But, these freak trades even trigger the "Auto-square-off and Margin Shortfall Penalty", for that 1-2 seconds move! either way, we will be punished..!!
This is even more scary because Stop loss limit order is of no use then.... please somebody kindly confirm if even for freak trades this would autosquareoff
@@sudiptapaul7243 Thanks for the reply.... but since they are sending us the SMS for us to respond...I feel they may not square off in 1 second..... there might be some time interval, which we have to confirm from zerodha.......by the way how about other brokers... do they have the same rules....?
Yet another Good follow up Content video #Saketh... Though you explained about the #Freak Trade on #24th #Aug about #16450CE very clearly and you mentioned #NEVER ever use #SLM with your personal loss trades examples... Still people are doing mistakes... Thank you so much for your concern about #Retail trader's future... Keep up with #Awesome support to the #Trading community with your great skills... 👏👏💐💐😍😍
Exchange can put Circuit filters. Otherwise, the exchange is hand in glove with those players. This was done to scare retail traders as nowadays knowledge on market is steadily increased and getting matured and hence those BIG FISH are unable to suck money from Option buyers which use to be the norm before - When I went for training in 2012, Option selling was told as very very risky and hence should not be attempted at all - But now OPTIONABLE and many such channels are educating us and hence we also know how to play -- That is the reason, to shake out retail players this is done and frequency is increasing - It happened even on 8th Sept 2021 in Dec PE 15500 -- from 90 within 2 sec came to 54 and then jumped to 90 once again - This is going to happen very frequently going forward
not only stop loss limit order, NSE also comes up with a 4 step confirmation rules,and it will be effective very soon...because of that rule if someone tries to place order with more than 40% higher price for any option strike system will not going let him do that in such scenario he has to cancel that order or has to correct the price.
@Perfect Boy actually The '4step confirmation' system already in place for futures,but after observing these frequent freak trades in a row NSE now thinking of to introduce it for option too.Generally in the time of placing a order we confirm 2 time,first through clicking 'Buy' and then 'Confirm' but in this system there will be conditions in back end due to this if any one tries to place a order for option strike and if it's price is less then 50 Rs in that case he/she can not place order with more than 20rs price deviation from base price or LTP of that option,in case of option's price more than 50rs the upper limit will be 40% frome base price or LTP of that option strike,even someone unconsciously or consciously put price which is more than 20rs or 40% system will generate a automatic pop-up and that trader has to cancel or modify that order with permissible price limit,this is a very robust system atleast from the previous system where price used to get stuck due to any sudden scrupulous price fluctuations and then NSE officials had to correct it manually, that leads to many complications and because of that NSE recently discarded that system and then these incidents of freak trades started to occur but after this new system gets introduced there will be no more chances to suddenly 800-1000 % price hike.
@@optionables Who will be placing orders at such prices - are there orders placed already at such high prices or is it done at the moment by algo? is it ok to say to this is done intentionally by operators, whats your take?
Hi saketh, some posts screenshot of limit orders executed at freak trades. I don't know what going in nse!! Are they purposely making fake screenshot to make fear of retail traders??
What if the freak trade target is 6000+points for banknifty strike covering the entire margin pledged, will the broker's RMS system automatically square off the position? Targets of freak trades are increasing day by day! So, This scenario can make SL L useless?
@@lokeshkn3102 ask them on phone and the don't wait for time I guess even if they wait they'll wait for %loss or just loss amount I don't know confirm with them
What if I take a spread position without stop-loss. How much risk I am exposed to in that case? As position is hedged and these freak trades are happening in micro/milliseconds how this will affect spreads?
Even with spread, this problem is there - In the same example say you sold 37100 PE and Bought 37 500 PE -- now when 37100 went from 450 to 1800 your sell position hit margin shortfall whereas your buy position on 37500 PE reamined there only where you bought that did not rise to say 1000. That is why this is called Freek trade - Hence even with spreads this problem is there - Hope I explained it properly.
