Perils of using the Last Traded Price (LTP)

You have created an excellent option strategy, and backtesting shows that it can be profitable. However, the strategy didn’t hold when you applied it in the real market. What could have gone wrong? Did you use the Last Traded Prices (LTP) in your backtest? Most option backtesting tools design trading strategies using the last traded […]

Founder, StockViz
01 Mar 2024

Lot sizes reduced for various NSE F&O Contracts

Traders, If you are following us on Zerodha Circulars, you are probably already aware of the revision in F&O lot sizes for a bunch of contracts on NSE. This post will answer any query that you may have on how this circular could impact you. Firstly, why are the lot sizes reduced/revised? SEBI has prescribed to the […]

Head of operations and compliance at Zerodha
29 Oct 2014

STT Trap – Options Expiry – NSE BSE MCX-SX

Update: 2019 Budget, no more STT trap. STT on exercised options to be on intrinsic value from Sep 1st 2019. Check this.  Update: With effect from 31st August 2017, the exchanges have put in place a mechanism to address this anomaly. More details on this change here. Traders, Why do options trade at lesser than […]

Founder & CEO @ Zerodha
15 Jun 2013