Extremely large quantities, very little margin

Condition 1:
---
Very EXTREMELY bullish about profits.
Scrip: xyz
Buy price: 2500
Qty: 80
Investment: 2,00,000

Sell price: 2512
Stop loss: 2483

Profit Potential: 800
Loss Potential: 1600
---

Condition 2:
---
Very EXTREMELY bullish about profits.
scrip: abc
Buy price: 240
Qty: 31053
Investment: 74,52,720

Sell price: 241
Stop loss: 238

Profit Potential: 31053
Loss Potential: 62106
---

Blind assumptions:
Intraday broking charges are 0.02%
Broker provides exposer of 8 times your investment.
Prices WILL reach the target level. No question about this.
Prices will reach the sell level in max 15mins after placing order.
Buy price is current market price.


These are traded with exposers provided by brokers, suppose 8 times. So own investment is very less comparatively. Rs25000/- and Rs 10,35,085/- respectively against actual order of Rs2,00,000/- and Rs74,52,720/-


Again we are just blindly assuming there WILL be profit and absolutely no loss in these levels. Prices WILL reach this level. So dont debate otherwise.



Now my questions...

1. Are both conditions possible without any loss of order? That is if prices DO go to our buy and sell levels before even touching the stoploss.. will there be any loss of order because there are no more sellers/buyers in quoted buy/sell price points?

2. Will there be a partial execution of order buy/sell qty?

3. What if buy qty is traded but there are no buyers in our selling price, after partial execution? Will this make the trade come to a stop still until someone else decides to sell at a price point lower then ours?

3. Do we have to select the order to "Immediate or Cancel" as to not carry forward the order beyond a certain timeline?

4. Do we select certain "Disclosed qty" as to not create some kind of uncalled violity? If so what qty?

5. Will this be seen as an acquisition of a company, even if for 15mins? Is this even allowed!? :rofl:

6. How can we find average volume traded in a given timeline. And does the volume indicate buy+sell qty or only one way?


Disclaimer: I am a newbie to the whole trading business and these are just some very very wild thoughts. I neither have the funds nor knowledge.. not even guts to do something like this. I havent even traded ONCE, just doing some paper trading with certain percent of success.
Just like to know, if this is possible then how!

Hi atulaw,
to start with your risk/reward is not in good shape. your loss potential is double your profit. check it out.

Hello Rajesh,

Posted this in other thread
Nonetheless, if we just assume these figures as absolute... is doing something like this even possible?

Both Quantities Mentioned....For Both Trades......Will Result In Guaranteed Loss....
You Guys Have No Idea.....What Big Players Do In The Market....

SavantGarde

Yes, perhaps you are right... perhaps it is a guaranteed loss. I am in no position to say otherwise

But just to enlighten us, what DO the big players do?

Can you just entertain me with those questions nonetheless? Forget the quoted prices for now, lets just talk about the volumes... What exactly will happen if I try to buy/sell 74 lac worth of shares using a regular broker such as angel broking or india infoline? Would I be even allowed to do so? Is there an upper limit to where normal people (read: non-institutional) invest such an amount for one scrip within a span of 15mins? Would the sirens go off and fbi/cia/raw/pita crash in from my windows? What if I have a legimate record of holding such an amount in white?
What can stop me from investing my legal 74lac on a single scrip for a time span of 15 mins?


Disclaimer repeated: Right now I dont even have enough money to afford a second hand maruti 800
Just wondering, thats all... no harm done. (Except for wasted time/bandwidth I guess)

There Is Enough Written About The Way Big Players Operate....Suggest You Find The Those Comments & Read Through....The Problem Will Arise When You Want To SELL...It Has Nothing To Do With Scenarios Presented By Your Fertile Imagination......

Happy & Safer Trading

SavantGarde

buy qty = 24000
disclosed qty= 100

even then a problem? how can others see my buy qty if i disclose less

I think, disclosed qty can't be less then 10% of whole order.

Instead Of Trying Look Into The Fallacy of The Strategy....Suggest Put Your Trades In The Quantities Mentioned & Try To Book Profit As Illustrated In The Post.....If It Was Possible All The Arbitrageurs Would Have Changed Strategy & They Could All Go Home..With Bags Of Profit Everyday

10% Disclose Quantity Is Correct...Moreover Undisclosed & S/Ls Are Also Visible To Those Who Want To See...(Don't Ask Details Of How It Is Possible)

SavantGarde

aab itney Q utheyga to dhanda kaise ho? :rofl: