Options prices are already confusing and to add this I recently discovered the option prices are different between brokers. Why would that be?
I have tried three brokers, Groww, Shoonya and Zerodha.
Groww and Shoonya are showing same price at every tick. But Zerodha is showing different at the same time. See the gif image, it is 0.25x slowed for clarity.
Left Zerodha | Right Shoonya (and groww are exactly tick to tick)
If the exchange is same why there would be difference in pricing. Please don’t say that the price difference is minor so it doesn’t matter. Even 0.01 matters for HFT systems.
I tried with various networks configurations like Wifi, mobile hotspot and on multiple devices.
The issue still happens and Zerodha is always out of sync. So it’s surely not the ping issue. Regardless I would like someone to test it with other brokers if someone is using multiple brokers.
I can only think of one reason for this behaviour is because option prices are derived from Black & Scholes model. A broker might use a different variation of the method for price calculation (i am not sure if that happens at broker level but I can’t think any other reason why they are different).
For me the issue is that I am using Zerodha API. The ticks on Zerodha are less frequent and delayed compared to Shoonya (Groww is badass it’s super fast maybe because it doesn’t have the overload of API clients). If I place order using Shoonya pricing and place it on Zerodha, I wouldn’t get the desired buying price and that’s a problem.
Sometimes the deviation is as bad as 3-4 points. @Pai looking forward to your response.
If a scrip becomes too volatile when there are too many ticks at once, other platforms may display different ticks. We can compare the LTT to see if there is a delay. If you see this for an extended period of time or if the tick freezes,. Please share your ID in the DM. I will arrange a callback to look into this further.
