SUBJECT : Refund of Rs 12000 by Loss incurred by Risk Management Team of Zerodha Securities

#1
To,
The Compliance Officer
Zerodha Securities Pvt Ltd
SUBJECT : Refund of Rs 12000 by the Unnecessary Loss incurred by Risk Management Team of Zerodha Securities Pvt Ltd by squaring off my 24300 Bank Nifty Put Option Expiry 24/08/2017 without Intimation without Consent for Ac No - ZL4615
Sir/Mam,
1- I am fully aware of clients that pay higher STT and accounts go into negative in Bank Nifty weekly options that expire and go to zero at 3.30 PM but I had enough balance of more than Rs 89000 in my account so A BROKER (ZERODHA SECURITIES PVT LTD) SHOULD NOT UNNECESSARY CANCEL A PLACED ORDER (WHICH COULD HAVE GOT EXECUTED IN PROFIT ) AND CREATE A UNNECESSARY LOSS TO ME (Rs 12000). THIS VIOLATES THE FUNDAMENTAL RIGHT OF A CLIENT TO TRADE BY CANCELING AND SQUARING OFF OPTION TRADE IN LOSS UNNECESSARY (WITHOUT MY CONSENT ) ALTHOUGH I HAD ENOUGH BALANCE TO PAY THE REQUIRED STT
2- I had bought two Options-
(a) Bank Nifty /24400/ Call Option (24/08/2017) – Buy (Exchange Order No 1400000013945686 at 14:59 PM Time (600 Quantity) at Rs 7
(b) Bank Nifty /24300/ Put Option (24/08/2017) Buy (Exchange Order No 140000001444324 at 15:01 PM Time (600 Quantity) at Rs 15
3- I had placed two Sell Orders of both Options in which one was cancelled by Zerodha Securities Pvt Ltd WITHOUT MY CONSENT which is illegal. Why both contracts were not cancelled and only in which one Put Option I was going to get PROFIT was cancelled by Zerodha Risk Management Team.
4- Bank Nifty 24300/Put Option (24/08/2017) was cancelled (Exchange Order No 1400000014252623) by Risk Management Team of Zerodha Securities Pvt Ltd WITHOUT INTIMATION and SQUARED OFF at Rs 0.55 at 15.19 PM Time (Exchange Order No 1400000014979704) and the price went to Rs 25 at 15.24 PM
5- Bank Nifty 24400/Call option (24/08/2017) was sold by me ( Exchange Order No 1400000014238672) at 15.24 PM Time at Rs 0.15 incurring Loss
6- SO IN ONE CALL OPTION I AM GETTING LOSS IS NOT SQUARED OFF BY ZERODHA AND THE OTHER IN WHICH I AM GOING TO GET PROFIT IS SQUARED OFF BY ZERODHA RISK MANAGEMENT TEAM IS A CASE OF PRICE MANIPULATION BECAUSE MAYBE SOMEONE FROM ZERODHA END WANTED MY 24300 PUT OPTION CONTRACT AT Rs 0. 55 and later price went to Rs 25 although I had Placed sell order at Rs 20 which could have got executed but was cancelled by Zerodha Securities Pvt Ltd.
7- As I had Placed sell Order of 24300 Put Option Expiry 24/08/2017 at Rs 20 of 600 Quantity (Rs 20*600=Rs 12000) which was cancelled by Zerodha due to which I had to face Loss of Rs 12000 must be paid back to me by Zerodha Securities Pvt Ltd.
IN CASE OF AUTOMATIC SQUARE OFF AT 15.30 PM THE CLIENT PAYS THE HIGHER STT NOT THE BROKER AND ALL TRADES BEARING PROFIT LOSS ARE BEARED BY CLIENT NOT THE BROKER AND SO THE BROKER SHOULD NOT SQUARE OFF THE POSITION WITHOUT INTIMATION OF CLIENT BEFORE TIME IF THE CLIENT IS HAVING ENOUGH BALANCE IN HIS/HER ACCOUNT. IN MY CASE DUE TO BROKER ZERODHA FAULT MY POSITION WAS SQUARED OFF AT 15.19 PM AT 0.55 PAISA AND THE PRICE WENT TO Rs 25 AT 15.24 PM AND I HAD TO FACE LOSS DUE TO BROKER ZERODHA FAULT AND SO ZERODHA SECURITIES PVT LTD SHOULD PAY ME Rs 12000.
Regards
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Moderator's Note : Personal details deleted.
 
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headstrong007

----- Full-Time ----- Day-Trader
#4
I think that if it was a MIS order then they are right in taking square off action. Don't know if it is right for NRML order.
5- Bank Nifty 24400/Call option (24/08/2017) was sold by me ( Exchange Order No 1400000014238672) at 15.24 PM Time at Rs 0.15 incurring Loss
CE was sold @15:24PM, so I think the order was NRML order, otherwise, it was squared off too.
So, unless Sapna ji placed two different type orders MIS for PE and NRML for CE the fault is from Zerodha.

If there was enough balance to maintain the Risk of exercised STT, brokers must not interfere and selectively square off. We saw many times in last half hour Rs 0.55 options end to Rs 55.
No one can predict the market and square off position selectively (if both position MIS, both must be squared off with the same logic, why they left CE!).

Here possible loss making quantity was only 600, so maximum loss possibility for STT was around 1.20 lakhs. Out of which 90k was already with trading capital. So negative balance risk was only 30k. Even, Rs 50k negative balance very negligible for any F&O trader, they already provided proof of income or wealth. This can't be a valid reason for forced squaring off. Unless the PE order is placed with MIS, fault completely goes to Zerodha RMS team.
I am really sorry for Sapna ji.
 
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#5
I think that if it was a MIS order then they are right in taking square off action. Don't know if it is right for NRML order.
But bhai
After making payment in full, why one will go for MIS order and no leverage is given for buying options.

BTW
Of late it has become a trend among brokers to forced square off, buy call option orders at 15.15/15.20, because of STT risk.
 

headstrong007

----- Full-Time ----- Day-Trader
#6
Recently many discounts brokers imposing various trader unfriendly rules every now and then.
I stopped trading with SAMCO after recently they disabled the NRML option for trading with Bank Nifty OPTIONS for whole expiry day. There was no chance to open a trade in the last 15min. Even forced square off @3:15 is like trading with a handicapped manner for any good trader. Only inefficient RMS team can impose such easy solutions for them, which can be very irritating for most of the traders.

May be some discount brokers got more clients than they can handle... so they are overconfident.. bending the rules every now and then...they don't care if someone wants to leave. But this mentality is not good for business in the long run. IMO.
 

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