Query of the Day
Traders,
Query of the day or QOD as we call in our office is questions asked to every Zite on things related to capital markets to make learning a continuous exercise. We will be sharing the same on this blog with the answers in the Q&A section below to benefit you all.
Zite = Zerodha + ite = Every person working at Zerodha
Happy Learning
Nithin Kamath
Founder & CEO @ Zerodha
Hi, i have a query that i had transferred amount 20000 in my account as equity trade on 1 october 2024, they debited 13460.75 as funds transferred back as part if quarterly settlement with ref. no. ce24644309425f6e91df82. I want to know what exactly it is and how i can get this debited amount again.
Hi Alpana, quarterly settlement process is when any unused funds in your account are transferred back to your primary bank account. We had also put up a bulletin informing the same. The amount will be credited to your linked bank account; you can add the funds back to continue your investments and trades.
Can I please have all the email-id’s of the emails you send to your customers? So that i can filter them in my emails and not get scamed otherwise.
Listed here.
Can you please add the facility to see the stock selling history along with purchase history in ‘View breakdown’?
Hi,
BSE has recently introduced weekly option contracts in IN50 but Zerodha does not support bse weekly expiry option. If we see BSE IN50 derivative chain then there is a lot of liquidity coming in place.
Does bse weekly option contract is coming in Zerodha soon or will have to wait a long for this?
Dear Zerodha Users,
Are you facing issues with HDFC Bank Details in Kite Dashboard and Console Reports after Stock Split?
I am facing serious issues and just raised a ticket. My investment amount has been halved by Zerodha team and number of stocks showing in dashboard is also wrong. Please check your dashboard again to spot this error.
I invested approx Rs. 55000, but now the investment amount is showing as Rs. 33000, which is a blunder on part of Zerodha. I have sent them all trade details and hoping that they will solve the issue soon so that we can trade correctly on Monday.
Just to bring this issue to your notice.
Thanks!
Rakesh
The split shares were credited to your demat account on Saturday. These will be visible on the platform from tomorrow.
any zerodha tutorial about rollover
Hey trader,
You can refer to this support article. If you have further questions you can create a ticket in the same article.
This article should help.
does zerodha has rollover feature .upstok not giving rollover.
Dear Zerodha Team,
I believe a lot of people like me would like to create a number of buy and sell orders for stocks we trade. We can always do it manually everyday, but then, this is painstaking. If there is a facility to upload a file in Zerodha (Kite) platform to create a series of order, that would have been very very beneficial. Going one step forward, if these orders (if not executed and/or not withdrawn by the user) could remain in the system for the following days, it would be even better.
Currently these features are not available in Kite. Can you please advise whether we can expect these in subsequent release and if so, by when. At least, the order upload facility would add another nice feather to Zerodha’s cap.
Thanks in advance.
Warmest Regards
Sanjoy
Hi Fellow Traders,
I have a query related to mutual funds and exit load. When operating on a SIP module we set a duration and pay monthly thus the day of 1st SIP payment becomes date for the exit load calculation. Eg. I start on 1st Jan, 2017 for a duration of 1 year then exiting the MF before 1st Jan, 2018 will make me pay the exit load.
What will be the case if I made a lump sum payment on 1st Jan, 2017 and then every alternate month like March, May and so on (same stock), what will be considered as the exit load date? How would it work?
I am new to zerodha. Pl help me where can I find capital gains section. short term and speculation gains column.
You can check out the Tax PnL on Q.
Thks for your reply. What is your turn over charges?
Check out all the charges here.
I want to add another bank in my account to transfer funds
pls clarify
Explained here.
I got bonus for a stock which I hold. Later on I sold half of my holding. In my holding price of the stock did not adjust and it is showing zero as purchase price. Price should get averaged according to bonus ratio so that profit and loss should be correctly reflected. Or else manually correction should be maid available.
Iam currently using KITE. People say Pi is offline and is better. Can i use both the platforms with my trading ID.Which is the better platform Kite or Pi ?
while buying PC Jewellers in Call Option the entry is rejected with the reasons: PC Jewellers is in ban period in intraday trade. Will you please clarify the reason in details.
people usually say,the liqudity in nifty is highest in indian stock market,but have look at volume traded,its tells the story otherwise,can any one please clarify
nifty april future volume traded approx 79 lakhs
sbin april future volume traded approx 42 crores
My zerodha client id is forgotten plz help to know me
Dear sir,
is there any facility for zerodha clients to have access to lower timeframe data like 1 min, 2 min 5 min data etc through pi or nest trader or any other application from zerodha? We can use such data in charts. But can we access the same data as it is so that we can do some analysis on our own? On nseindia.com, we can only access End of Day data as long into the past as we want, but not smaller intervals of intraday.
You can open the chart of the desired timeframe on Pi, right-click and select ‘Write to Excel’.
Thank you Matti ji. It worked. In Pi, we can have intraday charts for 120 calendar days. In case if we want to look at intra-day data for a longer period, is there any other solution? Or is buying from data vendors the only option?
Hi Nitin
I want to know can we rollover our positions in Options contract( not for futures contract) .
If yes, then how it is done in zerodha and what are the charges.
Yes, you can. Rollover is essentially just entering the next month contract and exit the current month contract. Normal brokerage charges of Rs. 20 per order will apply.
Dear Nithin,
Its really feels good to experience the wonderful and sensible feature you guys had come up with and i do appreciate the team from bottom of my heart.
Here is my suggestion,
Please think about building a feature that would allows a user to Inter-Transfer of Funds between Equity Account and Commodity Account.
Thank You.
Hi Sir,
I have few queries , Since I am new for trading , if i buy a stock on friday and it is in T1 on Monday , so if i add extra stock when it is in T1 ,will there be any charges levied . Can you please mail me the interest % for all the tradings happening in zerodha . If i do buy/sell in single day how much charges are been taken , is it 13rs ???
Hey Ranjith, no charges for adding stock on T1. You can check out all the charges here.
I bought pricol shares last year and after some months due to some amalgamation i am not able to sell them.
though the market price shows as 136/- it is still showing as 91/- in my account.
how to sell these shares at actual market price ?
Best write to [email protected] with this Siva.
i am a zerodha client.in oct.i used pi some days so zerodha deducted rs 590 but latter i unsubscribed in few days latter.since then till now app section is showing i am not connected with any app.but today rs 590 deducted by zerodha.so this rs 590 should be added in my account.date of deduction–21.12.2017
Can you write to [email protected] with this?
[email protected] solved my problem on 27.12.2017.
sir ,
1) my question is i have a demat acc lets say i buy a stock monday and sell it after a week so as you said 15% direct tax applicable on profit by govt so is STT IS THAT TAX or i have to inform about this gain to govt tax dept.how govt take this 15% ?
2) if we earn 1000 rs on that we also pay 15%?
Can we get the buying date on our holdings, to know whether they are long term or short term. In ICICIdirect it shown.
This is available on Q, the backoffice.
Dear Sir,
I never expected such stock answer from you.I have already placed order for 53 Infosys shares on q zerodha.I know the procedure.
You have not answered my querry.
Why 53 shares are still appearing in my holding eventhough my order accepted by you 3 days back.I have not received TRS also.
Please do not send me printed answer.
Regards,
Vijay Bhide
Dear Sir,
I offered 53 shares of Infosys on line through q zerodha 3 days back and yet shares are still appearing in my holdings.I also have not yet received TRS.I am really worried now.As it is not required to send you Tender form,I have not sent you scanned copy of the same.If required I shall send it.
