Dark pools you’re referring to most of the times are prop traders at investment banks who are often called Market Makers. As per my knowledge, how they work is they execute orders on behalf of their clients. If a client wants to buy million shares of AAPL at let’s say $500 that’s around $500M, these prop traders take up some percentage of commissions for executing the orders it is around 5bps I guess, basically for doing nothing quite literally. These orders are then executed by automated algorithms. The idea is to buy shares at lower prices than $500 on an agreed time frame. 90% of the time these traders spend time just managing these algorithms to ensure they are working as expected. But if they manage to get shares at a lower price which most of the times they do you see the amount of money they make… If they manage to get shares at $499 they quite literally made $1M just in executing the order, unlimited profits. But if they go above it losses are unlimited. And these losses are recovered by trading and that is where they spend 10% of the time.
It is kinda like shorting but here you get commission instead of paying the client who you kinda burrowed from. No wonder why banks are one of the most dominant industries in the world. They somehow find ways to make money. Anyway, coming to the point, I am sure there are dark pools in India as well. I mean, if i tell an Investment Bank to buy on behalf of me what’s wrong in that?. They buy and then transfer the shares at a price point they agreed on i.e. $500. There is nothing so dark about these ‘Dark Pools’. They must be there. Maybe you guys can substitute some of your lost revenue from leverages by doing just this, but there is definitely some risk but it depends on the capabilities of your algos and traders if you’ve got them there.
Of course they do, if you are a billion dollar hedge fund and you work on huge scale then you need someone to finance leverages at huge scale and huge banks can do that. But in the case of brokers they don’t really need huge leverages at that scale so big hedge funds can finance a brokers leverages as well. But most of the times it’s investment banks that do the financing though.
Unfortunately Zerodha has fallen in terms of customer services very badly, it has gone literally to dogs now. With other discount brokers closing in terms of cost…the high handedness attitude and arrogance has gone to their/Zerodha’s head. This is no more a reliable broker at value wise, other guys are moving fast. I won’t be surprised if Zerodha will lose its no 1 by this year. You can’t wake up those guys who pretends to be sleeping!
I understand you are under a responsibility to follow MORSE code from a SOP. So I don’t blame you anyway. If people start writing issues of Zerodha it will be the longest UNHOLY BOOK. Rather than asking an individual customer…classify your millions of customer service problems…classify them and please solve them.
I am done and dusted with Zerodha almost, in process of leaving whatever account I can. I posted publicly as people notice and smell the coffee! And I am not wrong factually difference between Upstox and You is closing in faster than light, so is Groww. I know Zerodha is still in la la land to pay attention. Lets reconnect in six months,…two year and assess where is Zerodha is against competitor!
Good luck guys --both clients and zerodha
Here is latest cackle joke…Zerodha support replies to your ticket in a highly knowledgeable manner except in the beginning, middle and end …yes of course without a resolution. If you want to reply them and counter their falsehood this is what to they do…
Something
went wrong
400 BAD_REQUEST
Ha ha,you can’t reply even. Of course in 3 days they will say we are having technical glitch in support website. This is like switch off the website if news are bad about you.
Sometimes i feel brokers have no voice against SEBI .
intraday margin is removed good but what about exposure margin for fully hedged option no body talks about it.
every 1 just want to get rich quicker but there is no respect for systematic trader who caps risk system wide.
Everybody wants to funds intraday trader but no body sees the discrimination for the party who is ready to pay MAX RISK AMOUNT IN ADVANCE .
Just saying what if client sells one
leg we are exposed.in usa spreads are in basic margin account,retirement account
Why cant exchange recognise same as a single trade cant sebi force that on exchange
All the time sebi screaming retail participants are too high lets increase the margin
Y not focus on making retail traders do profitable trade n do not blow thier account fast
Their risk management committe comprises of very old school proff who care shit about retail n just waiting to retire n get pensions
@varun_g@velu@namitjain2890
How is the real time data offered by interactive brokers via API? Is there any delay or missing data?
I am mainly concerned with real-time data and not historical data.
Works great, there is 100 ticker limit for free data.
Historical is great too, but a bit throttled and wont have expired contracts.
Occasionally around corporate actions in stocks, they mess with the contract intraday but usually that only affects historical i think ( not 100% sure as i use both IB and Z realtime data).
No idea, don’t have any way to test that. But from my trading point of view both are fine.
IB i don’t think there is ever any delay other than network. Platform is very stable and much ahead of competition.
They have some other issues for my use case, but platform is great.
No api is good ( but somewhat painful to code for due to async structure but mangeable), platform is great + they have a lots and lots of order management stuff that i have not even tried to check yet.
My issues because of which i cannot trade with them -
Quarterly settlement has a very slow turnaround time, end up missing most of the day. This is the biggest issue.
For those trading stocks intraday, they have stopped giving leverage ( used to be 4x many years back) + shorts have problematic borrowing mechanism taken from US markets. So basically cannot use intraday for stocks cash. But should be fine for FnO. Option buyers who dont need margin can easily use this + Z as backup i think.
Not sure, but i don’t think they allow pledging of Mutual funds. Probably don’t allow pledging itself but i could be mistaken. i did not ask them as 1) is deal breaker for me.
For someone who does not mind above, Can recommend IB. Very stable, very good platform, free api, free data, discount brokerage ( cash beyond 10L and fno beyond 100? lots, brokerage structure changes - so can split order).
They probably have the best platform in the country, certainly miles ahead of Zerodha - but they service a very small customer base. They primarily seem to work as backoffice for other countries.
Most discount brokers revenue is gonna decrease by 15% in next 1 year or 2.Rbi has approved upi for secondary market transaction (like asba for primary market) no float fund revenue
I think in future margin will be blocked by Upi for option strategy also
Don’t know current status but some years ago they had stopped intraday margin in cash completely.
Also to short in stocks, even for intraday, i think they had a borrowing mechanism taken from US markets. So you need to borrow to short and if not available then cannot short. This is how i remember it, i have never taken a trade in intraday stocks with them for these reasons.
:
against SEBI .