Author: Nithin Kamath


 

Trading with other people’s money

Greed and the ill-conceived lure of quick money is the biggest enabler of trading activity in the markets. Those who trade constantly try finding ways to make more by increasing their trading capital. And those who don’t, lured by greed, are constantly seeking out someone to trade on their behalf or manage their money.  Like […]

Founder & CEO @ Zerodha
10 Mar 2021
 

Shorting and Indian capital markets

I guess you have read the headlines from the US on how retail traders are causing a “short squeeze” in stocks like GameStop, AMC entertainment, etc. If you haven’t, check this article by Finshots that explains this well. We have been getting a lot of questions around shorting, and if a short squeeze of this […]

Founder & CEO @ Zerodha
28 Jan 2021
 

The twisted world of illegal CFDs & binary options

I was the first one in my extended middle-class family to take up trading as a career back in the early 2000s. Through my 20’s and early 30’s, I was always told to go get a “real job”. The main reason being, trading stock markets is almost always equated with gambling, at least in India. […]

Founder & CEO @ Zerodha
24 Dec 2020
 

A product to get more Indians to save and invest

One of the biggest enablers for the growth of retail investments in India over the last 10 years has been Systematic Investment Plans or SIP in equity mutual funds. You select a mutual fund to invest in, decide how much you want to invest monthly, set up a bank ECS/NACH mandate form, and then money […]

Founder & CEO @ Zerodha
22
07 Dec 2020
 

Peak margin, Intraday leverages, & 2nd order effects – Dec 1, 2020

Restriction on intraday leverages Peak margin reporting has been brought about to restrict brokers from providing additional leverage over and above what VAR+ELM ( with minimum 20% for stocks) and SPAN + Exposure (F&O – Equity, Commodity, Currency) already offer. Starting Dec 1st, 2020, the maximum intraday leverage that can be offered by a broker […]

Founder & CEO @ Zerodha
30 Nov 2020
 

हमारी 10 वीं सालगिरह और भविष्य

आज, 15 अगस्त 2020, Zerodha के दस पूरे साल के संचालन को चिह्नित करता है। शून्य से चालू करके इंडिया के सबसे बड़े स्टॉकब्रोकर बनने कि इस यात्रा में आपकी सारी सहायता के लिए, आपको बहुत धन्यवाद। और हां, स्वतंत्रता दिवस की भी शुभकामनाएं!   मैं इस अवसर का उपयोग करते हुए आपके साथ भविष्य […]

Founder & CEO @ Zerodha
260
15 Aug 2020
 

Our 10th anniversary and the future

Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें। Today, the 15th of August 2020, marks ten whole years of operations at Zerodha. Thank you for supporting us in this journey from starting at zero to now being India’s largest stock broker. And of course, Happy Independence Day! I want to use […]

Founder & CEO @ Zerodha
992
15 Aug 2020
 

Bootstrapping vs Funding – a tax arbitrage

Edited: 1st Feb 2022 after the budget announcement that surcharge on LTCG (Long term capital gain) of unlisted companies to be capped at 15%. Overall LTCG for unlisted companies now drops from 28.5% to 23.92%.  We get a lot of credit for bootstrapping Zerodha and building the business without raising professional money. I have always […]

Founder & CEO @ Zerodha
43
07 Aug 2020
 

Direct Market Access (DMA) for retail investors?

Negative news generally gets more views compared to happy news due to the Negativity Bias. Social media went berserk when the rumour broke out about the possibility of stock exchanges offering Direct Market Access (DMA) to retail customers without involving a brokerage firm, implying exchanges functioning as quasi brokers themselves. Several articles were published without […]

Founder & CEO @ Zerodha
40
29 Jul 2020
 

Stock trading games & copy trading platforms in India?

Update 28th Oct 2022: This Yourstory article claims that NSE has issued cease and desist notices to stock gaming apps. As we mentioned in this post below, regulations don’t allow the exchange market data feed to be used for any fantasy or gaming app.  Update 21st Apr 2023: NSE published a circular prohibiting the use […]

Founder & CEO @ Zerodha
60
18 Jul 2020
 

शेयर ट्रेडिंग में सफलता के लिए क्या ज़रूरी है?

आपने सुना होगा कि शेयर बाजार में बड़ी आसानी से पैसा बनाया जा सकता है। यह सच है कि शेयर बाजार में ट्रेडिंग का काम चालू करना बहुत आसान हो गया है। मगर आपको ध्यान रखना होगा कि ट्रेडिंग को लाभदायक बनाना एक कठिन परिश्रम है।   ट्रेडिंग और निवेश में क्या अंतर है? मुझे लगता […]

Founder & CEO @ Zerodha
162
27 Jun 2020
 

Basic rules of trading

Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें। Contrary to what most people think, trading the markets isn’t easy. The stock market is probably the toughest place in the world to make easy money, especially in the long run. While opening and funding a trading account is perhaps the easiest way […]

Founder & CEO @ Zerodha
258
26 Jun 2020
 

Start investing in corporate bonds

Bank fixed deposits (FDs) have been the most popular retail investment product in India historically. But the FD interest rates have been continuously going down over the years and looking at current circumstances, they will probably remain at these low levels for some time to come.  The RBI repurchase rate (repo rate) is nearing an […]

Founder & CEO @ Zerodha
48
18 Jun 2020
 

ज़ेरोधा के साथ ट्रेड करना कितना सुरक्षित है?