Your support team sent follwing stock answer.I never expected such type of answer from Zerodha
Dear VIJAY BALWANT BHIDE,
Thank you for writing to Zerodha Support.
The buyback for Wipro/Infosys have been announced from November 29th and 30th respectively. Please note that if you wish to take part in this buyback, you’ll have to do so by placing a buyback order on Q.
The appropriate menu for you to place the order on Q will be available from the respective dates. Please note that no email confirmation will be accepted for buybacks, it’s compulsory for you to place the order on Q.
Additional info: We will charge Rs.20+GST for each buyback order on Q. The acceptance from the user to pay these charges will be taken on Q.
Tender form not required.
sir, I bought 400 shares of “shivalik bimetal controls” 2 weeks back. It’s average buy price was not adjusted, after crediting of 1:1 bonus shares last one week. When will the problem solved?
Best if you write to [email protected].
can we trade in intraday without margin money by using MIS?
Sridhar, by default you get leverage in MIS orders. If you don’t wish to use leverage, then you can use CNC orders even for intraday.
I am using ‘Kite’ web version. I am having problem with monitoring chart of the stocks I am holding in the portfolio.
The ‘Holdings’ page lists stock holdings from where selling / additional buying can be initiated. However this page does not have ‘chart’ button. To see the chart (of the stock I am holding), I need to add the stock in the ‘Marketwatch’ which is time consuming and inconvenient. As the marketwatch has limited space (for 100 entries), the above ends in consuming valuable space required for monitoring new investment/trade opportunities. I am unnecessarily required to add & delete the same stocks in the marketwatch which I am already holding. This is tremendous loss of time & efforts.
Hence request you to provide ‘chart’ button on the holding page for ‘kite’ web version.
I am surprised to see that this facility is already provided in the mobile version but not available in the web version!
I am sure that the above upgrade will make ‘kite’ web version more efficient and smart.
Hey Nagendra. Thank you for the feedback. This is part of the upcoming upgrade to Kite (Kite 3.0)
Hey Nagendra. Thank you for the feedback. This is part of the upcoming upgrade to Kite (Kite 3.0).
I have sep futures in which i am inchrring some losses. I want to rollover to october future. Do i need to first book loss in September future and buy october future or can i just pay the difference in price of September future and oct future and rollover. Help me please and suggest how to do that.
Yes, you have to exit september and reenter october.
Dear Nithin,
My client ID is ZD1569, and I am trading with my own sources in Zerodha with Mob.Apps Zerodha Kite, but repeatedly your people deducting extra charges for call & trade charges in every trade. What is this charges imposing on me and how it applies with me, without any service providing the client???
In my case only your brokerage charges was applicable, but your people doing nonsense job..
This charge is applicable if our dealer terminal places order on your behalf. This is applicable when you call n trade or if you let your MIS positions to square off from our side.
1) How important “Total traded value” in a FY for calculating Income Tax fr a whole time trader ?
2) Where else i can see the P/L, the squared off cash Equity part where T+2 has passed many days ago, provided normal P/L segment not showing it !
1. Check this module: https://zerodha.com/varsity/module/markets-and-taxation/
2. Login to q.zerodha.com and under reports look at P&L or Tax P&L
DN4248
Futures and Options are derivatives of spot price basically meaning that they are dependant and derived from cash market spot price.
Do spot price in any way depend on Derivatives? Also why is is that during expiry day(s) (monthly or weekly Bank nifty options expiry) the spot price becomes so volatile? For instance during the banknifty weekly option expiry many a times these is a 3 pm sudden move. Why does it happen?
Yeah, even though f&O are derived from spot, but since trading volumes on F&O are a lot more, they kinda tend to determine the movement of spot (vice versa). During expiry, a lot of rollover of positions take place, hence stocks suddenly become volatile.
Thank Nithin for your explanation. Just another doubt… Why this happens specifically at 3pm?
Dear sir
I have purchased shares on delivery basis yesterday. Upto what time I can square off my positions next day
If you have bought on delivery, you can square off whenever you want.
Hello,
I usually trade in Banknifty Options. Could anyone suggest a good laptop with the necessary configuration ?
Thanks
Venu, any laptop that costs around 20k and over is good enough.
Thanks, Nithin.
Hi sir,
TO whom stt charges (after the market hours option sold by nse) have to pay?
to zerodha ? or nse? if client did not pay the amount who will get loss?
Broker collects it from trader and pays to exchange who in turn pays the government. Client has to pay, onus on the broker is to collect from client.
Dear Nithin,
My client ID is RL0453, and I am trading with my own sources in Zerodha, but repeatedly your people deducting extra charges for call & trade charges in every trade. What is this charges imposing on me and how it applies with me, without any service providing the client???
In my case only your brokerage charges was applicable, but your people doing nonsense job..
Lokendra, if orders are placing through our dealer terminals – either through call n trade or if MIS positions squared off, these charges are applicable. IF you are charged for something else, can you email [email protected]
I faced problem in zerodha in stock holding. I mail 16 times to support team around 3 months ago. They gave me a ticket no. But the problem is not solved. Every time I mailed them they told me that it will be solved soon. One day they told me that problem has been solved. But it was wrong. I informed them. They want the screen shot. I mailed them after that same reply soon it will be solved. One day being frustrated I post the problem in zerodha z-connect forum. Then next day one of the executive calls me and want to know what happen. I told him. After hearing everything he assured me to solve the problem within 3 working days and a new ticket number were given to me. And a new drama started. Now it’s around 10 days the problem still remain and when I mail then against my new ticket number they don’t reply. Its my earnest request to you people please give some value to your customers. Give some time for hearing existing customer’s problem rather than attracting new customers.
Having this checked Subhajit.
Till No update from support team.I mailed them just for status update.But never got a reply.Worst service ever I seen in my life.
Hi,
I want to know why Zerodha does not provide T + 5 trading in cash trading segment when it is permitted by SEBI itself and exchanges are allowing it.
e.g. ICICI gives T+5 margin trading in equity cash in NSE and it is T+90 in BSE.
When we can expect same to be available in Zerodha.
Regards,
Jay Pandya.
Jay after the latest margin trading circular, the T+90 product is removed by everyone. T+5 is something we intend to provide soon.
Do you charge something before investing in mutual fund?
Check this post.
Dear Nithin,
I have faced a technical problem at Pi BO order trading and mailed this to zerodha support team 31/5/2017. Ticket number(#351994) has been created at same day but till now the issue had not been resolved nor any written clarification had been given till now. So I am expecting your valuable attention.
Regards,
Bidhan Haldar
RB1242
I am eagerly waiting for Pi application on iOS platform. Currently doing through VMWare where though it works fine but working with multiple screens is quite a pain!!! Any tentative date for that please as waiting for more than 2 yrs now?
Raj, Pi is built on microsoft dotnet, don’t think it will be possible to make it work on the macs.
Hi, Just had a query as to when will Zerodha be available for IPO’s as well??
Check this link, explains how you can apply using your Zerodha DP ID.
Why i write this is to highlight awkward situation/data i have seen in Tata global share on 27/3/2017. I am attaching image of option chain of Tata global for today.
i am observing that share cmp is 148, but Option 170 CE and 175 CE are trading very much high, first is on 1.9 and second is on 3.00 with only 3 days left to expiry.
I am surprised to see such actions. I am unable to locate relation with any theory. thats why i write to expert like you.
Please elaborate on such actions in your varsity chapters. this would give you unique situation to justify actions.