Good information Sir. I have few queries. 1. If iam holding a position and if there is a freak trade in market opening how will I set a stop loss at that moment. 2. If I have taken a hedged position without any stop loss and if there is a freak trade I will get peak margin call. So will my position get automatically squared off due to peak margin, as freak trade is for very few seconds and within few seconds positions will get back to normal. Please reply to this query Sir.
Is there any impact of freak trade on positional trader ??? I believe there will no affect on strategies like iron fly ,iron condor or any other hedged strategies..plz suggest on this and let us know...
Really appreciating your effort Saket. Very well and clearly explained Thank you so much. Used to do your 1 pm short straddle strategy and feeling great about. In that the entry also has to be done on SL limit order? Used to do in basket order. Will it be possible to set as we are entering at fixed time 1pm?
Can this happen with regular market orders? Technically it can but does this mean we should avoid market orders altogether? Or Should we instead monitor market depth before placing regular market orders?
Who will be placing orders at such prices - are there orders placed already at such high prices or is it done at the moment by algo? is it ok to say to this is done intentionally by operators, what's your take?
Are these freak trades happening due to sebi margin rule..? Because due to this rule i think liquidity was affected due to lack of traders in market... ur opinion plz @optionables
Yes but it is only made easier now I mean these could've happened before but institutions would've required huge amounts of money and now they require less money for this also before when freeze limits were present it could've happened but not on this big scale
Just to be curious SiR , Lets suppose LTP RS 130 NOW WHAT IF FROM ONE DEMAT ACCOUNT I PUT BUY ORDER AT LIMIT PRICE 500 AND PUT ANOTHER SELL LIMIT ORDER AT 500 FROM ANOTHER DEMAT ACCOUNT
But ...if we place SL- L order...but it goes 1921 , it means it reached ...here is the question is as per new margin rules our margin rules , it reaches above 2lakh ...will broker close it at 1921 right ..?
Today again freak trade in 36000PE..From 85 it went to 900.. Now only option is to place a sell order with 5 to 6 times of premium of the call or put which we sold..May be one counter measure..Optionables team your opinion plz..
Hi saketh,can you please explain why people love trading in nse more than bse where I thought bse is clean and clear image, but nse had done some scams and paid penalty also for that
Very nice explanation. I have one question though. You mentioned that this is not illegal, how can a option which has 68,000 volume on average will suddenly have 2 lakh volume. I mean this surge has to be done by someone right? If so isn't that illegal?
It's market manipulation for sure but you can't say anything cause it's not illegal to put orders by fii/dii. It's ethically wrong for sure but nothing can be done using legal methods
What happens if a freak trade happens because of few traders and margin requirements shoot up for people like us? Will it be autosquared off ? Then we also lose huge money? Right?
Can’t we place sell orders without stop loss of any kind and buy a far away otm as a hedge. Stop loss will never Trigger in a freak price and any loss in selling will be compensated by the buy order ? Also will reduce the margin requirement.
@@sudiptapaul7243 sell order will also not execute and the price will normalize to where it was before. In other words status quo after the one second spike. The buy position is to hedge the naked sell option in a normal price movement Has nothing to do with the freak trade
If any of trader's mtm surpassed you available cash balance your broker will auto square off your trade with market order....it doesn't matter if your net mtm is even positive 100000+
@@bhuvneshh 1) sell leg is already protected FROM THE FREAK TRADE as there is no stop loss 2) after that the price will normalize and come back to the old level 3) now as in normal trade if the market moves against you say you sold a call order and market is moving up the sell call will start giving loses 4) now there is unlimited loss as there is no stop loss IN THIS LEG 5) the buy call order will start to give profits and compensate for the loss in the sell leg 6) both may not move in tandem due to delta but near to expiry max loss will be equal to difference between the two strike prices. 7) works like the stop loss. 8) this is my understanding the authors may vouch or correct me if I am wrong
Broker will autosquare off or give warnings when your margin will be over and you'll get margin shortfall penalty Also you don't when it's freak trade and when not so if you will not keep sl you'll loose in normal trades too lol
Exchange should freeze the option price if it crosses the option price of next strike. In this case, price of 37100 pe should have been freezed as and when it crosses the price of 37200 pe
Auto square off (MTM losses exceed 50% your position ) is even more scary because Stop loss limit order is of no use then.... Dear Saketh, kindly confirm if even for freak trades this would autosquareoff.... thanks
hi bro, if i put SL L and if my sl jumped, is there any chance of wipeing out entire capital? pls reply bro,i stopped intraday after seeing freak trades bro
My question is that , I do option selling in Zerodha with less margin like 45000, through hedging.Will my positions get auto squared off due to these freak trades in case of margin fall?
