Comment on Stop Loss orders - Limit/Market

Zerodha commented on 13 Aug 2013, 07:51 AM

Hi Sharekumar,

1) Zerodha provides Intraday Trading facility in almost 250 scrips. You can find the entire list by clicking on this link: https://www.zerodha.com/download/IntradayMargins.xls
2) If you do a BTST (Buy Today Sell Tomorrow) transaction, then the stock would not be hitting your demat account. However there is a slight risk involved in doing BTST transactions… You can read more on BTST transactions and the inherent risk here: http://zerodha.com/z-connect/blog/view/btstatst-buyacquire-today-sell-tomorrow
You cannot hold short sell position overnight. Whenever you do a delivery sale you are obligated to deliver the stock to the counterparty… How other brokers do it is maybe when you buy and hold it for more than a day, they would hold the stock in their own Pool account and let you sell the same on a later day… In this case the stock does not hit your demat account… At Zerodha, we do not hold back any shares in the Pool Account. The shares are transferred to your demat account on T+2 in case you have not sold them…
3) Conducting a Pre-Opening Session is an initiative taken up by the Exchanges to arrive at the ideal opening price of a scrip for that day’s trading session… This is with the view to reduce volatility that accompanies during the beginning of the day…
Pre Open Session Timings:
Session
Time
What happens?
1) Order Entry Session = 9:00 – 9:08
Orders are accepted. Clients can place new orders or can modify existing orders placed. Orders acceptance stops randomly between 9:07 and 9:08
2) Order Matching Period = 9:08 – 9:12
Order matching for the accepted orders.Clients cannot modify/delete the orders in this period
3) Buffer = 9:12 – 9:15
Buffer for transition from Pre-Opening Session to Normal Session

4) Normal Market Opening = 9:15

4) It is not necessary that price movements happen only in the first 1-2 hours of the day… A stock can move anytime during the day giving you an opportunity to buy/sell…. It would depend on what strategies/ techniques you follow that would help take a decision whether you need to buy/sell a stock…

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