What is the usual market practice if someone wants to trade large sizes.
Case 1: 10-25 lakhs
Case 2: 25-50 Lakhs
Case 3: Above 50 lakhs
In each case, would there be any advantage for call and trade ?
How can I contact multiple brokers for a best execution price for a large lot ? Does Zerodha have clients that do trades of lots larger than 25 lakhs and are they assisted by the broker in case its a low liquidity stock which has few thousands in average trading volume ?
For all practical purposes, 50L is not considered large in markets. Yes, we do have clients who place large orders and they do it via our platforms like anyone else would do. A broker cannot really help in improving the liquidity in stocks. However, in case a very large order , say 5Cr and above, a broker can help in finding a counter party (off market) and routing the trade as a bulk deal.
I too have a similar query. I have developed a trading system and plan to make 1 crore in one year.
The trading strategy is as below:
I use Jstock software with a custom indicator that scans for stocks trading above or below the 3 day typical price. I also use a 5 day RSI filter - if the RSI is above 60 and price is above 3 day typical price, I buy, and if the price is below 3 day typical price and RSI is below 40, I sell.
RSI values between 40 and 60, I dont trade. Most of the times, it helps me to avoid sideways trend and increases the probability of winning.
I do lose on certain days, when the trend changes. I have no way to avoid this loss, so I look for other high probability stocks to trade from my scans.
The trading plan:
The plan is to invest a small amount at the beginning, and look for a profit of 10% on my own funds (This is easy due to the leverage on various stocks).
Also, I reinvest the profit for the next day, and so on, to take advantage of the compounding effect.
With such a simple calculation, I found at 10% profit per day (on own funds), the amount of 10000 can become 1 crore in less than a year.
The problem and my questions:
Since I use the intraday margin and bracket/cover orders to ensure profitability, can I use the same intraday margins even when trading, say 50 lacs? or say, 15000 shares? I mean, will the margin be available even when I am profiting at higher levels?
Is there a way of placing orders for say 10-20 stocks at a time? I could not find a way in Kite.
Typically, what would you consider a large order? 1 lakh shares?
Can I email you if there are other questions as I evolve with this plan? I am faced with a situation that when things are starting to fall in place, i have doubts about how to handle the magnitude of what I have visualised.