1st you'll get margin short fall penalty 2nd I don't think it will need to autosquare off because your sl would've already hit and in case you don't have any sl it will give warning for some amount of loss and then autosquare off
Is there even a slightest of possibility of SL Limit order getting executed at market price? I read somewhere a SL limit order also suffered due to freak trade (Not talking about the price missing the trigger, talking about it actually getting filled at high market price)
no highest you can get is the limit and I advise keeping trigger price 400 limit 500 (just in case freak trade happens at worst you'll get 500) and if it jumps then your order will not be filled and if it's legit (not a freak trade) price will gradually rise like it will not jump 100points in 3-4ms(exchange takes this much to fill orders)
What if we place SLM for buying an Bank Nifty option worth 300/- maintaining 8500-9000 in my trading account.. ?? Will my buy order execute at such a high price of 1850 or 1921 etc ??
@@bhuvneshh ipersonally don't use SL and enter ,exit basket orders at market price usually,so now I'm worried to use basket orders and also icant place SL-L as ideploy spreads (all positions should be executed without any one order delay)...any possible solutions ?
@@bhuvneshh Without sufficient margin how can the order be executed.. big reason to worry.. Generally zerodha shows " order rejected due to insufficient funds" , if we wanted to execute an order which requires more than the funds we have in our trading account..
Hi Saket, Today I have talked with zerodha support and they told me even after putting the Stopploss Limit order if my M2M some how cross the 50% of the position then they will auto square off the position. In that case for a 1 Lot of Bank Nifty option I am going to loose more than 80K . What is the best possible solution for this problem according to u?...Please ans
no because freak trades normally happen at one strike price and hedges are on different strike prices also even if in some 1 out of 100billion chance both your legs get freak trade at exact same second (it's practically not possible I mean it is but it's very very unlikely you dying by you house collapsing or getting in a fight with someone is more so it's highly unlikely) even then no guarantee both freak trades will be of same magnitude and even if they're there's no guarantee you'll get best price on your buy leg maybe it'll trigger at 10points higher and your sell leg gets filled at 1000points higher so short answer no
If HNF people know 68000 orders available & with their huge money place 2L orders take price higher. How come this is a fair game ? Thank you for helping small retailers to escape from freak trades. _/\_
You are the options Guru.Very detailed explanation.
But, these freak trades even trigger the "Auto-square-off and Margin Shortfall Penalty", for that 1-2 seconds move! either way, we will be punished..!!
Exactly, I have talked with zerodha,...they told me they will auto squre off the position whenever position will cross 50% loss
Nice name bhai
This is even more scary because Stop loss limit order is of no use then.... please somebody kindly confirm if even for freak trades this would autosquareoff
@@sudiptapaul7243 my. .
....
@@sudiptapaul7243 Thanks for the reply.... but since they are sending us the SMS for us to respond...I feel they may not square off in 1 second..... there might be some time interval, which we have to confirm from zerodha.......by the way how about other brokers... do they have the same rules....?
It's nice to see you took so much of effort in explaining it, good going 👏
Crisp and clear explanation. No further research needed on freak trade
Freak trades explained in a right way to help novice traders like me.. All my doubts got cleared. Thank u.
ಧನ್ಯವಾದಗಳು,ತುಂಬಾ ಉಪುಕ್ತವಾಗಿವೆ.ಮಧು Mysore.
Yet another Good follow up Content video #Saketh... Though you explained about the #Freak Trade on #24th #Aug about #16450CE very clearly and you mentioned #NEVER ever use #SLM with your personal loss trades examples... Still people are doing mistakes...