I have little doubt about Adhoc margin.
Please make me clear.
NBCC issued bonus shares with ex bonus date as 17/2/2017 . I just want to know , by when bonus shares will reflect in my holdings.
Hmm.. this can sometime take upto 3 weeks. Depends on the company giving out bonus and the registrars they use.
Dear Sir,
I have little doubt over call option expiry. Currently i am holding HEROMOTO3000 Jan call options and underlying is well above strike price. currently premium is trading at around Rs 120 (purchase cost is 79).
Now problem is that enough buyers are not available.
What amount i will get if hold till expiry? Kindly help
Thanks.
On the expiry day, stockprice-3000 is what you will get back. Until then, you could probably place a limit order and hope to get it executed.
I have Pricol shares in my account before amalgamation. I want to know when I will see it back in my account
There’s no intimation yet from the Exchanges.
Hi, any idea when Pricol Ltd’s shares will be traded again? Thankyou
Can’t seem to find any info yet.
Hi Nithin,
Through rollover one comes to know where most of the market participants(MP) are expecting the market to trade-down or up- in the future. So how do I come to know where the rollover is maximum-Long or short. Most MP rolling over long position may move the market in the upward direction and maximum rollover of short contract may move the market down in the near future. Where do I get to see the no of long and short rollover contract individually? Or is there any way to find…please help me with the source. any website or is there any way to calculate the difference between short and long contract rollover at the end of the month.
Hi
I would like to know why Pricol Ltd’s shares are not showing up in my holdings in Kite… Is the trading suspended for some reason?
Quoting from NSE’s website “Members of the Exchange are hereby informed that the trading in Equity Shares of Pricol Limited shall be suspended w.e.f. December 05, 2016 (i.e. closing hours of trading on December 02, 2016) on account of Scheme of Amalgamation of Pricol Limited with Pricol Pune Limited”
https://nseindia.com/corporates/corpInfo/equities/AnnouncementDetail.jsp?symbol=PRICOL&desc=Suspension+of+Trading&tstamp=241120161940&
Thankyou
How do i rollover my future contract in zerodha ??
Exit this month contract, and take a new position in the next one.
How much amount required to take intraday position of 1 lot future of Idea cellular ? Also tell amount required if I hold the position till contract expiry.
Around 20k for intraday and 50k for overnight. Check this: https://zerodha.com/margin-calculator/Futures/
BSE is opening an international exchange in Ghandhinagar. does that mean we will be able to invest in US stocks through that new exchange.
will zerodha apply for membership to this new exchange?
Since bo.zerodha.com is not accessible from all devises please have a cut off time for your back office team to update q back office and ask them to stick to that cutoff time.
T+2 settlement means Shares would be credited to our Demat account on the 3rd day..may I know the exact cut off time when the shares are trnsfrd from pool account?
If inT+2 settlement if the shares are credited to Demat account on the 3rd day then why is that the bills posted on to our ledger on the “T” itself and the said amount is debited..don’t you think it is unfair on the part of investor whose account is debited even before the cutoff time…??
NO fixed time, but around noon. Exchange debits the money/shares from the counteparty accounts on T+1, and settles it on T+2. That is the settlement cycle, many international markets it is T+1, India might be there in a few years.
Is their a way I can filter the posts eg. Case1: I just to see my posts and its reply.
Case2: I just to see Nitin and Siva’s reply for a particular day…
Just want a filter and sorting facility on this blog..
Currently no, but letting our team know about it.
Hello Sir,
How can I open the nifty index chart in pi.
I know how to open the call & put option chart for nifty, but I cant open the nifty index chart in pi.
Pl suggest
Check invoking an index from this post
Hi Nitin,
I bought ITC shares the day after the bonus was announced on 20-5-2016 in the hope that I’ll get the bonus. But, clearly I anticipated it wrong. As of today 2-7-2016 I have not got any bonus shares. Is it that the bonus was given to shareholders who were on the books as on 31-3-2016 or any other date?
Could you shed some light on this.
Thanks,
Siddhant
Yep, you are right. Check this link, it is very similar to dividends or any other corporate action.
Hello Sir,
tomorrow is last day for june option, if tomorrow I will buy an july option then whether it will sqaure off tomorrow or I can carry it for next month.
U can carry it for next month.
Thanks Sir
Hi sir,
how much % charges on withdraw money from trading account
Hi Naushad,
There are no charges on withdrawals.
No charges for now.
How can I add USDINR on NSE & USDINR on MCX-SX pair in marketwatch
Just select MCX-SX CDS/NSE CDS and FUTCUR from the drop downs and add hit enter to add the contracts to your marketwatch.
How to do it in kite??
MCX-SX isn’t available on Kite.
Why it is not available in Kite.Can you guys Fix it
Dear Nithin ,
Trade code : ds4353
I wish to know how to pay Demat Account Annual Maintenance Charges AMC (Yearly Fee)
Thanking you ,
Dr. Vijay
Dr, if you can keep the money in the trading account, that is enough. We will debit it from there. If this is for IL&FS demat opened with us, send an email to [email protected] asking us to debit the AMC, if it is Zerodha demat, we will debit it on March 31st.
Thanks Nithin for the quick reply ,
I have an demat account with IL & FS opened through Zerodha.
I did not know that you had a zerodha demat account.
Is there any advantage of zerodha demat account over il& fs demat account
is it possible to change from il & fs demat account to zerodha demat account
Thanks in advance ,
Dr. Vijay
Mid last year we started with our DP services. If you visit Q.zerodhacom and profile link on it. You can see a pre-filled zerodha demat form. Fill it, sign it and send it to us (along with this ILFS closure letter). The AMC is Rs 100 lesser, and also with Zerodha demat you can currently do MF investments.
Can any one elaborate the meaning of this line published in one stock recommended site “Voltas is a sell with a stop loss of Rs 237 for target of Rs 223”.
That means you can short the stock (I am guessing in futures). Once shorted, if it goes to 223 buy back and book profit. If it goes to 237, book a loss and exit.
It is still confusing as I am new in stock market.Can you explain it with one example?Any way you people r really great for your prompt answer.
Can’t really think of any other way to explain. Suggest you to start learning about markets here: http://zerodha.com/varsity/
There are 2 ways you can make money in the markets:
1) Buy low, sell high
2) Sell high, buy low
If you know that the price of a particular stock is going to drop, how can you benefit out of it? You sell the stock first and then when the price drops, you buy it back and close your position, thereby making a gain.
The stop loss price is the maximum risk that one is willing to take on a position. So if you’re buying a stock at Rs.100 and the maximum risk you’re willing to take on the downside is Rs.8, then your stop loss would be 92 (100-8) ie you’d close the position when the stock falls to 92, making a net loss of Rs.8/-
In your statement “Voltas is a sell with a stop loss of Rs 237 for target of Rs 223”, the analyst is recommending you to sell Voltas first (because he thinks the price of Voltas is going to drop) and recommends a target of Rs.223 (The price at which you’ll have to buy back what you sold to make a profit) or recommends to close the position at 237 on the higher side (The price at which he’s recommending you to book losses)
Thank u Venu.Its really helpful.
Login id : DD0314
Hello Nithin/Zerodha,
1) Does Zerodha have following feature ?
What is Shares As Margin (SAM)?
Shares As Margin is a facility which allows
you to use your existing shares kept in
demat account,to create limit for investing &
trading in Equity besides Future and Opt
From : ICICI Website
2) What if someone wants SAM but has some other Demat Linked to Zerodha
i.e if someone has trading account at Zerodha but
Demat of say “Sharekhan” is linked to Zerodha.
