dedicated dealer and close the positions immediately. Their systems are different and have dedicated lines.
The downside? This service comes with a lot of brokerage.
will certainly talk to the icicidirect or hdfcsecurities. I was not aware that they place orders from some other interface than what we are given. Please also let me know if there is any such broker in your knowledge. I think it is best to have it as the second account where i can place counter orders against my positions. Thanks for the info.
I will only have a short straddle with strict sl orders to avoid undefined and huge losses. So I will only be buying the hedge position in the other account. As there are many brokers who offer zero amc accounts, i think it will not be a costly option to even have three accounts just in case two go wrong. Of course all three can go wrong but then the probability is significantly reduced. Am I wrong somewhere in this?
I trade only in index options and thus buy will not have a loss of more than the premium paid. I will have a short straddle only. And only intraday.
What is a ghost trade? I never heard about this term so far.
Yes, you can use any of these options.
I use Kotak Sec (Dealer Assisted Account) and they have given me a dedicated dealer who takes care of my positional trades and takes my confirmation on call to exit if stop loss or target has been hit. Sometimes when I have Stock Options in Positions and I want to early exit due to some reasons I call him and ask to square off and he doest it immediately. They get my Client Code from the call.
I use Kite for my long term investments and scalping Intraday trades that I do on my own.
For the aforementioned safety, i also use the same setup. But the last time NEST went down it took down the dealer terminal also. Nothing worked for a day.
They came with the solution next day saying whatever your loss was will be refunded.
what @VijayNair said is 100% true. Would need a buyer and a seller to open a contract. Most of the time it will be institutions or market makers and not just retail.
There is no way out. open 2 or 3 brokers preferably in cdsl and nsdl and get into opp. trades if your main broker fails.
You will still have losses, but it wont give you sleeplessness. Nobody can promise 100% uptime with the current refinitiv platform.
@nithin you were building an in-house risk management system right? May be that could bring down the glitches??
Hmm… w.r.t order execution, we haven’t had many glitches in the last couple of years. Even if there were any, it affected only a small subset of customers. That said, yes whenever we are live with our in-house EMS, we should further improve this.
But that said, the below is true for any tech platform (from Amazon to Google to everyone else).
it is very simple soluton…everyone allow to login direct on nse…n trade directly on nse…no need for brokers
I think it is allowed provided we are qualified and become brokers ourselves spending crores of rupees just for the feed!!! Still our internet connection or system may crash. Think the best option is to have two accounts and open counter trade in the other account. We may lose benefit of margin but still capital is most important for retailers in my opinion.
What nithin said for the Tech Platforms like Google and Amazon, applies to NSE as well. It is not immune to Technical Glitches, as we have seen many times in the past. And brokers do have a very important role to play, NSE cannot efficiently handle such huge workload on its shoulders. Without brokers, our stock markets won’t be able to work properly.