Thank you so much for your concern about #Retail trader's future... Keep up with #Awesome support to the #Trading community with your great skills... 👏👏💐💐😍😍
Beautifully explained... May GOD bless you all.....
Exchange can put Circuit filters. Otherwise, the exchange is hand in glove with those players. This was done to scare retail traders as nowadays knowledge on market is steadily increased and getting matured and hence those BIG FISH are unable to suck money from Option buyers which use to be the norm before - When I went for training in 2012, Option selling was told as very very risky and hence should not be attempted at all - But now OPTIONABLE and many such channels are educating us and hence we also know how to play -- That is the reason, to shake out retail players this is done and frequency is increasing - It happened even on 8th Sept 2021 in Dec PE 15500 -- from 90 within 2 sec came to 54 and then jumped to 90 once again - This is going to happen very frequently going forward
BEST EXPLANATION OF FREAK TRADE SUPER EXCELLENT LIKE
I had thought of the same situation this could happen more in low liquid strikes ... nicely explained ... 👍
not only stop loss limit order, NSE also comes up with a 4 step confirmation rules,and it will be effective very soon...because of that rule if someone tries to place order with more than 40% higher price for any option strike system will not going let him do that in such scenario he has to cancel that order or has to correct the price.
@Perfect Boy actually The '4step confirmation' system already in place for futures,but after observing these frequent freak trades in a row NSE now thinking of to introduce it for option too.Generally in the time of placing a order we confirm 2 time,first through clicking 'Buy' and then 'Confirm' but in this system there will be conditions in back end due to this if any one tries to place a order for option strike and if it's price is less then 50 Rs in that case he/she can not place order with more than 20rs price deviation from base price or LTP of that option,in case of option's price more than 50rs the upper limit will be 40% frome base price or LTP of that option strike,even someone unconsciously or consciously put price which is more than 20rs or 40% system will generate a automatic pop-up and that trader has to cancel or modify that order with permissible price limit,this is a very robust system atleast from the previous system where price used to get stuck due to any sudden scrupulous price fluctuations and then NSE officials had to correct it manually, that leads to many complications and because of that NSE recently discarded that system and then these incidents of freak trades started to occur but after this new system gets introduced there will be no more chances to suddenly 800-1000 % price hike.
Where did u heard about this? Plz provide the source or link
@@biswajitsarkar9173 plz provide the link where did u get that NSE is changing the system
Freak trades affect positional traders as well?
They hedge their positions instead of stop loss
Excellent explanation of the problem. I now understand the threat SLM possess. Will use SL Limit 😂😂😂
ICICI direct does not have a SL market . We have sl limit only.
This is what i searched for 2 days. Very good explanation Saketh. My question is who will gained from this freak trade.
People who have placed the sell orders at those prices
@@optionables but what happen if ur broker square off ?
@@optionables Who will be placing orders at such prices - are there orders placed already at such high prices or is it done at the moment by algo? is it ok to say to this is done intentionally by operators, whats your take?
Very well said, I couldn't see any channel explaining such a indepth analysis 🙏🙏🙏🙏
This is very very useful and necessary video for all new traders...thank you so much🙏🙏🙏🙏
Please let us know how to avoid auto squareoff situations...
Thankyou for explaining in a simple way as possible. Appreciate your efforts
Hi saketh, some posts screenshot of limit orders executed at freak trades. I don't know what going in nse!! Are they purposely making fake screenshot to make fear of retail traders??
Hi Saket, you have very nicely explained the freak trade concept and solution to this with very good example.
What if the freak trade target is 6000+points for banknifty strike covering the entire margin pledged, will the broker's RMS system automatically square off the position?
Targets of freak trades are increasing day by day!
So, This scenario can make SL L useless?
Not all brokers square off Immediately. Some give a warning call before squaring off
@@optionables will zerodha give warning, if so how many min they will wait
@@lokeshkn3102 ask them on phone and the don't wait for time I guess even if they wait they'll wait for %loss or just loss amount I don't know confirm with them
Thank you Saket for enlightening explanation. In next video also explain as how to place SLM and SLL Orders and their pros and cons.
