One of the ways to cover yourself from a large loss due to a freak trade while also entering/exiting immediately is to use limit orders with a price higher than the current market price for buy orders and lower for sell orders, he said. This will ensure that you are still placing market orders but also are protected against freak trades. ~ Said by Nitin Kamath, Zerodha Founder
The only way to tackle freak trade is to place SLL with buffer but SLL instead should be logically not too much high or low if everyone starts not placing SLM or market order freak trade will also got out of market because they will not get too much high price to execute their freak trade due to SLL OR Limit order and eventually freak trade will stop happening itself
Sir if I am trading with 50 K and if I have taken a hedge position and sold option that time if freak trade occurred of 2000 points in that case if I ran short of funds for that 1/2 seconds.... What will be my brokers action on this????
SOLUTION TO AVOID FREAK TRADES: There is one solution by which we can avoid big losses due to freak trades. Here is how.. 1. Price Alert - As sir already told place a price alert first. Suppose if your SL is 200, place Price Alert at 190. 2. SL Limit Order - Place SL Limit order with range. Suppose your SL is 200 so usually we put trigger price as 200 and selling price as 200.1 or 200.5. Instead of that select trigger price as 200 and selling price as 210 or 220 (whatever slippage you can bear). Note that this is also not a fool proof plan and you have to monitor when you receive a price alert. But there will not be big losses like SL-M orders. So never put SL-M orders. I hope this will help. Thanks
Sir sbse accha solution hai margin calculate krke demat m rkho hmesha kbhi bhi extra money mt rkho demat n jese m option buyer hu to m average 350premium or 100quntity k hisab s hi rkhta hu demat m margin to freak m jb 1921 price higi mera order rejected hojyege margin n hone s or kbhi loss hoga to limited hi hoga
1. Better to have sell position in contracts in multiples of 500 (eg- 36500, 37000, 37500), more liquidity which means less chances of freak trades. 2. If price continuously taking support or resistance at a certain level in the day, don't enter sell positions in such contracts.(see BN chart on 03-09-21, price repeatedly took resistance at 37100) 3. If capital is not an issue, place SL limit orders with trigger price @1000 and sell limit price @1300, in this way, we can take advantage of freak trades too 😋. Qty is half the quantity of existing sell position. 4. Good news in freak trades is price comes back to normal price immediately, so manage your unexecuted' SLL orders patiently. 5. "Price alert", as mentioned by sir is another technique for our help.
So there is 2 option to put SL 1st SLM. 2nd SLL Solution: Put SLL with very less difference between trigger price and selling price If freak trade happened there are two possibilities. 1st is your order get completed on desired price. 2nd is your order get skipped, so after 1 or 2 sec LTP will come down automatically and you are back in action.
Subashis the way you explained is fantastic. Still there is a another way a seller should add another lots to sell at higher price. Example if someone sells some instrument at 100rs and sl 110-115 We should put another order of selling at 400/500.if freak trades happens we will got benefits of that
If you use algo, you can use SL limit with continuous modification of order to bring it to mean of bid and ask.. for freak trades, you can check whether if the premium has gone out of certain range.. in that case, your algo can either wait for 5-10 seconds or notify you..
Happy teacher's day sir Market me apki wajah se hi aaya hu Aaj bhi yaad hai jab main apko subscribe kiya tha jab apka subscriber 5000 tha You are such a great guruji🙏🙏🙏
Awesome Subasish, really helpful to understand solution for freak trades ... One can start taking positional risk defined strategies, protect downside and trade upside kinda stuff... Of course profits may reduce but chances of saving capital is very high here, pls correct me if I'm wrong... And intraday trade on small qty as well as trade using your suggestions...
Agar kiske pass margin jyada ho to woh usi strike price par ek freak trade ke according ek sell order slm me place kar sakte hein much above your expectation. It's purely my view.
Fyers me bracket order se bach sakte ho kunki mera bhi trade tha usme SL hit ho gaya jo maine price lagaya tha usme hit 🎯 ho gaya tha ye ek solution lag raha hai muje 👍
Dear Shubashish Kindly consider this scenario, if someone has sold 37100 PE at 350 and he must have paid margin amount of 1.6 lakhs and he has only another 20000 balance in his account. Now with this spike of price touching 1921, he would be getting a Margin shortfall alert call from broker and he did not have sufficient balance in account he would be charged MARGIN PENALTY as per New Sebi rules. Will broker or Sebi or NSE charge Peak Penalty margin Default ??????? Kindly reply.
Sir one solution... We can do a SL order with a range.. I.E to keep a range of 5-10 % as a SL range, in this case also 98% of the time, SL will surely hit ..
Happy teachers day sir.aapne suggestions pucha hai freak trade se safety ke liye . To kya hum Option me spread banakar trade Kar sakte hai kyon ki usme loss to fix fo jata hai aur hum trade me Kuch samay tak Ruk sakte hai. Agr freak spike hoga to Kuch hi second me price return ho jayega. Please Answer my suggestion.
