I have seen videos of many popular youtuber option traders. When they want to trade (buy/sell), they just enter the quantity and place market order to buy/sell.
Now I know, the chances of freak trade are more in “SLM”, but normal market order can also face freak trade, right?
Why those people are not afraid of placing market orders, when they have capital in crores. Including Zerodha, when zerodha auto squares off, they do it in market order.
Market orders are not a problem if there is enough liquidity and bid-ask spread is not much.
But I think, there was liquidity at those time, when freak trade happened. But it suddenly disappread when someone placed huge buy/sell order.
If liquidity can vanish suddenly from one guy placing a big order you are likely trading in an instrument that I would call illiquid.
It happened in ATM options in Nifty, Banknifty. They were highly liquid.
Well I regularly trade with ITM nifty options close to spot. Never had a problem in last 5 yrs with market orders. If you are worried about slippage in market order you can put SL-L or limit orders.
We know. But this incident has happened in the recent past. You were just lucky to have not been affected. That is why he is asking, why suddenly the fear seems to have disappeared. Mitigating risk is important.
Luck favours the prepared mind. With 1-15 lots of Nifty options from 2017-till date there is enough depth in the ITM option market to support that order size. But as the order size grows bigger the slippage could go high. So then I will think of limit orders. This boils down to the use of the tools at our disposal based on our needs.
Few months back freque trades happened very regularly but suddenly they disappeared
I think its because of less usage of SLM orders
Hi, freaks trades are gone because SLM is blocked from exchange. Market orders are not an issue because orderbook now has sufficient liquidity due to SLL. You don’t see SL orders in orderbook(they are 2nd level order) but all the orders come up when prices moves up or down .
So you are saying it’s safe for me to execute orders using market order, with 0 chance of freak trade. I know slippages will happen but not huge like freak? Not talking about sl order.
Yes, chances are close to 0 for liquid instrument.
There was very detailed discussion on this topic on the forum and NSE came up with circular for its resolution. Its sorted now and i don’t see anyone reporting freak trades anymore.
Just want to know whether there are any in-house safety mechanisms with Zerodha for exiting order from the Positions tab → selecting open positions and clicking “Exit All” in one go (which usually gets executed as Market order by default)
Can freak trade happen for such orders? What about any safety measures in Zerodha app?
Try, SL limit order.
I also have this query please…can I exit all positions in one go without risk of freak trade?
When we try to exit all positions in Zerodha the default order type is Market. We cannot change it. So freak trades can happen if there is not enough liquidity. This is how all brokers I know do and not just Zerodha.
If this is not market order then we will have to specify a limit order for each position which defeats the purpose of having the exit all positions option (speed) . So if someone is worried about freak trades use only limit or SL-Limit orders.
Can someone develop an extension or something to allow to exit multiple positions with smart limits…say 2 to 3 rs more for buy and 2 to 3 rs less for sell … automatically?
What a feature it would be…!!!
Exactly my point in one of my another threads also
I am from the SW background (a SW Architect) - basically wrt SLM order it is type of SL order with a default SL (global setting) say any value people are comfortable or a default value for the Zerodha platform for the price range the order will go thru.
Another suggestion this should not be constant value but a percentage setting for the current LTP so that it is applicable to all instruments & price ranges.
If price jumps then let people modify the SL in the open orders or re-excuete again at the current LTP with the SLM order.
The other view point from @siva-reddy would be then pls use SL orders but when we want to exit positions in live market very fast no matter how much experience u have or planning u do exit all positions is the only way 
We are OK with minor slippages but not account wipe out
@siva-reddy @nithin - Would this not be possible to implement in the Kite platform - do we really see any technical difficulty