Nicely explained 👌
But there is circuit…should users not be allowed to not place amount greater than upper circuit…
The circuit has been removed according to new SEBI'S circular.
Thanks for response and opening our eyes..
What if I take a spread position without stop-loss. How much risk I am exposed to in that case? As position is hedged and these freak trades are happening in micro/milliseconds how this will affect spreads?
Even with spread, this problem is there - In the same example say you sold 37100 PE and Bought 37 500 PE -- now when 37100 went from 450 to 1800 your sell position hit margin shortfall whereas your buy position on 37500 PE reamined there only where you bought that did not rise to say 1000. That is why this is called Freek trade - Hence even with spreads this problem is there - Hope I explained it properly.
Good information Sir.
I have few queries.
1. If iam holding a position and if there is a freak trade in market opening how will I set a stop loss at that moment.
2. If I have taken a hedged position without any stop loss and if there is a freak trade I will get peak margin call. So will my position get automatically squared off due to peak margin, as freak trade is for very few seconds and within few seconds positions will get back to normal. Please reply to this query Sir.
May I highlight one point please. Even in that 0.001% when SL-L doesn't clear, please place limit order while exiting the trade and not a market order
Does the SL Limit order provide immunity to loss due to freak movements in option premiums?
helped a lot to understand this mechanism
🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏Sir ,,,
In freak trade mtm cross 80% limit loss broker position square off kar dega???
Please reply
🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏
You can't place target price beyond a specific %. Right?
Is there any impact of freak trade on positional trader ???
I believe there will no affect on strategies like iron fly ,iron condor or any other hedged strategies..plz suggest on this and let us know...
Thanks for time and effort spent in providing clarity. Does normal Market order also have the same risk of Freak Trade ?
Excellent explanation dear.
Really appreciating your effort Saket. Very well and clearly explained Thank you so much. Used to do your 1 pm short straddle strategy and feeling great about. In that the entry also has to be done on SL limit order? Used to do in basket order. Will it be possible to set as we are entering at fixed time 1pm?
Thanks for sharing this important update
Can this happen with regular market orders? Technically it can but does this mean we should avoid market orders altogether? Or Should we instead monitor market depth before placing regular market orders?
Who will be placing orders at such prices - are there orders placed already at such high prices or is it done at the moment by algo? is it ok to say to this is done intentionally by operators, what's your take?
But SLM Means its should trigger within 1% of the market price around it
Are these freak trades happening due to sebi margin rule..? Because due to this rule i think liquidity was affected due to lack of traders in market... ur opinion plz @optionables
Yes, not many players now, so less money needed to manipulate
Yes but it is only made easier now I mean these could've happened before but institutions would've required huge amounts of money and now they require less money for this also before when freeze limits were present it could've happened but not on this big scale
Wonderful ^Wonderful explanation SAKETH
Saketh, can the broker square off your position if your MTM goes above 80% loss during freak trades
Just to be curious SiR ,
Lets suppose LTP RS 130
NOW WHAT IF FROM ONE DEMAT ACCOUNT I PUT BUY ORDER AT LIMIT PRICE 500
AND PUT ANOTHER SELL LIMIT ORDER AT 500 FROM ANOTHER DEMAT ACCOUNT
Can we get auto square off by broker ?
thank you Sahith for this cristal clear explanation with examples.
But ...if we place SL- L order...but it goes 1921 , it means it reached ...here is the question is as per new margin rules our margin rules , it reaches above 2lakh ...will broker close it at 1921 right ..?
Today again freak trade in 36000PE..From 85 it went to 900..
Now only option is to place a sell order with 5 to 6 times of premium of the call or put which we sold..May be one counter measure..Optionables team your opinion plz..
Good explanation.
That means freak trade will happen in illiquid option contracts??
Instead of putting sLM can we put sl limit.
U said only short strangle adjustments
I need adjustments for short stradle
If we make weekly call butterfly or put butterfly, which is perfectly hedged position, then does freak trade can give loss????
Yes,Thank you for the explanation .
