u may be correct, but not on how zerodha may control your individual trade and SL.
It may be some insiders who provide details to SMS/ADVISORY services FOR QUICK MONEY
Myself has also account with Zerodha I also feeling something fishy in Zerodha
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@Rajendra_Mardikar
Either you will learn and id your mistakes and turn profitable OR you do not learn, make losses and continue accusing others.
That’s market.
Earlier my SL also used to get hit always, but now that’s not the case any more
Stop hunt by brokers Is aconspiracy theory. But several other conspiracy theories hv been proven right in trading & a few reputed banks hv been punished. Few Proven conspiracies are “spoofing” “front running” “ riding death spiral”.
Stop orders are only known to ur broker & not yet placed on exchange. Stop hunt in foriegn markets are easy because brokers themself can settle trades without sending orders to exchange(dark pool, forex trd). In indian context, it is possible if there is collusion between a few large volume brokers. Collusion, private chat rooms r not a uncommon thing among indian brokers. So this conspiracy can come true also.
Having said that, SL getting hit n reversing is not my problem, coz i don’t day trade, i hv wide stops definetely away from where daytraders keep it. I also keep thinking abt stop hunts when i place a stop.
Markets are a big bad world. Nothing cud b ruled out.
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Big players know our stoplosses, if you aren’t aware of it already you probably are a newbie
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Mate invest in equipping yourself with some training!! Otherwise u will always look for others to blame!!
PNB traded 17 crore shares that day and if you think the operator is after your SL which is on a few thousand shares at the max then it’s big time you stopped trading.
On this topic I would like to further add that popular people who provide tips often give SL’s and also on TV channels when they provide calls they give SL’s these can be leaked and manipulated. A firm like zerodha with such a huge customer base and plans of still expanding will not do something unethical like this.
Zerodha keeps information 100% safe.
Regarding the SL orders, you receive an order number as soon as you place the orders, which means immediately after you place your orders , it is directly sent to the exchange. No broker will have a co-location server , he always has his terminal directly connected to the Exchange which is why he ends up paying a huge sum of deposits , and do you really think exchange would give away brokerage licences just like that without any security checks?
There are always a possibility of data leak from the vendors and every system has chance of a loop hole.
If Zerodha was doing this, then it wouldn’t have been easy to have a customer base of 6,00,000 +.
There are about 5 million active traders in India registered across various brokers. Assuming 20% of them place SL orders, do you really think it is feasible for any broker to send real time data to those advisory companies?
A discount brokerage like Zerodha would definitely not even think of doing something like this.
Coming to PNB stocks, kindly check the volume which was traded from 15th of Feb and you would see the volatility yourself.
I don’t think anyone would suggest having a +/- 2 points SL range in a highly volatile stock.
Just because you end up making a loss when you place SL doesn’t mean it is always like that, it just means something which you are doing is wrong, so try to increase the SL range and check.
Since you have mentioned you are not a beginner, I am sure you understand the risks associated with the markets and also whatever I have explained.
What you need to keep in mind is there are a lot of vendors between the exchange to the clients and all details except the trade details are routed through them. The orders are directly placed on the exchange servers!
Happy Investing! Cheers.
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SL orders not sent to exchange.
Exchanges aware of only two types of order LIMIT and MARKET
The Order Book of exchange only contains LIMIT orders.
The SL orders are stay in the OMS and the OMS will continuously check for the Bid/Ask price to break the order trigger price. Once triggered , OMS will route the order to exchange as LIMIT order if it is SL or MARKET order if SL-M.
So practically, OMS can see all the SL orders (Placed by their clients only) and price at which most of the SL orders are accumulated. If the brokerage firm is big enough like zerodha (lot of active clients) , any one can manipulate with SL order details + hue fund.
But that doesn’t mean ZERODHA is doing.
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SL orders are sent to the exchange, actually. The exchanges hold these orders and on their system convert it to limit or market based on whether it’s an SL or SLM order.
Here’s a screenshot of a pending SLM order I just placed.
You’ll see that it bears an exchange order ID. This can only be assigned by the exchange.
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SL is not a separate functionality provided by Zerodha!
The SL orders are placed on the exchange order book directly.
Trading platform directly routes the orders to the exchange, which is why an ORDER ID is generated every time you place an order!
So there is no question of saving orders on their own servers and then sending it to the exchange which is why I mentioned that Zerodha has no co-location servers!
If what you say is true, then there would be a time delay every time you place an order which no broker would want to risk!
Here’s a link on NSE’s website, if you want to read more about it: National Stock Exchange of India Ltd.
Could you pls confirm, this orders exists in the exchange order book?
Even, @nithin has mentioned somewhere this SL orders with OMS.
Suppose if I bough some stock and placed a SL sell order, as per your reply, the order is with exchange.
Say, zerodha OMS went down for the entire day, during the down time the price hits my SL trigger price, as per you reply, my SL should be executed by exch and I should be out of my position?
Is it correct?
Yes, once the order is pending at exchange, order will be executed irrespective of failure of broker oms, but you may not get response back on order execution till oms is up.
Also SL orders will sit in exchange sl order-book, once they are triggered based on limit or market stoploss given they will become either passive or active orders.
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OMS is just a system which links the trading terminal with the exchange.
Without an OMS , it becomes difficult for the brokers to collect orders from each user and then send it to the exchange.
I mentioned brokers routing the software directly o the exchange, and OMS is what facilitates that.
So even if the OMS servers are down for one entire day, if you have already placed an order, it will get executed based on that.
OMS basically is used for,
- Placing an order
- Modifying an Order
- Order status update
Hope this helps!
okay… got it
@maddy_Des, How did you get around the SLs not getting hit nowadays? Pls share, will definitely benefit the group immensely.
@Lakshmikanth_Jadhav
Sir, Will write a post about how my perceptions about stop losses got evolved over time.
Basically its about “Reading the tape” method which is supposedly extremely difficult and very highly experience, high skill, PG level etc etc thing but I found very easy, lame and 100% working.
Off course I am not going to say that its 100% as I am still observing but last 20-30 trades gave me 90-95% results. 
Will post on stop loss soon.
IF SL orders reside at Exchange server. Is it possible these SL order can be seen large operators like those who have direct market access / brokers.
@Matti @nithin
I thought that SL orders remain with Brokers till Trigger price is reached.
Once trigger price is reached it is sent to xchange as Limit/Market orders.
Is my info wrong?
Sl orders will sit at exchange level stop loss book, once it is triggered they move to limit order book ( passive) or trade at best available prices( Active orders) based on condition given once triggered.