Complaint against ZERODHA ?

#1
Hello traders,

I wanted to by HDFCBANK JUL13 700 CE call option, but unfortunately I pressed on HDFCBANK JUL13 500 CE call option and immediately the call option was executed at Rs.200.60 strike price. Immediately I informed to ZERODHA and also I written a mail to them, requesting square off the position. But they are saying that it is not possible to square off the position now due to nobody is there to buy (zero liquidity), have to wait for expiry date. But price is falling down day to day. It will raise huge loss to me.

But, I am having following doubts.
1. At the time of order execution I did not have sufficient amount in my account to buy the same option. Zerodha giving 0% margin for option trading. How order was executed without sufficient amount ?
2. Immediately I requested by phone and mail to square off the position, but instead of squaring off, miss guiding me to wait for expiry date, which leads to huge loss.
3. I think this position could be exercised that day only? but why they are not doing exercise ?

Now, I have all evidences (Mails & Mobile data) regarding the same. I am planning to give complaint against zerodha to SEBI. Please suggest me to ASAP to avoid loss.

Regards,
BETHI KRUPA.
 

ganeshams

Well-Known Member
#2
May be you can give more details like how much money was there in account.
why you were not able to sell as your requesting to broker
what type of order(MIS/Nrml) you placed at the time of buying
did you verified are they really no bidders for your option??
 

bunny

Well-Known Member
#3
You have check with your broker and ledger that how much unutilized margin you had in your account. Further, it is possible that the software may have calculated the margin amount by assuming that your money tied up to intraday positions would be freed up by end of the end. So factually, they may have depended margin money freeing up from your intraday trades. Do let us know in detail.
 

gambler

Well-Known Member
#4
Re: Complaint against rkglobal

Can anybody help me regarding complaint against the broker where & how to complaint my broker is carrying out all the corruptactivities in all departments funds price manipulation tick value manipulation a/c department etc etc i have all the evidences [ screenshots of the said problems they are not replying my mails neither attending phone calls] pl guide me


vikas
Mail at [email protected]
 

Mr.G

Well-Known Member
#5
Hello traders,

I wanted to by HDFCBANK JUL13 700 CE call option, but unfortunately I pressed on HDFCBANK JUL13 500 CE call option and immediately the call option was executed at Rs.200.60 strike price. Immediately I informed to ZERODHA and also I written a mail to them, requesting square off the position. But they are saying that it is not possible to square off the position now due to nobody is there to buy (zero liquidity), have to wait for expiry date. But price is falling down day to day. It will raise huge loss to me.

But, I am having following doubts.
1. At the time of order execution I did not have sufficient amount in my account to buy the same option. Zerodha giving 0% margin for option trading. How order was executed without sufficient amount ?
2. Immediately I requested by phone and mail to square off the position, but instead of squaring off, miss guiding me to wait for expiry date, which leads to huge loss.
3. I think this position could be exercised that day only? but why they are not doing exercise ?

Now, I have all evidences (Mails & Mobile data) regarding the same. I am planning to give complaint against zerodha to SEBI. Please suggest me to ASAP to avoid loss.

Regards,
BETHI KRUPA.
Your holdings can be used as collateral for margin by friend the software calculated that only. I use options to hedge my positions and use my holdings as collateral. And if there is no buyer for the option it is not the brokers fault. And it can be exercised till the time it has value or before expiry.
 

Mr.G

Well-Known Member
#6
Re: Complaint against rkglobal

Can anybody help me regarding complaint against the broker where & how to complaint my broker is carrying out all the corruptactivities in all departments funds price manipulation tick value manipulation a/c department etc etc i have all the evidences [ screenshots of the said problems they are not replying my mails neither attending phone calls] pl guide me


vikas
I would definitely love to hear you story bunny and I can help you. :p
 

sibu3168

Well-Known Member
#7
Hi bethukrupa,

I feel sorry for your state but it seems that the fault is because of your carelessness. Particularly in option trading, one should be very very careful.

Now coming to your problem, you have bought one lot of HDFCBANK JUL13 500 CE call option instead of HDFCBANK JUL13 700 CE call option. Lot size is 500. When your order executed, you have to pay 1,00,000/- (500 X 200) as option premium. Now the question is, when your order executed, at that time what was your account balance? If it is one lakh or above, then your order will be executed immediately. It seems that you have entered a market order in stead of any limit order as HDFCBANK JUL13 700 CE call option is trading around four rupees. In option market, in future, never use market order.
Now suppose your account balance is less than 1,00,000/-, then another question arises, that is, do you pledge any share for margin trading? If the answer is yes, then what is the total balance that means your account balance + the amount you get from your pledged shares. If that amount is greater than or equal to 1,00,000/-, then also your order will be executed. But if in either case your balance is less than 1,00,000/-, then the system should reject your order as in case of option buying 100% of option premium is required.
Again, if there is no buyer, then how can a broker sell your option in the market. Also he can not exercise your option in the market as all options including stock options are now EUROPEAN OPTIONS. So they can be exercised only on expiry day.So you have to wait till expiryday.
In one case you may make a complain against Zerodha, that is if your account balance (balance from pledged share + initial account balance) is less than 1,00,000/-.Otherwise, you have to wait till expiry day.