Hi saketh,can you please explain why people love trading in nse more than bse where I thought bse is clean and clear image, but nse had done some scams and paid penalty also for that
Excellent video....
Very informative video 🙏🙏. Keep it up
One of the best freak trade video
@Pinned_ by Optïonables hi spammer
Sir plz tell about how a buyer order executed even if they have not sufficient balance in there account to buy any option
Saket please make a live video of trade with stop loss limit orders in both buy and sell orders
Sir i am not abel understand that who place such kinds of orders and placing taget at 1800 . please 🙏 reply
Very nice explanation. I have one question though. You mentioned that this is not illegal, how can a option which has 68,000 volume on average will suddenly have 2 lakh volume. I mean this surge has to be done by someone right? If so isn't that illegal?
It's market manipulation for sure but you can't say anything cause it's not illegal to put orders by fii/dii. It's ethically wrong for sure but nothing can be done using legal methods
@@nseniftybankniftytrader4086 thank you. I now understand it clearly 😊. Thanks a lot. I was searching for this from many days.
Thanks to SeBi
In what way a buyer gets affected at the moment freak trade happens?
For buyer there is no problem. He can mostly only gain from such freak trades
Maybe he can buy a 1920 and sell at 400 very next second but you would've have to be extremely unlucky to put order exactly at that moment
If a buyer is placing buying market order then it would also harm the buyer so always buy at limit
Thank you u for the detailed explanation
Can you please make video about open interest for options trading
What about fresh positions that we take or square off positions at market order ? Is this risky ?
yes that's use limit order for buying too
No use of using sl-l order. If mtm crosses 50% some brokers square off automatically. How to avoid these freak trades
You can hedge your position and keep you position size low so that you don't have to keep SL. You can cut off your position manually. This is one way!
Thanks for education us sir.... 🙏
Saket bahi Very important video but
Hindi me banate to aur samaz aaata
The only solution is to use SL-limit with some gap between SL trigger and limit price
What happens if a freak trade happens because of few traders and margin requirements shoot up for people like us?
Will it be autosquared off ?
Then we also lose huge money? Right?
You will get margin shortfall penalty and some brokers auto square off and some gives warning confirm with your broker
@@bhuvneshh How does zerodha act? Any idea?
Can’t we place sell orders without stop loss of any kind and buy a far away otm as a hedge.
Stop loss will never Trigger in a freak price and any loss in selling will be compensated by the buy order ?
Also will reduce the margin requirement.
In freak trade the buy position price will not increase
@@sudiptapaul7243 sell order will also not execute and the price will normalize to where it was before. In other words status quo after the one second spike.
The buy position is to hedge the naked sell option in a normal price movement
Has nothing to do with the freak trade
If any of trader's mtm surpassed you available cash balance your broker will auto square off your trade with market order....it doesn't matter if your net mtm is even positive 100000+
@@manupandit3864 no the buy strike is different so it will not protect sell leg
@@bhuvneshh 1) sell leg is already protected FROM THE FREAK TRADE as there is no stop loss
2) after that the price will normalize and come back to the old level
3) now as in normal trade if the market moves against you say you sold a call order and market is moving up the sell call will start giving loses
4) now there is unlimited loss as there is no stop loss IN THIS LEG
5) the buy call order will start to give profits and compensate for the loss in the sell leg
6) both may not move in tandem due to delta but near to expiry max loss will be equal to difference between the two strike prices.
7) works like the stop loss.
8) this is my understanding the authors may vouch or correct me if I am wrong
What if we dont place any stop loss order?
Broker will autosquare off or give warnings when your margin will be over and you'll get margin shortfall penalty
Also you don't when it's freak trade and when not so if you will not keep sl you'll loose in normal trades too lol
Exchange should freeze the option price if it crosses the option price of next strike. In this case, price of 37100 pe should have been freezed as and when it crosses the price of 37200 pe
According to new SEBI'S circular, there will be no circuit limit for options
Does market order create this problem? Usually when we enter, we used to place market order
Yes
Edit- but it won't happen generally it requires someone to push prices to where many stop loss are present and fii,dii does this
Auto square off (MTM losses exceed 50% your position ) is even more scary because Stop loss limit order is of no use then.... Dear Saketh, kindly confirm if even for freak trades this would autosquareoff.... thanks
Yes sir even in freak trades the broker will square off your postions
Thanks!
