Comment on Cover Orders - For Higher Leverage

Manu Adam commented on 16 Jan 2015, 12:04 AM

Dear Nitin, I appreciate your efforts to provide us better tools and more leverage such as this – cover order type deal. But my experience with it tells me that it is more a tool to fleece money from small traders than an opportunity to do more than trading with high leverage. I don’t want to sound biased in anyway, but truely speaking I have been experiencing this for a long time.

My experience last week was specially bad and shocking.

I was trading Jindalstel Future which is quite a volatiel scrip. At one point it was going up. I had a bought it at 150.2 with Stoploss at 148.5, scrip was at 151.1. Suddenly I saw it fell down to 149.2 and then rose again .. and I was comfortably profitable again. But to my horror, when I checked my margin away from chart (as I was focusing on amibroker), I found that my scrip was already sold at 148.5 .. while on chart the scrip nowhere touched that point or even went below 149… lowest point it went was 149.2. I had even called Zerodha to seek explanation but got the stock reply that it was done at exchange and they cant do anything about it.

Second time, I was trading the same and had a sell order. Scrip was going down at 152.4. My stoploss was 153. Suddenly jindalstel moved up two point and reached 154.8. I found that my trade was not squared off at 153 with a loss of just 0.6 points but rather it was traded at 154.8 only and I suffered the huge loss @Rs 2.4 per scrip.

I had shifted to Zerodha with a trust that I wont be cheated here. Can you please enlighten me as to why such things happened and how to avoid them? Otherwise how can we ever trade profitably if such things keep happening again and gain?

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