Hope it will clear all your doubt and for next time be careful while entering your order.

With best wishes
 

hauler

Active Member
#8
your loss is Rs. 9050 as of today excluding brokerage

Hello traders,

I wanted to by HDFCBANK JUL13 700 CE call option, but unfortunately I pressed on HDFCBANK JUL13 500 CE call option and immediately the call option was executed at Rs.200.60 strike price. Immediately I informed to ZERODHA and also I written a mail to them, requesting square off the position. But they are saying that it is not possible to square off the position now due to nobody is there to buy (zero liquidity), have to wait for expiry date. But price is falling down day to day. It will raise huge loss to me.

But, I am having following doubts.
1. At the time of order execution I did not have sufficient amount in my account to buy the same option. Zerodha giving 0% margin for option trading. How order was executed without sufficient amount ?
2. Immediately I requested by phone and mail to square off the position, but instead of squaring off, miss guiding me to wait for expiry date, which leads to huge loss.
3. I think this position could be exercised that day only? but why they are not doing exercise ?

Now, I have all evidences (Mails & Mobile data) regarding the same. I am planning to give complaint against zerodha to SEBI. Please suggest me to ASAP to avoid loss.

Regards,
BETHI KRUPA.
Bethi,
Couple of things which should relax you a bit, first of all whoever's mistake it was, you were lucky that your market order got executed at 200.60. (Imagine if someone had put a sell order at 400).
you might see an outflow of 1lac+ due to the trade, but your real loss is (682.50-700.6) *500.

I understand its a loss, but in hindsight, you can actually thank God for not too dangerous mistake.

Btw, if HDFC bank closes above 700.6 on expiry, your this trade would earn you more money than if you would have paid 2-3 rupees on the 700CE.
 

Creep

Active Member
#9
Hello traders,

I wanted to by HDFCBANK JUL13 700 CE call option, but unfortunately I pressed on HDFCBANK JUL13 500 CE call option and immediately the call option was executed at Rs.200.60 strike price. Immediately I informed to ZERODHA and also I written a mail to them, requesting square off the position. But they are saying that it is not possible to square off the position now due to nobody is there to buy (zero liquidity), have to wait for expiry date. But price is falling down day to day. It will raise huge loss to me.

But, I am having following doubts.
1. At the time of order execution I did not have sufficient amount in my account to buy the same option. Zerodha giving 0% margin for option trading. How order was executed without sufficient amount ?
2. Immediately I requested by phone and mail to square off the position, but instead of squaring off, miss guiding me to wait for expiry date, which leads to huge loss.
3. I think this position could be exercised that day only? but why they are not doing exercise ?

Now, I have all evidences (Mails & Mobile data) regarding the same. I am planning to give complaint against zerodha to SEBI. Please suggest me to ASAP to avoid loss.

Regards,
BETHI KRUPA.
Bethi,

As Hauler put it correctly, you are very lucky that this got executed at 200, markets are a crazy place, it seems timid but it is like a violent sea, every mistake can have crazy implications.

My friend yesterday had made 1lk trading natural gas during the day with around 4lk in his account. One of the trades he had taken during the day he had put a SL selling order over the dealing desk which he forgot to cancel. Natural gas hit circuit yesterday, 60 lots SL , loss of 5lks, account completed wiped off. A small mistake but huge implications.

1. About your case, there is nothing you can complain about, a broker can let you buy for any amount that you wish to trade for. A lot of offline brokers still today first let you buy and then you can transfer money.

2. If there are no buyers in the market, there will be no way to square it off. What if someone had put a limit order to buy at 10, would you be alright if there was a loss of 190 points?

3. All options in India today are European and cannot be exercised until the expiry day.

You need to own up to the mistake and see what best you can do to protect yourself. If you feel that hdfcbank is going down, go short futures and since you have bought calls, it will be a completely hedged position. You can also go buy puts if you want to hedge this. And consider yourself very lucky that you got to buy this at Rs 200 and not Rs 400. Hdfc is at 684 and the way market bounced yesterday looks like you will get your price.
 

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