Saket and team very good work 🎉😀
yes saketh this video helped all of us..Thanks and reg ..Dr Prasanna
hi bro, if i put SL L and if my sl jumped, is there any chance of wipeing
out entire capital? pls reply bro,i stopped intraday after seeing freak trades bro
the person 'F' really got F**d up on sep 3rd :)
Thank you
My question is that , I do option selling in Zerodha with less margin like 45000, through hedging.Will my positions get auto squared off due to these freak trades in case of margin fall?
no
1st you'll get margin short fall penalty
2nd I don't think it will need to autosquare off because your sl would've already hit and in case you don't have any sl it will give warning for some amount of loss and then autosquare off
Is there even a slightest of possibility of SL Limit order getting executed at market price? I read somewhere a SL limit order also suffered due to freak trade (Not talking about the price missing the trigger, talking about it actually getting filled at high market price)
no highest you can get is the limit and I advise keeping trigger price 400 limit 500 (just in case freak trade happens at worst you'll get 500) and if it jumps then your order will not be filled and if it's legit (not a freak trade) price will gradually rise like it will not jump 100points in 3-4ms(exchange takes this much to fill orders)
@@bhuvneshh what if I want imm fill through SL - Limit
< Option Selling >
Who will got loss in Freak trade buyer or seller?
People selling at those high prices will gain
@@optionables big players & institution sitting to sell in higher prices they will win always👎
Freak trades can happen on both upside and downside. But downside is limited.
Now a days these are "Frequent Trades" not freak trades
What if we place SLM for buying an Bank Nifty option worth 300/- maintaining 8500-9000 in my trading account.. ??
Will my buy order execute at such a high price of 1850 or 1921 etc ??
yes
Infact I think you get peak margin penalty too on top of the freak trade loss
@@bhuvneshh ipersonally don't use SL and enter ,exit basket orders at market price usually,so now I'm worried to use basket orders and also icant place SL-L as ideploy spreads (all positions should be executed without any one order delay)...any possible solutions ?
@@bhuvneshh
Without sufficient margin how can the order be executed.. big reason to worry..
Generally zerodha shows " order rejected due to insufficient funds" , if we wanted to execute an order which requires more than the funds we have in our trading account..
Hi Saket,
Today I have talked with zerodha support and they told me even after putting the Stopploss Limit order if my M2M some how cross the 50% of the position then they will auto square off the position.
In that case for a 1 Lot of Bank Nifty option I am going to loose more than 80K .
What is the best possible solution for this problem according to u?...Please ans
Sir best vedio ....
What about non SL orders like Entry and Exit? Market orders are not recommended?
Preception change by watching these video
Stop Loss limit vs SL market order (who wins with freak trades).. thanks much for the detailed video (must watch for beginners)
Awesome 👌
Baat ye hai ki un sab logo ko pata kese chala ki iss hi level pe SLM order lage hai?
What is sebi doing about this situation..
If we use hedging it will benefit us
no because freak trades normally happen at one strike price and hedges are on different strike prices also even if in some 1 out of 100billion chance both your legs get freak trade at exact same second (it's practically not possible I mean it is but it's very very unlikely you dying by you house collapsing or getting in a fight with someone is more so it's highly unlikely) even then no guarantee both freak trades will be of same magnitude and even if they're there's no guarantee you'll get best price on your buy leg maybe it'll trigger at 10points higher and your sell leg gets filled at 1000points higher so short answer no
Nice one
If HNF people know 68000 orders available & with their huge money place 2L orders take price higher. How come this is a fair game ?
Thank you for helping small retailers to escape from freak trades. _/\_
We should fight with enemy (freak traders) rather than searching the alternative, why sebi is not acting we should question this first
amazing
Please hindi m bhi bana diya karo..