Complaint against ZERODHA ?

[sibu3168]

Hi bethukrupa,

Infact your HDFCBANK JUL13 500 CE call option is deep in the money and HDFC bank(spot) is trading around 683/-(i.e. very near to the strike price of 700/-). Rightnow, your loss is minimum and you can wait for the expiry date. But if you still feel nervous, then you can do one thing. Now, HDFC bank is trading around 683/- & HDFC BANK future is trading around 684. So simply call Zerodha and sell one lot of HDFCBANK fut. of current month. Since you are already long in HDFCBANK 500 CE, so you should not have to pay extramargin. You have to pay only MTM loss, i.e. 6500/- (500 X 13). Wait till the expiry and let them to close automatically. In that way your maximum loss will be around 7500/-. If you want to close your position, then try to convince Zerodha in this manner. Otherwise, wait till expiry.
My advise is since it is a wrong trade, close this position as soon as possible even by taking some loss (below 8000/-). It will give you a peace of mind. Don't trade till expiry and come afresh after that day to trade.

With Best Wishes.

 

[ryan4ucar]

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.

Hi Bethi
Looking at this its clear you dont have much idea about futures and options trading.
Zerodha or any other other broker cant make any money out of your mistake unless the trade din take place in real.
Its sad no trader or zerodha is advising you to sell a future lot in hdfc bank to protect the option as you seem so distressed about a potential loss.

On monday when market open sell a lot of July futures prtect yourself and dont play with fire again. Stock markets is not for kids who come crying back after being stung.

 

[TraderRavi]

I never hear about zerodha before..
Is it a broker too??

may be a real estate broker.............

 

[timepass]

I never hear about zerodha before..
Is it a broker too??

may be a real estate broker.............

I am broke, Zerodha is even broker than me

 

[arcus]

http://www.nseindia.com/live_market...t=OPTSTK&date=-&segmentLink=17&segmentLink=17

The OI for the Option chain for 500 CE shows 500. I guess that is yours

Anyway, try to sell a futures contract to hedge the long option position.

 

[pravkshp]

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.

Looks like there's nothing much you can achieve by giving a complaint against Zerodha on what looks like a punching mistake on your part.

If the RMS limits are in place on that particular day there is no way your order could have been been executed without sufficient balance in your trading account.

The Historical data of HDFCBANK500CEJUL2013 on NSE website indicates a trade on 12-7-13 @ 200.60 which looks like your trade and there is no open interest at that strike rate for the past 3 months and later too. HDFCBANK's historical trading data shows its closing price as 695.75 on that day.

Now here's the scenario, the option writer from whom you have purchased your call option has received the premium of one Lakh Rupees(let us leave aside brokerage and other charges out of this equation for the time being)
HDFCBANK has closed today @ 661. If it stays the same tomorrow at the end of the day, you have the option to exercise your long call since it is In The Money and you will receive 661-500 = 161*500 which is Rs.80500 and your loss will be Rs.19500 plus brokerage, STT(which will be huge) and other charges. The option seller will make an equivalent amount of profit at your expense on expiry.

So it seems your fortunes are now tied up with HDFCBANK's stock movement and you might escape from the loss if and only if HDFCBANK closes above 701 tomorrow.

 

[hermawati]

zerodha is a broker in india, is it right???
it's not famous broker i think...
very new in forex..

 

[sibu3168]

Hi bethukrupa,

Have you sold a HDFCBANK future on Monday/Tuesday. Look I told you on Monday around 11 AM to sell one lot (post #11). At that moment your maximum loss was below 7000/-. If you wait for today, now your loss was around ((700-654)*500) i.e. 23000/-. Boss, in this market, there is no place for sentiment.

Everybody in this market, at some point of time make some mistake. But the smart ones recognise it quickly and take precautionary steps immediately. One thing I surprised is how you paunched that order. Since that option was completely illequid and your position was the only open interest in that sereies with no buyer and no seller in that series. I don't find any logic to keep that series (i.e. HDFCBANK 500 CE) in your market watch screen. In the entire case I don't find Zerodha's fault. It is your fault. But if your margin was way below 100000/-, then I have to rethink about Zerodha's risk management procedure and even might think to transfer my fund to some other brokers.
So I request you to tell me what was the exact account balance (including the value of pledged share if any) at the time of execution of that order.

In future, be careful. Even a single wrong decision can entirely wipe out your capital.

Don't worry be happy and look forward to the future with positive mindset.

With Best Wishes

 

[TraderRavi]

Hi bethukrupa,

Infact your HDFCBANK JUL13 500 CE call option is deep in the money and HDFC bank(spot) is trading around 683/-(i.e. very near to the strike price of 700/-). Rightnow, your loss is minimum and you can wait for the expiry date. But if you still feel nervous, then you can do one thing. Now, HDFC bank is trading around 683/- & HDFC BANK future is trading around 684. So simply call Zerodha and sell one lot of HDFCBANK fut. of current month. Since you are already long in HDFCBANK 500 CE, so you should not have to pay extramargin. You have to pay only MTM loss, i.e. 6500/- (500 X 13). Wait till the expiry and let them to close automatically. In that way your maximum loss will be around 7500/-. If you want to close your position, then try to convince Zerodha in this manner. Otherwise, wait till expiry.
My advise is since it is a wrong trade, close this position as soon as possible even by taking some loss (below 8000/-). It will give you a peace of mind. Don't trade till expiry and come afresh after that day to trade.

With Best Wishes.

very good advice by sibu , but he must have the margins for holding futures. anyway big loss of 23000 in one single trade. guys be careful while punching buy/sell orders...........

 

[prasanthg]

Unauthorized Trades of high volume Stocks and Options:

Zerodha has been involved in un-authorized square-off of huge volume of Stock options. Even after found guilty by the arbitration panel as well as appeal panel, Zerodha continues to litigate the matter.

In one case Zerodha liquidated 78000 units of TATAMOTORS stock options within 15 minutes into the business day while the client got entire T+1 day fund the -ve balance. Essentially this caused the client loss of worth 84 Lakhs. The arbitration panels found Zerodha guilty of unauthorized trades and ordered Zerodha to refund the loss, however, Zerodha is not been refunding the money but instead dragging the matter to the court.