Sir ek order types hota hai... (ONE CANCELLS THE OTHER ) jisme hum do order ek sath daal skte hai... Kya hum isko use kr k kisi tarah se Freak trade ka SL manage kr skte h kya?
Sir SL nhi dalte to bhi broker auto square off kr deta hai. mera 2 lakh ka loss ho kr account -ve balance show kr rha hai.. maine console mai jaa kr pucha to wo bole ki hame dusro ko order dena tha and aapke pass itna fund bhi nhi hai isliye hamne auto square off kiya.. Y e kya baat hui bhai... 2 saal ki mehnat gyi puri
Can someone please tell me. That if I buy a banknnifty option at 500 and then I'll go in orders and then press exit. after that it's shows SL or SLM . So I'll place SL order and manually place stopp loss at 480(20 points) below my buying price and execute that.then afterwards it shows triggered price in pending orders. So is it correct way to avoiding a freak trade. ? This is the way to place SL limit order or something else.? Please tell me
So many freak trades but still sebi is sleeping.
IAM GOING TO START TRADING FOR TOMORROW SIR...
BLESS ME SIR ♥♥♥
sebi is putting so much effort to kick retailers and helping the big players ,hats off sebi
Happy teacher's day sir 🙏🙏🙏
You are inspiration for thousands of new traders ☺☺☺❤❤❤
One of the ways to cover yourself from a large loss due to a freak trade while also entering/exiting immediately is to use limit orders with a price higher than the current market price for buy orders and lower for sell orders, he said. This will ensure that you are still placing market orders but also are protected against freak trades. ~ Said by Nitin Kamath, Zerodha Founder
SHADI MUBARAK SIR..
YOU ARE THE GREAT TEACHER IN TRADING COMMUNITY...
🙏🏻🙂❤️👍🏻
The only way to tackle freak trade is to place SLL with buffer but SLL instead should be logically not too much high or low if everyone starts not placing SLM or market order freak trade will also got out of market because they will not get too much high price to execute their freak trade due to SLL OR Limit order and eventually freak trade will stop happening itself
Sir if I am trading with 50 K and if I have taken a hedge position and sold option that time if freak trade occurred of 2000 points in that case if I ran short of funds for that 1/2 seconds.... What will be my brokers action on this????
SOLUTION TO AVOID FREAK TRADES: There is one solution by which we can avoid big losses due to freak trades. Here is how..
1. Price Alert - As sir already told place a price alert first. Suppose if your SL is 200, place Price Alert at 190.
2. SL Limit Order - Place SL Limit order with range. Suppose your SL is 200 so usually we put trigger price as 200 and selling price as 200.1 or 200.5. Instead of that select trigger price as 200 and selling price as 210 or 220 (whatever slippage you can bear).
Note that this is also not a fool proof plan and you have to monitor when you receive a price alert. But there will not be big losses like SL-M orders. So never put SL-M orders.
I hope this will help. Thanks
Happy Teacher's Day Guruji🌴🌲
Sir sbse accha solution hai margin calculate krke demat m rkho hmesha kbhi bhi extra money mt rkho demat n jese m option buyer hu to m average 350premium or 100quntity k hisab s hi rkhta hu demat m margin to freak m jb 1921 price higi mera order rejected hojyege margin n hone s or kbhi loss hoga to limited hi hoga
One of the solutions I would suggest is to maintain low balance in trading account so that trade does not get executed due to margin.
Keep sL limit price at 500 and limit price at 550 so as to give it 50 points space
Happy Teacher's Day sir ❤💯
You are an amazing teacher
1. Better to have sell position in contracts in multiples of 500 (eg- 36500, 37000, 37500), more liquidity which means less chances of freak trades.
2. If price continuously taking support or resistance at a certain level in the day, don't enter sell positions in such contracts.(see BN chart on 03-09-21, price repeatedly took resistance at 37100)
3. If capital is not an issue, place SL limit orders with trigger price @1000 and sell limit price @1300, in this way, we can take advantage of freak trades too 😋. Qty is half the quantity of existing sell position.
4. Good news in freak trades is price comes back to normal price immediately, so manage your unexecuted' SLL orders patiently.
5. "Price alert", as mentioned by sir is another technique for our help.
So there is 2 option to put SL
1st SLM. 2nd SLL
Solution:
Put SLL with very less difference between trigger price and selling price
If freak trade happened there are two possibilities.
1st is your order get completed on desired price.
2nd is your order get skipped, so after 1 or 2 sec LTP will come down automatically and you are back in action.
BN 37100 PE went to 1921 in matter of Seconds with more than 2 lakh contracts traded at 1921.
Subashis the way you explained is fantastic. Still there is a another way a seller should add another lots to sell at higher price.