In such case, is SAM available ?
Pl. Guide
Thanks in Advance
Query asked by one of my Referral
Yes devendra, you can pledge stocks to get margin for trading F&O with us. It is possible only if you have a demat with us, not possible if it is third party.
How to find out if a stock is available for BTST trading ?
We allow BTST on all stocks (except T2T, Z category). Check this post.
Hi Nithin,
“Refresh” button is missing from Zerodha Pulse from some time now, we need to manually refresh to check for any fresh news, can this be corrected please. Thank You
Checking.
Hi Nithin,
The “Reload” button is still not working, I manually refresh, however I did see it a couple of times last evening……….just FYI…
We’ve upgraded our servers which is why there seems to be some trouble with the Reload option. Our tech team is looking into it and will have it resolved ASAP
Hi VenuMadhav, thank you for the response, any time frames please, the issue is still unresolved…. Thank You
Hello Nithin,
It is very annoying to see that you charge me a fee for transferring money from my bank account to trading account which is not the case with any of the other trading accounts that I have used so far in the last 12 years. I have repeatedly asked your people if there are any other charges but was never told about this.
It is unfair to mislead people to become your customers.
Regards,
Krishna
Krishna, we use a third party payment gateway provider for this. What is charged is by them, we just collect and pass the charges. We can’t take this charge on our head because we work at razor thin margins.
pls provide the phone numbers or e-mail id,s of the people ,who are winners of 60 day challenge or traders who are appearing in your site,with their permission,so that we will get to know each other,and make a friendship among Zeroda traders.More over we can exchange ideas,afls,algos for mutual benefits
Hi Nithin,
First of all Thanks for building the P&L reporting feature in q.zerodha, it is really helping me with analysing my expenses. 🙂
Q1> For Demat we have Rs15/- whenever I sell something In am holding in Delivery (T+2).. so
Scenario 1) If I sell 1 Share of IBreal @ 70 from my demat for delivery… I would be charged Rs15 ?
Scenario 2) If 1 sell 100 shares of Ibreal @ 70 from my demat for delivery… I would be still charged Rs15?
Q2> If in a single day I am selling multiple scripts from my demat for delivery, would I be charged Rs15/ script
or
Rs15/- for the whole contract note?
Thanks,
Mahesh Patil
Q1. 1. Yes
2. Yes
Q2. Rs 15 per scrip, so if you sell Indiabulls and infosys, immaterial of how many shares sold from your demat, it would be Rs 15+ Rs 15
Thanks Nithin 🙂
I have asked few queries In this forum (z-connect) but now I am unable to see where I have posted them?? in my profile/ login there is no means to redirect a user to see his queries and thus the replies??
Amit, Check out our initiative tradingQ&A. On Zconnect there is no option to go back to track where you have posted, the only way would be that for every post when replied, you would have gotten an email. I can see your queries on the two: 1 & 2
Hi Nithin,
QQ around BTST
When there is a settlement holiday, will our NEST terminal/web app by default block us from selling as CNC as it wont appear neither in T1 nor in Demat?
I have bought APPL on 31st.. today i.e. 3rd march I cannot see it in my T1 or demat holdings… I think it is because of settlement clubbing?
So I do not need to worry of short stock when I do BTST even when there are settlement holidays as Zerodha will take care by not displaying the stock neither in my T1 nor demat?
Thanks in Advance as always
Mahesh
31st and 1st is a little crazy, because it is the only time in the year when there are 2 settlement holidays in a row, even when the markets are open. But generally we will show stocks in your T1 holding even before delivery, so if you sell from T1 there is a risk of short delivery.
There should be facility to put “target and stop loss order” in one order,if one gets executed other should get cancelled.
We’re working on this. Should be out very soon for all our clients.
Hi Nithin,
How can i bid from my zerodha account in a follow on public offer, example the L&T housing finance which happened on Friday, which i wanted to but since i did not knew how to i didn’t?
Thanks,
Mahesh
Mahesh,
Presently, it will not be possible for you to bid on your own, if you can send us an email to [email protected], we can do it on your behalf. Let us know if you want someone to call back on this.
Do keep me ([email protected]) in cc.
Cheers,
Thanks Nithin
I will email for any future FPOs
Regards,
Mahesh
Hi nithin
I have 50 k in my trading ac. How many time can I trade in intraday in equity market? What I mean is 4X (2lac) or 10X (5lac) ?
Sharan,
https://zerodha.com/margin-calculator/Equity/ , We provide between 3 times to 20 times for intraday. Between 3 to 10 times if you are using product type as MIS while placing the order and between 6 to 20 times if you use the product type as Cover order. You can read about cover order here.
Cheers,
Hello I am new user.While reading on zconnect,I remember reading about order ladder(.i.e. offers and bids ladder).Now on nest I couldn’t find it.Can you tell me how to get it?
Sanjay,
There were a few issues with this, we have disabled it on NEST for now.
Is there a limit on the amount of shares of a company that can be bought by an individual?
My friend told me that in each exchange only 10% of the volume of the shares of the company (in that exchange) can be bought by an individual.
I read in some sites that an individual investor can buy only upto 5% of the total shares of that company.
kindly let me know the yearly Demat account charges at zerodha , i believe ILFS maintains the account on ur behalf.
thanks
Puneet, the AMC is Rs400/year, Rs 200 paid upfront, and Rs 200 after that at the end of every 6 months.
Timings of SGXNIFTY ? …while watching business channels it is trading in the night?
Primary session is between 6:30 am to 3:40 am IST, post that there is a T1 session
4.30 pm to 11.30 pm
Nithin/Team,
Please let me know where to get the historic advance/decline numbers with up/down volumes and new high/low list. Could not find this on NSE website.
Also I read about new free charting tool similar to amibroker in the amibroker queries. When can we expect the tool.
Thanks
Veena
Don’t any site where you can see historic advance/decline numbers, let me check, and let you know.
Our new platform might take a couple of months more..
Yahoo finance has the numbers for 1 day but not historic….. Wonder why the NSE website does not have these numbers….
http://www.nseindia.com/content/equities/eq_advdeclines.htm for historical data
thank you … but up and down volume is not available
Dear Nitin,
I searched thread in Z connect regarding Zerodha Back office, but i couldn’t find one…
first suggest you to create a topic line “Back Office Related Queries”.
i’m undergoing a pain every time when i access the Zerodha Back office….that is your back office works only with IE explorer….
which is quite a cumbersome and desperately need a desktop.
where as person like me who really on smart phones (Android) find this as a serious limitation that android phone do not support IE explorer.
is there a real technical limitation or can it be worked such a way that your back office support all other multiple desktop and android browsers?
Hope my other trader Friends would have bought up this issue earlier..i guess.
regards
Venkat
We are also presently working on a new backoffice front end with the works
thanks a lot Nitin Ji
what is multibagger and bluechip stock?
The word multi-bagger is derived from the phrase “bag something” which means to catch something or to win something. So in terms of stocks, it simply means that the stock is really good and it will give you great returns.
