Happy Independence Day! Aug 15th, 2010 happens to be the day we started Zerodha, which means we turn 11 today 🙂 The past year, 2020-2021, has been highly eventful, to say the least. Society changed in unexpected ways, as did the industry, bringing a large influx of new traders and investors. To adapt to the […]
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Over my past 20 years in the markets, I have interacted with many retail traders, in various capacities. And one thing I’ve seen that leads retail investors to consistently lose money is option buying. The main reason for this is traders usually transition from trading stocks or futures to trading options. And so, they end […]
Over-trading is the biggest destroyer of capital when actively trading the markets. The trading frequency is usually inversely proportional to profitability for most traders. This means that when in a drawdown or making losses, the average number of trades are significantly higher than when making profits. Good traders typically either reduce their trading size significantly […]
We launched Console 2.0 earlier this year, a complete rewrite of our entire backoffice and reporting system from scratch. While many assume that generating various types of reports is simple, it isn’t, especially when dealing with huge amounts of data across millions of customers and regularly dealing with complex edge cases such as arbitrary corporate […]
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 […]
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 […]
We have all heard of the lakhs of crores of Rupees worth of trading turnover that happens in the Indian capital markets every day, creating the illusion that the markets are massive. However, this post explains why they are not, and why looking at trading turnover to determine the market size is highly flawed. Trading […]
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. […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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. […]
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. […]
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 […]
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 […]
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 […]