वित्तीय दस साल तक व्यवसाय में रहने के बावजूद, एक हास्यास्पद गलत धारणा है कि ज़ेरोधा के पास रेवेन्यू मॉडल नहीं है। यह हास्यास्पद है क्योंकि यह हमारी वेबसाइट पर पारदर्शी रूप से प्रदर्शित किया गया है और लीगल दस्तावेज जो क्लाइंट साइन ऑनबोर्डिंग के समय करते हैं कि हम मुफ्त में इक्विटी निवेश की […]

Founder & CEO @ Zerodha
104
25 Apr 2020
 

How safe is it to trade with Zerodha? Recap

Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें। Financials Despite being in business for ten years, there is a ridiculous misconception that Zerodha does not have a revenue model. This is ridiculous because it is transparently displayed on our website and the legal documents that clients sign when onboarding that we […]

Founder & CEO @ Zerodha
228
24 Apr 2020
 

फिशिंग स्कैम का ख़तरा – यह क्या है और इससे हम कैसे बचें?

मैंने हाल ही में शेयर बाजार के घोटालों पर यह पोस्ट लिखा था, जिसके बारे में सभी को पता होना चाहिए। यहाँ हमने बताया है कि कैसे धोखेबाज़ सलाहकार आपको इल्लिक्विड ऑप्शन कॉन्ट्रैक्ट्स (वह ऑप्शनस जिनमे कम ट्रेडिंग होती है) में पोज़िशन लेने के लिए कहते हैं और जानबूझकर नुकसान पैदा करते हैं, और अपने […]

Founder & CEO @ Zerodha
89
17 Apr 2020
 

Beware of the Phishing Scam

Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें। I had recently written this post on stock market scams that everyone should be aware of. It was about how fraud advisors get you to take positions in illiquid option contracts and intentionally create a loss, moving money from your account to theirs. […]

Founder & CEO @ Zerodha
150
17 Apr 2020
 

Regulatory measures by SEBI on 20th March

SEBI has taken a bunch of proactive risk-containment measures in view of the ongoing market volatility. Check this circular. This may have been misinterpreted by many people and so NSE just put out a clarification. Let me summarize this for you.  Firstly, trading is extremely tough even for the most seasoned professionals in such times. […]

Founder & CEO @ Zerodha
88
22 Mar 2020
 

Introducing ImStrong

Trading can be an extremely stressful activity. An emotional roller coaster that all of us face every day. I have interacted with tens of thousands of active traders for almost two decades now. A trend I have seen across many of them who have done well trading has been that, along with spending a lot […]

Founder & CEO @ Zerodha
200
21 Mar 2020
 

Update: Fee increase on Call & Trade and RMS Square off

Traders, Over 1 million clients log on to our platform every day to trade. A small portion of the client-base, around 5% of clients, trades intraday using product types like MIS (Margin Intraday Square-off), BO (Bracket Order), and CO (Cover Order). The clients are required to square off these product types on their own, failing […]

Founder & CEO @ Zerodha
19 Mar 2020
 

Tax loss harvesting opportunity – FY 19/20

Traders, If you hold stocks or mutual funds in your portfolio that have unrealised losses, you can set off these losses against realised profits on which you have to pay taxes. To do this, you can book the losses, effectively reducing the realised gains and hence also reducing the tax payable. This act of booking […]

Founder & CEO @ Zerodha
124
18 Mar 2020
 

Why lower leverages, no BO/CO, during higher volatility?

Traders, Let us take the example of Monday, March 9, 2020. Crude oil futures on MCX opened down 30%. On Friday evening, the margin required to hold Crude Oil was 15%. So the clients who were long Crude futures had twice the losses of the margin required on Monday morning. The losses made have to […]

Founder & CEO @ Zerodha
286
13 Mar 2020
 

20 डेप्थ डाटा या लेवल 3 डाटा Kite पर।

कई वर्षों से ट्रेडिंग करने से और ट्रेडर्स के साथ बातचीत करते हुए, मैंने लगातार इन शिकायतों को सुना है कि रीटेल ट्रेडर्स पर ट्रेडिंग लागत कम होने, बेहतर प्लेटफ़ॉर्म और लेवल 3 डाटा तक पहुंच के कारण संस्थानों  को श्रेष्ठ लाभ है। हमारी टेक्नोलॉजी, और रेनमैटर फंड के माध्यम से हमारे साथी स्टार्टअप्स के […]

Founder & CEO @ Zerodha
35
26 Feb 2020
 

इन 2 शेयर मार्किट के फ्रॉड से सतर्क रहें

सबको आसानी से पैसा बनाना होता है, और इसी कारणवश वह शेयर मार्केट में उतरते हैं। लेकिन, जैसे किसी ज्ञानी ने कहा है, “आसानी से लंबी अवधि के लिए रूपया कमाने के लिए स्टॉक मार्केट दुनिया में सबसे मुश्किल जगह है।” और इसका अहसास हमको तभी होता है जब हमको कोई नुकसान नज़र आता है। […]

Founder & CEO @ Zerodha
172
10 Feb 2020