The phrase “blue chip” is actually derived from the game of poker, in which traditionally the blue chips were the highest valued chips in the game of poker. A blue chip stock is considered to be among the best stocks in the index or the sector. If you have a blue chip to bet with, you’re still in the game. 🙂
TOTAL CONFUSION IN YOUR SITE NOW,PLS ARRANGE ,ALL QUERIES UNDER ONE PAGE,TOTAL CODING OF STRATEGIES UNDER ONE PAGE,ARTICLES ON DIFFERENT PAGES,SITE IS A DUSTBIN NOW
SORRY
Hey Currency,
There is a very famous quote, “Any change, even a change for the better, is always accompanied by drawbacks and discomforts” , the idea behind the new look is to slowly move away from category to search and have a very powerful search engine on the site. Personally I think the entire blog is better categorized now, have you seen the sitemap section?
how many days it take to transfer amount in trading account?? my client id is RC0339 .
tell me when my cheque i given on friday evening will transfer to my trading account??
Bhavna,
The best way to transfer funds is through the instant payment gateway, it instantly shows up in the trading account.
When you put a cheque it depends on how much time the bank takes for clearing it, the time taken could be more if it is an oustation cheque. But it can take between 2 to 5 days.
hi
please let me know can we short a share and buy it on next day in zerodha.
for example: according to me if infy hare will go down by 100 rs in tomorrow opening ,i wanted to short infy so that i acn buy tomorrow after gap down opening.do u allow such trade?
Abhinav,
If you short a share you would have to buy it back the same day and not possible to carry forward this position to the next day.
You can take a position like this by using futures and not possible using equity shares.
I am watching a last three quarters …when ever a company declares a dividend ,the stock prices will go down ?
i want to know that dividends will be given from the company reserves or market price of the stock…..
and also tell me what are the fundamental to watch whether the company is good position or bad positions ?
please suggest some ratios ….and more over the websites to updates the quartely balance sheets , p&l , cash flow statement
Satish,
Read this interaction I had with one of my staff, should explain you how it works when dividend is announced.
About Fundamental analysis, it is a big diverse subject, can’t really point out to 1 or indicators/ratios to follow. Moneycontrol has most of the info on companies that you are looking for.
Cheers
Hi zerodha, i m new to markets, so i just want to build upon my basics so that i can enter market via zerodha.
kindly answer the below question, though it is novice.
few weeks before i came to know that amitab bachan`s stake value for holding 62794 just dial shares at a price of Rs 10 (6.27 lakhs) has increased to 6 crores…..i do not understand how he bought 1 share for 10 rs when the book value of the company is 60.77rs ?
he should have bought at 60/share rather than 10/share? or he was allotted this subsidized rate bcos he is brand ambassador?
i cant understnd the difference between face vaue ,bookvalue
Deepak,
We will try to run a blog on book and face value,
Don’t really know about this case, but can check and get back.
Any update on this
Hi sir,
1. As mentioned in the top of this blog, is there any update on the OI tool development from zerodha ?
2. In the market watch is there any way to display yesterday high and yday low ?
No Balu, this is presently not available
I am not sure, whether this query of mine belongs to this blog.
But may i know, how much margin is required for selling or writing options , @ Zerodha..
For eg : Nifty DEC 2013 6500 PE @ 400 — lot size 50.
Around Rs 40,000, you can see the margin required yourself by using our SPAN calculator tool,
what is span margin , exposure margin and total margin ?? explain with example ..
if i had amount of 25000 in my trading account .if i short sell 4 lots of nifty call 6000 @100 . so amount will be debited in my account . means total amount increased . so can i use that amount for intraday trading or for carry any other night postion till i sqaure of that short sell position means till i buy 4 lots of 6000 call before expiry????.
how can place positonal orders or overnight order???
what is IOC ??
as it takes 2 days for shares to transfer in demat account.. so can sell shares befor it transfer to demat account?? how??
and demat account required or dnt require for trading overnight position in f and o??
if i buy some shares of amount i had and place a sell order during intrady trading but if the price doesnt reach to that sell prize which i had decide . so will the shares transfer to demat account automatically?? or it will square of at 3;30?? (bought by my own amount means amount i have.).
how to link up backoffice with trading platform??
1. About margins, read this blog.
2. When you short sell options, premium gets credited to your account but a margin is blocked for short selling. So yes, you can use the premium for other positions, but the margin blocked for writing options will be almost like future margins, you can use our SPAN calculator to know the exact amounts.
3. For orders, read this blog.
4. IOC also explained in above blog.
5. Yes you can sell shares before it comes to your demat, read this blog for that.
6. No demat required for trading f&o
7. If it is bought by your amount and using product type as CNC, it will transfer to demat automatically, if you have bought this as product type MIS, gets squared off at 3.20pm.
8. Backoffice is already linked, at the end of everyday all your trades get updated there.
Cheers,
nisha3 Oct 13 2013, 9:09 pm
thanks …
[ Click to thank ]
I have taken Position in Infosys call option 3550 stike price@ 32.5 & also put option 2600 stike [email protected] before the result of infosys …..but after result both are in negative closed.
1) stock price increased but callbuy option value decreased ?
2) It is also happened in the In the money(ITM) & At the money (ATM) contracts like 3150 , 3200,3250 strike prices also?
3)If the futures price increase , call buy will increase and put buy will decrease …why like this happend ?
4)Even if we see the time value to expiry is there ….If we consider OTM contracts do not have intinsic value , but why it happened in ATM & OTM ?
5) TAKING the position in both PUT buy and CALL buy is hedging strategy or NOT?
Satish,
A lot of people would have bought options both calls and puts assuming volatility in the stock and hence pushing the premium prices higher for both.
Yes the stock went up, but not in the same proportion as the premiums and hence after the result the premiums for all call and put options dropped for ITM, ATM and OTM.
Taking buys in both calls and puts with different strikes is not a hedging strategy, it is actually called a long strangle which is a volatility strategy. This strategy will make money only when volatility of the underlying stock goes up above a certain point.
Hope this clarifies.
hence pushing the premium prices higher for both …..I did not clarity on this… I am watching the results for last three quarters….at the time last three quarters if it is the otm contracts at low premium also got huge returns …give one example why like this…..even before the 4days on wards this is happening in the infosys ..stock increasing ,but call buy decrease
Didn’t get your comment Satish, but this time the move on Infy after the results was much lesser than the previous times and hence drop in volatility and hence the drop in premium prices. Usually volatility drop is much higher when a stock goes up to when it crashes.
Why did the premium go down heading into the event? Probably a huge volatility was expected from before but people started feeling otherwise heading into the event especially with the markets so strong.
Thank you so much for sharing such info. I am sending my form for opening a/c for currency.
Happy Trading…!!!
Hello Sir,
I am interested in Currency Trading. Below are my basic queries. Request you to revert so that it will help me to understand it better for starting trading in Currency.
1) Which exchange currency is traded in India?
2) How to trade Currency?
3) What is Currency pair?
4) What is the trading time (start & end)?
5) What is Lot size & min. required margin for that?
6) Which factors to be considered?
7) How & which Global factors need to track?
8) How can we trade in Global currency market & what is trading time for that?
9) Where should i open account for trading in Global currency market?
10) Which Currency is more volatile as well as volume?
Awaiting for your reply.
Thanks in advance.
Regards,
Sandip Chougale.
1. Currency trades on both NSE and MCX-SX
2. To trade currency you need to open a trading account with us, if you have opened one for trading equity that would do provided you have opted for currency trading. If you haven’t, you need to send an segment addition form.
3. While trading currency, it has to be traded against another currency, this is called a pair. For example if you want to trade USD, then if you want to bullish or bearish about it, you need to know against what currency you will feel so. USDINR is a currency pair.
