Zerodha Part 2

Status
Not open for further replies.

sr114

Well-Known Member
@ sr114:

please read the following article at : http://www.moneycontrol.com/news/ma...emkay-rs-51-crtalksbrokers_765857.html#toptag

I am highlighting some lines from that article :

"why did the Nifty index plunge 15% uninterrupted (over the previous close) on Friday when the system is supposed to shut down at the first 10% fall/rise. In the past, trading was halted on four occasions (2004, 2006, 2007, 2008) during a steep crash, and on each of these occasions, the circuit filter was triggered at a 10% drop. Trading is resumed after an hour in such cases, and if the index rises/falls another 5%, market is shut for the rest of the day."


sr114, you were trying to act over-smart, pretending that I don't have any knowledge of how circuit filters works. I never ever judged u , but the fact was that the drop was sudden and it was 162 points below or 15.29% drop - where it occurred - in NSE Spot, SBIN, RIL, ICICI Bank, HDFC and what were sparred - NSE Nifty FUTURES - no such drop in that counterYou were showing reasons like drop bypassed 10% and was asking me to look at the charts. My question was that why the 10% circuit filter was not able to stop NIFTY from dropping below -10% ?? The duty of circuit filters are to halt trading immediately, and these are special circuit breakers i.e. these type of circuit breakers when triggered brings a Market-wide trading halt across all the equity exchanges. As per NSE website, "The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier."

Please don't get me wrong, I am just trying to point out the right thing. I don't have any personal cold war against you. We all are friends here in TJ. :) I am just pointing out how NSE is just making fool of us. So take a look at the quoted lines below:

"there were no signs of a broad market panic, why were these players allowed to put such bids. Did they really think they could buy stocks like Reliance, HUL and Bharti 20% below the previous day"

I understand that it is not fair to discuss these kind of things in Zerodha's thread. Moderators forgive me for that.
I am not going to judge u or any body else about the circuit breaker knowledge or what NSE are fooling us or not? but the hard proof lies in the chart. see the chats - the duration of the drop (viewed in sbin quotes and how it recovered). what nse cud do is with them, last time they suddenly adjusted the lo rate, we all are aware of it.

also i am not waging any cold or hot war - i am a small trader who try to figure the scenerio thru the charts - may be this is my fault. and i am ready to commit this fault again. and i responded to ur post to highlight the drop - not the cause of it.

look at them

1. nse spot daily


2. nse spot 05/10/2012 intraday


3. nifty futures intraday


4. icicibank 05/10/2012


5. sbin 05/10/2012 ( along the quote editor )


6. ril 05/10/2012


sr
 
Last edited:

Trader J

Well-Known Member
Sir I have not made a new I'd trying to pretend I am some
One else the reson is I got in an argument over a attorney
Of zerodha about my right to raise TRXN charges

He was so desperate to defend them that the language was such
That both ids got banned by moderators

I hope any one who now wishes to defend them will use
Appropriate language so we don't have to come with new ids
With old question

One more thing I would like to predict zerodha guys
Are reasonable people so they will on there own reduce
TRXN Charges they know they are not doing the right thing


Now coming about margins that will also start in some time
As competition is heating up and many discount brokers are
Providing it they will also

So I don't have any thing left to complain but if some one raises
The issue I am free to reply till then ? Ain't I

REGARDS
Dear My investmentz,

It is cleared to me and I also confirm from NSE that the brokers are allowed to fix the transaction charges which include clearance charges. Zerodha replied many time that they may reduce or may be not reduce, so lets hope..Now lets hope also for good competition in discount broking business.

One more thing I observed from past that the equity broking business not so stable, I remember that when 5paisa launched. in one year they become largest client holding broking firm, and now a days they dont care broking, they entered in other financial business.

Regards
 

a1b1trader

Well-Known Member
Re: Does Paying STT on a proftable trade reduces my tax liability?

Dear Sir,

Suppose we make aprofit on 5 lakh trading in stock, will be taxed same as one pays on his salary. Or will it be flat 15% i.e short term capital gain tax ??
Hi ND
I think you should raise this question in a taxation thread, with some more detail like trading stocks (equity or future, intraday) or investing stocks (delivery), as the taxation treatment will be different for these 3 variants.
 

Trader J

Well-Known Member
Dear soft_trader , timepass, sr114,

I want to say regarding "The market-wide circuit breakers" as following.

I checked and found that there is "No Price band" for all 50 NIFTY stock and All 30 BSE stock, so if price decrease by 20-30% (or may lower) any heavyweights stocks, the NIFTY will go down significantly, and if exchange have fixed a level to halt trading say 5 % , Than trading will stop but the index low level will show corresponding to the stock prices because stock doesn’t have any price band. I hope it may help….. Thanks
 
can you tell me from where i can get this quote with timing thanks



I am not going to judge u or any body else about the circuit breaker knowledge or what NSE are fooling us or not? but the hard proof lies in the chart. see the chats - the duration of the drop (viewed in sbin quotes and how it recovered). what nse cud do is with them, last time they suddenly adjusted the lo rate, we all are aware of it.

also i am not waging any cold or hot war - i am a small trader who try to figure the scenerio thru the charts - may be this is my fault. and i am ready to commit this fault again. and i responded to ur post to highlight the drop - not the cause of it.

look at them


5. sbin 05/10/2012 ( along the quote editor )



sr
 

shekharinvest

Well-Known Member
Re: Does Paying STT on a proftable trade reduces my tax liability?

Dear Sir,

Suppose we make aprofit on 5 lakh trading in stock, will be taxed same as one pays on his salary. Or will it be flat 15% i.e short term capital gain tax ??
If it is through Intraday equity or F&O trade definitely treated as income and taxed accordingly.

As for Stocks on delivery basis. It depends on the interpretation by the IT officials based on your trading history. If couple of trades here and there it may be considered as short term capital gains. On high frequency of trades, well you know about power of discretion... :D
 
when i try to open zerodha trader it throws an error message says 'Nest initialization failed for interactive engine <<os error>>'? anyone knows why this error occurs?how to solve it?
 

soft_trader

Well-Known Member
I am not going to judge u or any body else about the circuit breaker knowledge or what NSE are fooling us or not? but the hard proof lies in the chart. see the chats - the duration of the drop (viewed in sbin quotes and how it recovered). what nse cud do is with them, last time they suddenly adjusted the lo rate, we all are aware of it.

sr
I saw the charts. I understand what you are telling, and you are also telling me to see the duration and the speed with how it recovered. Now I want to say one thing. Circuit breakers are meant to break the circuits, it is like Electric Fuse. Now as per your theory imaging a situation where nifty dropping 40% in one shot, thereby bypassing all the circuit limits what will happen then??

Circuit breakers are there to stop the index from falling beyond 10%, 15% & 20%. It is the duty of the CB. NSE has serious problem in the CB mechanism. Left aside the 10% CB. When the 15% CB got triggered on Friday then why not the trading in BSE also got halted ??

It is a well planned conspiracy by NSE officials and some rogue brokers. It's pity they every time we small retail traders will suffer. :mad:
 
Status
Not open for further replies.