Traders, Watch For These Tripfalls!

[newtrader101]

Seeking to list out the various ways traders can get tripped up.

 

[timepass]

Seeking to list out the various ways traders can get tripped up.

Great topic.

Are you referring to equities / NFO only or other investments too ?

Generally, all the vendors are the best of humanity for onboarding and investment, but redemption and complaint management is where the cheap ones fail.

 

[newtrader101]

Great topic.

Are you referring to equities / NFO only or other investments too ?

Generally, all the vendors are the best of humanity for onboarding and investment, but redemption and complaint management is where the cheap ones fail.

Meaning discount brokers TP?
We could cover all sections, for instance when I started trading I didn't know that short positions should not be kept overnight and lost 18k in on e trade. Nobody's mistake but mine.

 

[newtrader101]

All are welcome to give their observations/inputs.

 

[newtrader101]

What happens if we do not square off an ITM option in profit on expiry day? Some say the cost of the option will be deducted.
Can anyone clarity please.

 

[newtrader101]

What happens if we do not square off an ITM option in profit on expiry day? Some say the cost of the option will be deducted.
Can anyone clarity please.

I had ITM option bought @ 200 x 75. At expiry they were in profit of 250/- and I forgot to square off. I was under the impression that exchange would deduct the cost of the option that is 200X75=1500 and I would be in loss. They did not.

 

[newtrader101]

How can brokers trade against you?
This is possible only if you place market orders.

 

[timepass]

How can brokers trade against you?
This is possible only if you place market orders.

What do you mean ? Front running ? But that would be possible even is limit orders.

 

[newtrader101]

What do you mean ? Front running ? But that would be possible even is limit orders.

True. I wasn't aware of it. Chatgpt gave me the first bit of knowledge but left out the frontrunning part.

 

[newtrader101]

I had ITM option bought @ 200 x 75. At expiry they were in profit of 250/- and I forgot to square off. I was under the impression that exchange would deduct the cost of the option that is 200X75=1500 and I would be in loss. They did not.

Correction. 200x75=15000.