4. In India you can trade between 9am to 5pm.
5. Lot size varies based on what you wish to trade, USDINR is 1000 dollars. Margin required for trading this overnight will be around 5 to 8% of contract size based on volatility.
6. Various factors from CAD, inflation, interest rates, movement of FII money, stock market performance and etc have to be considered. Best way to trade currency is using technical analysis since there are too many factors to worry about.
7. Like above
8. Indians are not allowed to trade on global currency markets.
9. Presently it is illegal to trade currency other than on NSE or MCX-SX
10. USDINR is volatile and has enough liquidity.
Cheers,
Role of an index: Role of an index primarily is to measure performance of the entire market or a sector. Popular index like Nifty helps measure the performance of the entire market on NSE whereas bank nifty helps measure performance of the banking sector. Sensex is a market index on the BSE.
Are there indices for commodity markets as well: Yes
Are they popular: No
Why not? :a. unlike equity markets where an index helps measure performance of a big group of stocks, in commodity markets, the number of active commodities trading is limited to under 20. b. There are futures and options on equity indices which are very popular trading tools, whereas we don’t have them on commodity markets.
How do you add an index/indices on ZT, explain in 3 steps?
CTRL+I short cut to get the INDICES dialog boxRight click and chose show indices select the required indices right click on the same and chose add to dialog bar
What is the difference between an index and indices?
Index is singular Indices is plural
Hi,
I have some doubts regarding naked option writing. If I sell NiftyOCT5950CE @ 200 margin is 27000 my query is
1.Once I write and if it goes against me should I maintain any margin and also is there any chance of auto square off before expiry (if so plz mention level).
2.Should I have money in my account to square off my position.
3.In above case I will be anyhow in profit if nifty on expiry is below 6150, am I correct ?
Thank You 🙂
Chan,
1. Yes once it goes against you, there will be a MTM loss in your account, so you will need to maintain the margin. Usually square offs will happen when your margin drops by over 20% of the required margin.
2. No you would not need extra money to square off an existing position.
3. Yes.
hi Nithin,
I am very new in this field, so can you please explain what does NiftyOCT5950CE @ 200 margin means??
No easy answer to this, this is an option contract. Suggest you to go through the Futures and options module here: https://zerodha.com/varsity/
1. What are the 2 ways in which you can use a stop loss order?
Stop loss order an be used either to enter a position or exit a position.Exiting a position means placing a stop loss order to protect an existing position for reducing risks and exiting with a minimal loss.
Entering a position – means when a client wants to buy above the current market price or sell below the current market price, he could use the stop loss order.
2. What are the 2 types of SL order and give a 1 liner explaining each?
The 2 types of stop loss orders are – stop loss – limit (SL – L) & stop loss – market (SL – M)SL-L – These orders become a limit order once the order has been triggered. Hence this requires the trader to enter the trigger price as well as the stop loss price. Once the trigger price is breached, the order becomes an active limit order at the SL price entered.
SL-M – This becomes a market order once the order has been triggered. This requires only a trigger price to be entered. So when the trigger is breached, this order becomes a marker order and executes at the market price.
3. Give an example of a.buying b. selling SL order to enter a position.
a). Buying – If a trader wants to buy a stock XYZ @ 120 but the current price is @ 100 – he would use a stop loss order to execute. He will have to select a SL -M buy order or SL-L buy order. For SL-M buy order he will have to place only a trigger price @ 120 and the order executes at market price after the trigger is hit. For a SL – L he will have to place a SL trigger price slightly below 120, say @ 119.50 and then place a SL price @ 120. Once the order is triggered @ 119.50 it becomes a limit order @ 120 and will get executes anywhere below 120. [Note – if there is not order match below 120 then the order is jumped and remains pending]
b). Selling – If a trader wants to sell a stock XYZ @ 80 but the current price is @ 100 – he would use a stop loss order to execute. He will have to select a SL -M sell order or SL-L sell order. For SL-M buy order he will have to place only a trigger price @ 80 and the order executes at market price after the trigger is hit. For a SL – L he will have to place a SL trigger price slightly above 80, say @ 80.50 and then place a SL price @ 80. Once the order is triggered @ 80.50 it becomes a limit order @ 80 and will get executes anywhere above 80. [Note – if there is not order match below above 80 then the order is jumped and remains pending]
4. Give an example of a. buying b. selling SL order to exit a position.
a). Buying – If a trader has a short position lets say @ 100 and wants to restrict his loss @ Rs20. He will have to place a stop loss buy order @ 120. He could either use SL-M and place the order with a trigger of 120 or he could use SL- L and place a trigger @ 119.50 and SL @ 120.
b). Selling – If a trader has a long positon @ 100 and wants to restrict he loss to Rs20 , he will have to place a stop loss sell order @ 80. He could either use SL-M and place a trigger @ 80 OR he could use SL-L and place a trigger @ 80.50 & SL @ 80.
Dear one,
I am in search of most reliable indicator (singly or in any combination) which should be added to chart and time interval as a trader. When to enter and exit based on your preferred indicator.
Please dont tell it depends ones perception, please share what and how use them.
Thank you 🙂
Chan,
It is like searching for the holy grail, don’t know if there is anything called the most reliable indicator, even if there is I don’t know if people would be sharing it.. 🙂
1. What does Option writing mean? What is the difference between writing and selling?
When you are bearish on an option and sell it, we call it Option writing.
Writing and Selling are similar but not the same,
If you have bought an option and you sell it, we call it Selling
If you sell/short it first without buying expecting the price to go down, we call it writing.
2. What is the margin required for writing options? How can a client at Zerodha get to know this?
Margin required varies based on contracts, strike price and the underlying. Higher the risk, more the margin. Typically option strikes which are around the price of the underlying stock or index, tend to have same margin requirement as what is required for futures.
At Zerodha, we have a tool called SPAN calculator, where you can check the exact margin required to write an option even before you take a trade.
3. Nifty is at 5900, why is the margin for writing/shorting 5700 call higher than what is required for trading futures?
When you write/short an option, the risk is higher if the value of the premium is more and risk is lower if the value of premium is less. Since the risk is higher with a 5700 call for a person who has written an option, exchanges block more margin.
4. Nifty is at 5900, margin for writing calls reduce as the strike moves from 5900 to 6200.
True, as explained the premium on calls keep reducing as the strike price goes higher, since the premium is reducing so does the risk and hence the margin requirement also reduces.
5. Nifty is at 5900, margin for writing puts increase as the strikes moves from 5900 to 5700.
False, when the strike price goes lower, the value of the puts reduces and hence the margins will also reduce and not increase as mentioned.
how i should place “cover order” via zerodha mob application..i cant find
Anand,
Cover order is not presently available on mobile, should be up soon though.
Cheers,
I heard that now MCX intraday margins reduced from 50 to 40 % ??
Yes it is
What is the margin required for trading futures at Zerodha?
1. For Equity/Index/Currency Futures
http://zerodha.com/z-connect/blog/view/update-may-21-2013
“With NSE launching the “T+0″ same day settlement scheme and Zerodha opting for the same, your margin requirements for trading futures on NSE will come down by 20% effective May 20, 2013. So, for example, NIFTY margin requirement for an overnight position which was around Rs 30,000/lot is now reduced to Rs 25,000/lot. The new SPAN margin files is available on our backoffice. If you don’t know how to check the SPAN margin file, check out this blank”>blog”
What the above means is that we are among a few brokers who settle with NSE on T+0 and hence the margin required for overnight futures positions will be the lowest in the industry. The SPAN margin file which shows this is available on our backoffice.
