Zerodha....

[Taurus1]

Re: new cheapest broker is here. Zerodha

This looks interesting as I trade large quantities and currently with RKG.

Is Zerodha an options friendly broker?, i.e. would calculate margin based on max. risk in options strategies like butterflies or iron condors (which are hedged) and not charge the same margin as unhedged/naked positions like RKG and other brokers do?

That would be a true game changer.

Good question, having a net risk margin requirement would be a big advantage.
Lets see their answer tomorrow.

 

[alroyraj]

Re: new cheapest broker is here. Zerodha

This looks interesting as I trade large quantities and currently with RKG.

Is Zerodha an options friendly broker?, i.e. would calculate margin based on max. risk in options strategies like butterflies or iron condors (which are hedged) and not charge the same margin as unhedged/naked positions like RKG and other brokers do?

That would be a true game changer.

Though I do not trade options,I believe they do something of the sort. After all they quote even spread margins. This i believe is what you are enquiring about.

 

[Zerodha]

Re: new cheapest broker is here. Zerodha

hi, what is the margin required for 1 lot nifty option selling....say nifty 6300 CE @ 107...i want to short it...then margin..??

For shorting calls overnight, you need the same margin that you would need to hold one lot of futures overnight.

 

[Zerodha]

Re: new cheapest broker is here. Zerodha

Hi zerodhaonline...is the software you provide (NSE NOW) compatible with a mac?...I know i could run the web based version but i am referring here to the desktop client...cheers

Hi Tradersuraj!
Even I'm a Mac fan, but unfortunately, NSE NOW supports only Windows. Once the demand increases by Mac users, I'm sure they'll release a Mac version.

 

[rahul_h]

Re: new cheapest broker is here. Zerodha

Are you referring to naked options?
Also, I like scaling out of my intraday positions.Does this mean I have to pay Rs.20 for every order I place in attempt to square off the same trade?
Example - I purchase 9 lots of Nifty in one go and paid Rs.20 as brokerage on that order, and on the same day I place 3 sell orders of 3 lots each at various price levels, Does this mean I pay 20+20+20+20 = Rs.80?
I've gone through the entire thread and I understand its Rs.20 per order but still I'd like to hear a confirmation from you.
Thank You

 

[kingfisher3210]

Re: new cheapest broker is here. Zerodha

Are you referring to naked options?
Also, I like scaling out of my intraday positions.Does this mean I have to pay Rs.20 for every order I place in attempt to square off the same trade?
Example - I purchase 9 lots of Nifty in one go and paid Rs.20 as brokerage on that order, and on the same day I place 3 sell orders of 3 lots each at various price levels, Does this mean I pay 20+20+20+20 = Rs.80?
I've gone through the entire thread and I understand its Rs.20 per order but still I'd like to hear a confirmation from you.
Thank You

It is a good question. Many traders i know keep taking profits at regular intervals to beat market uncertainty.

If you are placing sell orders at different prices, i think brokerage will be Rs 20 per order.

 

[Zerodha]

Re: new cheapest broker is here. Zerodha

Hi,
If I place a limit buy or sell order for 500 shares of any company, I find that often it is executed in more than one transaction, often going upto 10+ txs. If so, how will the brokerage charged, Rs 20 for this whole order or 10*20 since it was executed as 10 trades by the exchange over which I will have not control?

Cheers.

To reiterate, at Zerodha we charge you only per order placement, not for order execution. In fact, we don't even charge you if you modify your order. Try it and you'll know...

 

[Zerodha]

Re: new cheapest broker is here. Zerodha

This looks interesting as I trade large quantities and currently with RKG.

Is Zerodha an options friendly broker?, i.e. would calculate margin based on max. risk in options strategies like butterflies or iron condors (which are hedged) and not charge the same margin as unhedged/naked positions like RKG and other brokers do?

That would be a true game changer.

Zerodha is the most Options friendly broker in the country now, and we are proud to say that we have changed the game as far as options trading is concerned. We charge the lowest brokerage and we actually give our clients an opportunity to win.
For hedged options positions, the margins are far lower with Zerodha. The whole idea of a hedge is lower risk, so the margins will be lower.

 

[rookitrader]

Re: new cheapest broker is here. Zerodha

hi all
have applied to zerodha and eagerly looking forward to this whole new concept of zero brokerage.lets see how fast and prompt they are.going by they responded to my queries it looked prompt and sincere.only after getting the account will be able to say more.

P.S: If anybody is unable to get into Online Application page just type in the url http://zerodha.com/main/form
This should solve the problem.got the forms this way itself.
Cheers
Rooki

 

[Zerodha]

Re: new cheapest broker is here. Zerodha

For calendar spreads on options, the margin requirement would be only for 1 leg(for eg: if you buy this month 6200 call and short next month 6200 call, margin blocked would be only for the short call position.).. For butterflies and other such similar strategies, we know the importance of lesser margin being blocked. The NOW platform and many other platforms, don't recognize these strategies, in terms of reduction of margins for completely hedged positions. WE are trying different ways where we can have our traders using these option strategies get the benefit of lesser margin requirement. For intraday positions, margin requirement for option writing strategies is anways only 50% of the span margin... We are trying ways in which we can pass this benefit on to overnight positions for completely hedged positions, which can be recognized by the NOW platform. If we can solve the puzzle, we will be the only online brokers who will be providing the facility... Any feedback and ideas from other option traders will be of help here..