Zerodha i3 – Introduction

May 20, 2013
Zerodha i3

We’ve now stopped offering i3 as a product.

Traders,

To profit from trading, you must have a winning strategy other than paying low brokerage (which you already do at Zerodha). What is also of importance to our higher volume traders is keeping the impact cost low. Here are some of the issues high volume traders face:

  1. You want to buy 20 lots (2500) of INFY futures. You can either buy it at market price or limit price. If you buy it at market price, you can lose upto 3 points (Rs. 7500) just as impact cost because your buying will push the price of Infosys futures up. If you place a limit order, there are chances that the order will never get executed and you could miss a profitable trade. The impact cost can be extremely high while trading illiquid stocks/contracts. You will note that compared to the potential impact cost the brokerage will seem insignificant.
  2. You want to sell 10 lots of JSW Steel (5000 shares) at 705, you place a limit order to sell and the market price is around 704. How many times have you seen the price reach 704.9 and your order not getting executed? Your order itself will be acting as the resistance.

To solve the above 2 pain points and many others that high volume traders encounter while executing a trade, we are launching “i3 – Execution based algos”. If you know what stock/contract you want to buy or sell, the i3 algos will ensure that it is executed efficiently.

Do note that since these are algos, this will not be allowed for our retail clients. This can be executed only by clients who have dealing terminals. To get a dealing terminal at Zerodha, you will have to register as an authorized person with us on the exchanges and submit NISM certifications.

Dealer terminals will also cost Rs 250/segment/exchange/month and the i3 module will come with a rental of Rs. 5000/month.

Find following the user manual for i3 and if you are interested in a demo,  please send an email to [email protected]

Download – Zerodha i3 user manual

Happy Trading,
Zerodha

Your friendly neighborhood discount brokerage

58 comments

  1. Maahi_007 says:

    I’m trading in F&O as an individual .. Please give me more info about the same.. I’m willing to take up the certifications

  2. Traderji says:

    NIFTY arb?
    1) Is it possible with Co location and some sort of Autospreader software to arb between BIG NIFTY and MIni Nifty contract?
    and after all the fees is it worth it!

    • Nithin Kamath says:

      Traderji,

      Mini nifty no more trades on the exchanges. They have taken the contract out.

      But yes we can collocate you and give you an arbitrage software, cash future, put call etc. But is it worth the money put to get it running? hmm.. it would depend on your strategy..

      Cheers

  3. KrishnaC says:

    Lets say I plan to buy a put of nifty at 26. I want a Stop Loss order automatically generated after the buy order has executed that would sell my put when the price goes below 20. Is it possible ?

    • Nithin Kamath says:

      Krishna,

      Presently this facility will not be possible on retail platform, but will be possible on i3. But i3 is allowed only on dealer terminal. i3 which will include all the above algo’s will cost Rs 5000/month as rental in addition to which you will need to become an authorized person with us and also pay dealer terminal rental charges. If you are interested, send your contact to [email protected], we will get someone to call you back.

      Cheers,

    • Nithin Kamath says:

      KrishnaC Jul 24 2013, 9:35 pm
      Just want to make sure its available to options trading ..I see most of the i3 is mentioned for equity trading
      [ Click to thank ]

    • Nithin Kamath says:

      yes available for options and futures

  4. sharekumar says:

    So This Product is Not For Retail Customers, Right ?

  5. vikasyadav says:

    hello required cash to future and option arbitrage software how much fund is required and how much is cost of your software and also tell me some detail of this software…………..

    • Zerodha says:

      The amount required would depend on the arbitrage strategy that you follow…The cost would be Rs 5000/month for i3 subscription and Rs.250/segment..i3 would be added as a plugin on Zerodha Trader..All the details are above.. Do you have any specific questions in mind?

    • Nithin Kamath says:

      vikasyadav Aug 16 2013, 12:31 pm
      ya i know is depand on strategy please tell me any cash to future strategy amount and also tell me that your software i3 have this feature like example-i need nifty put and call with combine price 150 its 2 leg order can your i3 software invest in butter fly,condor,clendar strategy this type of strategy please tell me i am searching company who provide this type software or id…………….

      [ Click to thank ]Reply

    • Nithin Kamath says:

      Vikas,

      The role of i3 is to reduce your impact cost if you are trading higher volumes. The option strategies that you have mentioned won’t be possible. Also, for cash future arbitrage strategy it is very important to have high speeds otherwise it won’t really make money. Typically cash future arbitrage strategies have to be run from the collo(servers in NSE itself) and it can be pretty expensive. If you are interested, email your contact to [email protected], will call you back on this.

      Cheers,

  6. myram says:

    I have an account with Zerodha (I registered recently). How do I activate this feature?

    • Nithin Kamath says:

      Ram,

      This feature is not available for retail clients, to use the i3 feature, you will need to get a dealer terminal from Zerodha, this would mean you having to register with us as an authorized person.

      Cheers,

  7. thebrowser says:

    1. If one is already registered with another broker as an “Authorized Person”, would it be possible to obtain your dealer terminal in addition for use of i3?