If you need a higher leverage for intraday, you can use product type as MIS and you will be allowed to trade with only 40% of the total margin as per the SPAN margin file. This will be allowed till 3.20pm. Currency futures won’t get this benefit.
If you need an even higher leverage, you can use the product type as blank”>cover order and you will now need only 25% of the total margin to trade till 3.20pm. Again not allowed for currency futures.
2. For Commodity Futures
To trade for overnight, you will need 100% of the margin as per the commodity margin file. For intraday if you use the product type as MIS, you can trade the same with just 40% of the overnight margin upto 25 minutes before close of the market.
Cheers,
How to get information of OI change from platform during market hours to enable correct entry/exit
Thanks
Excellent guidance.Hope many more will come
excellent work sir, great, please share some more technical language in f&o please, will be highly obliged to u
In continuation of the above query on Open Interest, follow up questions from one of our clients:
1. If I sell 2 lots and there are 2 people X and Y who have bought 1 lot each, assuming we are the only people trading the contract, the OI is 2. What happens if X who has bought 1 lot sells it to another person Z, what is the OI now?
When X sold the lot he had bought from you to Z, a new contract was not created; the existing contract just changed hands so the OI will remain two. But if Z bought say 1 lot from anyone other than X and Y, then that would be a new lot and hence the OI will now go to 3.
Since in the query above a new lot was not created, the OI remains at 2.
2. Secondly as per your earlier post for OI on futures, if market is going down and OI is increasing you said the market could go even lower because of the OI logic. But aren’t both the buyers and sellers increasing, why can’t we look at that new buyers are coming in so market might reverse?
Assume the OI is presently 10 on Nifty futures and nifty is at 5500. This means there are 10 lots long and 10 lots short. Market came down to 5400, so the buyers together have a loss of 50,000(10x 5 lots = 500 nifty x 100 points = 50,000) and the people who are short have profit of the same.
At 5400, OI went upto 20, basically doubled. When OI went up, either the people who were holding positions from before added or new people came in and bought and sold lots, if you were looking at all of this, which side would you want to be on, long or short?
Understand that at 5400, longs are sitting at 50,000 loss and are weak and shorts are sitting on 50,000 profits and are stronger. The most important logic to make money in the market is to be with the trend, be with the person/stock who is stronger. That is why we infer that if OI went up significantly when market goes in a particular direction, the direction might continue for much longer.
3. Logic behind assuming that if 5600 calls OI went up significantly, markets might not cross 5600?
Let me give you an example, assume you are sitting in an exam on financial markets and there are 2 people sitting next to you, one is Nithin who has almost 15 years of experience in the domain and on the other side is this boy called Siva who is just 2 years in the business and still confused about what the business is all about, if you had to copy, from whom will you Nithin or Siva? 🙂
The whole theory of Open interest conspiracy on options is based on the fact that the buyers of options are mostly retail who are probably not experienced(similar to Siva in the above example) and the sellers/writers are institutions who are more proficient and have been doing it for a while( like Nithin). So if you had to bet on who is right, whom would you now?
So when 5600 calls OI is going up, there are new buyers and sellers coming in and since sellers are more proficient traders we assume that they are right and hence market may not go above 5600.
This is all a theory and may or may not work in real life, but we at Zerodha proprietary trading desk believe it works and are also planning on a tool to help all our traders to track the OI to know what direction the professional traders are in.
Rock N Roll,
Nithin Kamath
Sir, my I’d is RC
it’s regarding automatic logout from zerodha kite.
I am regular trading from zerodha since one year.
Plz give solution.
Hmm.. automatic logout shouldn’t happen, can you send an email to [email protected]
Hi Nitin,
i have understood what you have explained about Open interest (OI) but in money control i see the below details for one of the futures
OI= 8,725,500
OI Change = +3,062,500 (54.08%)
No of contracts traded=1518
As far as i undersrtand if OI change is 3,062,500 that means those many no of contracts have been created newly and no of contracts traded should be equal or higher than OI, but here it is just 1518 can you explain how to read these details.
Check this module on Varsity for more.
A query asked here by SasiMenon, which was asked to entire Zerodha Team:
1. What do you mean by Open Interest (OI) in futures and options?
Futures and options are contracts and similar to any other contract it is a contract between a buyer and a seller. Buyer is bullish (expecting market to go up) and seller is bearish (expecting it to go down).
All such open contracts are together called as open interest. So if I have bought 1 lot of nifty expecting to go up and you have sold 1 lot to go down, that makes it 1 open contract and hence open interest of 1.
Typically every derivative contract will have its own OI, Nifty Aug futures will have its own OI and Sep futures will have its own. Similarly OI will be different for calls and puts of various strikes.
2. What would you infer if someone said “Nifty futures went down with a huge addition of OI?”
OI will go up when more people start participating or existing people start adding positions. According to OI theory, typically when a market is going in a particular direction and there is a huge addition in OI, this means there is more conviction in the move.
So if a market is falling and there is huge addition in OI, this would mean that the existing short positions who are making profits are adding more and hence the fall could be bigger. But understand that this is only theory and may or may not work like this in real.
3. What would you infer if someone said “OI on Nifty 5600 calls went up significantly?”
While trading options, money required to buy options is much lesser than what is required to write (sell first). So typically the people who write options are people having access to higher capital and hence the logic is that they are more proficient traders.
When OI for 5600 calls is going up, there are new buyers and sellers(writers) coming in and since the writer is more proficient trader as explained above, the belief is that he is probably right. So if he is right, his view is Nifty will probably stay below 5600 and hence he is writing the 5600 calls.
So if someone says OI on nifty 5600 calls has gone up significantly according to the OI logic it means that if nifty is above 5600 it might come below 5600 and if it is already below 5600, it might find it tough to go above 5600.
4. What would you infer if someone said “OI on Nifty 5400 puts went up significantly?”
Similar to as explained above, since OI is going up on 5400 puts and because option writer is probably more proficient, the belief would be that market won’t probably go below 5400 and if it is already below 5400 it might bounce back above 5400.
Hope this clarifies,
Nithin Kamath
What does Rollover mean and what are the charges involved?
Typically a beginner trader usually gets confused with what rollover actually means, here is the explanation for the same.
When you buy any future or option, it will have an expiry day(last day until which you can trade that contract). So for example Nifty 29th Aug future, you can trade only till 29th Aug 2013. What if you want to hold nifty future to September?
In such a case you have to exit nifty august future and take a fresh position in the September future which would be then valid till in this case 26th September 2013. This process of moving your position from one month to another is called as rolling over. This rolling over can be done anytime before the market closing on 29th Aug 2013.
So for example if you have bought nifty august future at 5600 and on 27th Aug assume nifty future is 5560, you now decide to rollover your position to September since you want to continue your nifty future buy position. So basically what you will do is sell the Nifty August future and buy the Nifty september future which you can now hold till 26th September.
Charges involved?
When you sell the August future you have to pay brokerage & charges and when you buy back the September futures you have to again pay brokerage & charges. Charges are similar to a normal buy and sell transaction.
Siva_Sri Aug 22 2013, 8:25 pm
Quite informative . Keep posted more .
Thanks Zerodha
[ Click to thank ]
Hi,
I want to roll over my futures (short) contract as I am incurring losses (price went up) and hoping that price will come down after this month expiry. How do I do it?
Regards,
Gurpal
You have to buy back the current contract and then short the next month contract.