    2. If one wishes to run some proprietary algos, is it feasible to get a simple API access to NEST or some other software of yours just to enter orders and get a data feed?

    • Nithin Kamath says:

      1. If you are already registered with someone as an AP, it won’t be possible through us again. You will have to surrender there and apply again through us.

      2. Yes possible, but requires you to be an AP again.

  8. majo says:

    can i use algos for arbitrage advantage in scrits

    • Hanan says:

      algoZ is nothing but semi-automatic technical analysis. This means that you can plot technicals and execute orders before the human hand can react. There are a few options on i3 which allow you take advantage of arbitrage opportunities that may present themselves in the market. Why don’t you call our office and ask for an i3 demo?

  9. nagesh says:

    suppose if i have a dealer terminal, can i place orders on behalf of my friends through my terminal bcos some of them do not have the time to look into the markets and wants me to trade on their behalf.

  10. Arun says:

    I want to read detailed operation manual for zerodha trader. i.e. where is what and about informatio abou tons of terms used.

  11. DN0143 says:

    Could comments on what exact NISM certification is required to be submitted for Algo trading (http://nism.ac.in/certification/index.php/nism-certifications)?

  12. Harideep says:

    Hi, I am looking at earning from Arbitrage opportunities between futures and cash. How do i go about it

  13. Abhishek says:

    Hello Nithin Sir,
    is it possible to have a dealer terminal from zerodha without buying i3,
    which NISM certificate is mandatory for getting dealer terminal. ?

    • Yes you can get dealer terminal, but we at Zerodha don’t allow people to trade on behalf of others. So your dealer terminal can’t have people other than you mapped to it. Dealer terminal, can be used to automate trades. To get a dealer terminal you need to be registered as an authorized person with us, and also have NISM Series VIII certification.

      • Murtaza Telya says:

        Hi Nithin,

        I wanted to know, are there any other advantages to getting the Dealer terminal besides algo ? For example, are there any margin or brokerage related benefits that come with the dealer terminal ?

        Awaiting your response.

  14. Arun says:

    Dear Nithin Sir
    I am a Zerodha client and want to know that if there are systems like ‘Dealer Terminal’ ‘Algo-Trading’ are present in the market then how can we small retail traders compete with them. We are far behind. By this logic we can never win and continue to make losses in the long term. What do you suggest?

    • Arun, algo-trading doesn’t guarantee success. It is easily possible to loose money fast doing this. The good thing with algo trading is that it follows rules without emotions. If you as a retail trader is disciplined enough, you can run an algo manually.

  15. Shahnwaz Shaikh says:

    Hi Nitin Sir,

    I just want to know whether scalping is allowed using autotrade on dealer’s terminal?
    And also what will be the overall charges – monthly and one time, to get a dealer’s terminal for NFO?
    (Including Zerodha i3 charges)
    Finally, will there be any changes in Brokerage and other transaction charges?

    Thank you for all your support to us technical traders!!!

  16. rajesh says:

    Hi Nithin,

    Using Zerodha Algo trading, i am planning to completely automate my trading.
    Supertrend indicator is giving good results for certain index/stock futures.

    Is it possible to automatically trade on Supertrend signals using zerodha i3 ?
    I am planning to go for NISM certifications.

    Rajesh

  17. Mayank says:

    Why Zerodha doesnot provide Dealer Terminal ?

  18. AHSAN says:

    i just completed my nism certification VIII
    and i want to do automate trading . what i have to do to get it ….. help me out

  19. Rishabh Nahar says:

    Hi,

    I had contacted Zerodha last month to know more about the i3 execution algo. But i was told that this service is not available anymore. Why have you discontinued this?
    I was keen to use this service.

  20. Tharun says:

    Hello,
    With dealer terminal, what will be the pricing for intraday,F&O and leverages?

  21. Sohom Kundu says:

    Hello,

    Please guide me on the following –

    We friends (5 including me) have agreed to open trading account and that
    I will be in charge of trade execution.

    All the five trading accounts will be in individual names, but I will be the person having access to all of them. Separate individual bank accounts have been opened to link with these trading accounts. It is like have five different trading entities but the control will be with me.

    At the end of 6 month period, my 4 friends will compensate me for the efforts by paying me 3000 rupees each to accommodate the efforts and infrastructure cost.

    If the setup succeeds, we plan to continue ahead and include more of our friends and family members.

    Kindly guide me how I can achieve this, as I have been searching on this forum and tried to get information from various broking houses as well.

    I am also trying to get the NISM / NCFM certification for equity and currency derivatives to aid me in my goal.

    So far nothing concrete has emerged. Any and all help is highly appreciated.

    • Matti says:

      Sharing login credentials with someone who doesn’t own the account or trading on behalf of someone else is something I would advise against strongly. Such setups work fine when you’re making money but could turn ugly if you lose any.

  22. amol says:

    is there any classes or manual guide to learn the application of , anything a to z, from zerodha..pls provide link ..

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