I have the same question as Gurpal. I shorted Nifty Apr 30 Futures at 8053 and now I am in loss. You said buy back the current contract and then short the next month contract. Won’t I lose my margin?
You will, but if you have a bearish outlook for the longer term and are right, the profits will offset this loss.
Basically, you have to book/realize ur loss in current position in order to roll over
Dear Nithin,
Still not clear with rollover. Say i did a buy of ‘x’ futures for Rs70000, now the loss is 30000. When I do a rollover first I have to exit the current position so loss of Rs.30000 is it not applicable? Lemme ask the question other way. After exiting the current position when I buy the ‘x’ futures of the next month what will be the price? Is it same as Rs.70000 around or with remaining Rs.40000 can I buy next month series?
Thanks,
Raju A A
Raju, when trading F&O all losses are marked to market everyday. So yeah, you will have to book the loss on X month futures and then take a fresh position in the next month future at the price at which it is trading. This month and next month future won’t be trading at the same price, the difference will be your rollover cost (which is like a loss).
Then what is this all fuss about Rollover….Its just the normal transaction…Sell Then Buy…Whats the benefit of customer in name of Rollover ????
Plz explain.
It is essentially what you say. Nothing different.
And I have looking at all articles of rollover to reduce the loss and I see it is just futile.
suppose i have 20 crude mini buy aug 29 at 3100. the .cmp is 3000 for aug 29 and and i want to sell at 3200.while cmp sep 29 is 3200.now if i rollover to sep 29 contract ,how to go from there and what to keep in mind?thanks
The only way you can roll over position is by exiting your current month contract and buying the next month contract. The difference you pay is the cost of rollover which you can’t avoid.
in which conditions roll-over skipped?
far month(3m) roll over and thinly traded ticker’s rollover skipped in some conditions,
may be it is skipped if symbol not traded up to next expiry date,but I am not sure about that,
can you explain that conditions clearly?
Hmm.. as long as there is a new month contract, you can rollover. The only reason you will not be able to rollover is if there is no trading happening on the next month contract.
Blue chip stocks are typically stocks like Reliance, Infosys, Microsoft etc, Well established and financially sound companies that have proven track record after operating for many years. In India stocks having market capitalization of over 10,000 crores and being in business for more than 10 years are called blue chip stocks.
The question is why are they called blue chip?
Ans. For all those who don’t play poker, this is how poker chips look like:
The roots of poker go back to over 200 years ago, they say that black chip – the 100 dollar one in the above figure was not there originally and the blue chips were typically the highest value chip in most poker sets. Similar to how in poker people were calling the highest value chips as blue chips, people started calling high value stocks as blue chip stocks.
A new term introduced in the last 10 years is Green chip Stock. This has nothing to do with poker, but stocks along the lines of ” green or earth friendly” industry are called green chips. So for example Suzlon which is into wind energy or tesla which makes electric cars are called as green chip stocks.
SASIMENON Aug 23 2013, 2:56 am
Thanks,Keep it up.
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While trading options, what is a straddle and strangle? When will you adopt the above 2 strategies, explain with an example on nifty? What is the difference between the above 2 strategies?
While trading options, a. what is a straddle b. what is a strangle?
When you buy both calls and puts on the same underlying at the same strike price and same expiry it is called a straddle. When you buy out of the money calls and out of the money puts on the same underlying at the different strike prices and same expiry it is called a strangle.
When will you adopt the above 2 strategies, explain with an example on nifty?
Both the above strategies are adopted when you expect a large price movement but don’t know in which direction. Since you buy both calls and puts, if there is a big movement either the calls or the puts will make a lot of money and loss on the other will be limited, hence you can profit from the strategy.
Assume tomorrow is the election results and today nifty is at 5960, you know that if tomorrow a stable government is formed markets will go up quite a bit and if not the markets can come down quite a bit.
A Straddle would be if you buy equal quantity of both nifty Aug 6000 calls and nifty Aug 6000 puts. Assume 6000 calls are trading at Rs 70 and 6000 puts are trading at Rs 100. If tomorrow nifty goes up 300 points, the value of the calls may go upto 280 and value of puts might come down to 10, but in net you will still make profit of 120 points. Similarly if market comes down 300 points, your puts would go up quite a bit and calls will loose only limited value. The risk with such a strategy would be if market neither goes up or down the next day after the result, in such a case both calls and puts would loose value.
A Strangle would be if you buy equal quantity of out of the money calls and puts. Since you expect to go either higher or lower by 300 points, you can buy 6200 calls and 5800 puts. Assume both are trading at Rs 30 and Rs 40 respectively. If nifty goes up 300 points, 6200 calls might become 150 and 5800 puts might become 2, still giving you a net profit of 72 {( 150+2) -(30+40) }, similarly if nifty goes down 300 points, you will net still make profits. The risk again would be if market doesn’t have a big price movement and remains flat, in such a case both the calls and puts will loose value.
What is the difference between the above 2 strategies?
When you take a straddle or a strangle, higher the price movement in either directions higher the profits. In the above example, if the movement was 500 points on nifty, you would make much higher profits.
The difference is, usually the % return will be much higher in a strangle because you are investing smaller amounts on buying out of the money options. So in the above example, in case of a straddle for 170 points invested( 100 + 70 = 170 * 50 lot size of nifty = Rs 8500) you make a profit of 120 points( Rs 6000) which is around 70%, whereas in the strangle for 70 points invested(Rs 3500) you get 72 points(Rs 3600) a return of almost 103%. On the flip side the risk is much higher in a strangle than a straddle if the market ends up remaining flat. Since in a strangle the options are out of the money, they would loose value faster.
In gist, If you think markets are either going to move up or down with a huge price movement, you can either take a straddle or a strangle strategy. Among these two, strangle would be a higher risk and higher return strategy.
Thank you Nithin,
That is a very clear explanation.
Lets consider present market scenario, for either of this strategies to work, how many points (NSE) market should fall /raise in one day??
Regards
Sumanth
Sumanth, check this chapter on Varsity. There is a download for an excel sheet at the end of the chapter to calculate this
Which have been the largest IPO’s in India and the world as on July 2013?
Ans:
India
1. Coal India, Rs 15,000 Crores, 2010
2. Reliance Power, Rs 11,700 Crores, 2008
3. ONGC, Rs 9,500 Crores, 2004
4. DLF, Rs 9188 Crores, 2007
5. Cairn India, Rs 5788 Crores, 2006
World
1. The Agricultural Bank of China, $22.1 billion, around Rs 120,000 Crores, 2010
2. Industrial and Commercial Bank of China, $21.9 billion, 2006
3. American International Assurance $20.5 billion, 2010
4. Visa, $19.7 billion, 2008
5. General Motors, $18.15 billion, 2010
6. Facebook, $16 billion, 2012
Why I am not able to get contract notes on the same day of trading in my mail..it is taking 2 days nowdays …
Hey, that shouldn’t be the case. Can you email your client ID to social[at]zerodha.com? Will have this checked.
I have mailed ..
I have applied for Bharat 22 ETF through Zerodha but haven’t got the confirmation towards unit allotment..also unable to check my holding’s in CDSL ..
Pls provide solution
Best write to support[at]zerodha.com with this Vijay.
I have a same problem. I bought 100 shares of KGL-BE worth Rs.1.75 on 22nd dec.2017 around at 1pm and I saw a notification saying successful. Then I emailed my query at [email protected] but no response yet.. Tkt No.-#233064.
Need a solution please.
This is different from the above issue. I believe your support ticket has been responded to.