Example if someone sells some instrument at 100rs and sl 110-115
We should put another order of selling at 400/500.if freak trades happens we will got benefits of that
Happy Teacher's day sir ❤️🙏
If you use algo, you can use SL limit with continuous modification of order to bring it to mean of bid and ask.. for freak trades, you can check whether if the premium has gone out of certain range.. in that case, your algo can either wait for 5-10 seconds or notify you..
Happy teacher's day sir
Market me apki wajah se hi aaya hu
Aaj bhi yaad hai jab main apko subscribe kiya tha jab apka subscriber 5000 tha
You are such a great guruji🙏🙏🙏
Awesome Subasish, really helpful to understand solution for freak trades ... One can start taking positional risk defined strategies, protect downside and trade upside kinda stuff... Of course profits may reduce but chances of saving capital is very high here, pls correct me if I'm wrong... And intraday trade on small qty as well as trade using your suggestions...
Agar kiske pass margin jyada ho to woh usi strike price par ek freak trade ke according ek sell order slm me place kar sakte hein much above your expectation. It's purely my view.
SEBI must take step .After all SEBI saying he is here to protect retail traders
The most amount of freak trades happen in Gold Guinea Mcx.. I have lost too many times due to these freak trades and stop trading Gold Guinea.
Congratulations brother for your engagment.
Fyers me bracket order se bach sakte ho kunki mera bhi trade tha usme SL hit ho gaya jo maine price lagaya tha usme hit 🎯 ho gaya tha ye ek solution lag raha hai muje 👍
Happy teachers day sir.🙏
You are my mentor. ❤️
God bless you.🙏❤️🙏
Dear Shubashish Kindly consider this scenario, if someone has sold 37100 PE at 350 and he must have paid margin amount of 1.6 lakhs and he has only another 20000 balance in his account. Now with this spike of price touching 1921, he would be getting a Margin shortfall alert call from broker and he did not have sufficient balance in account he would be charged MARGIN PENALTY as per New Sebi rules. Will broker or Sebi or NSE charge Peak Penalty margin Default ??????? Kindly reply.
Correct, due to this with in sec RMS TEAM may square off position due to short fall margin, penalty margin will see it will change or not.
Sir one solution...
We can do a SL order with a range..
I.E to keep a range of 5-10 % as a SL range, in this case also 98% of the time, SL will surely hit ..
Today one more freek trade
BN36000pe sep 9..... 80-90 rs... Spike 750 touch
trading ac me approximate utna hi paisa rakho jitne ke order place kar rahe ho..... usse freak trade exicute e nehi hoga
Can we not hedge it with the Sl Strike price for some months.
Sir
SL Limit order with 100 pts SL range can b a better solution for Freak Trades
Why 37100 pe could not hit upper circuit yesterday?Does anyone know?There are circuit limits in f&o.Please correct me if I am wrong.
Happy teacher's day sir your inspiration for us 🙏🙏
Sir the market is moving in unusual ways lately. Sl bohot hit horahe hai selling me bhi
Sir can we Put SL- M and SL order in same trade
Happy teachers day sir.aapne suggestions pucha hai freak trade se safety ke liye . To kya hum Option me spread banakar trade Kar sakte hai kyon ki usme loss to fix fo jata hai aur hum trade me Kuch samay tak Ruk sakte hai. Agr freak spike hoga to Kuch hi second me price return ho jayega. Please Answer my suggestion.
Happy teachers Day sir u r Best teacher For us
Please make English subtitles for your videos it's very helpful is
Sir ek order types hota hai... (ONE CANCELLS THE OTHER ) jisme hum do order ek sath daal skte hai... Kya hum isko use kr k kisi tarah se Freak trade ka SL manage kr skte h kya?
Why not we create a Hedge by buying call or put options long out of money and set a large Target for sale also 🙏🙏
Hedging is the only solution I found. Work in Cash . Start crypto or currency pairs.
Sir SL nhi dalte to bhi broker auto square off kr deta hai. mera 2 lakh ka loss ho kr account -ve balance show kr rha hai.. maine console mai jaa kr pucha to wo bole ki hame dusro ko order dena tha and aapke pass itna fund bhi nhi hai isliye hamne auto square off kiya.. Y e kya baat hui bhai... 2 saal ki mehnat gyi puri
Sir hum sl order laga sakte hai
500 ka sl hai to hum 500 -510 ka sl rakh skte hai
Kyon ki genraly option me itna spike nahi ata
I am very happy because I too came up with same solution on my own
Thank you very much Sir for educating us,Happy Teacher’s Day Sir
agr hm stoploss tight trail karenge ya box order lagayene to kesa rahega
Happy teacher's day sir......
U gave me hope to being a financial independent
Quite Informative video for price action readers, thank you Sir...🙂
Happy teacher's day sir ❤ from berhampur,Odisha
Happy teacher day bahut kuch seekhne ko mil rah h
Thank for limit order buying option, I totally missed tht side
Happy teacher's day Sir 😇
U r always with us to keep learning
Happy teachers day sir, very very congratulations
Happy Teachers Day Sir Ji🖤
Happy teacher's day my Guru ✌️🙏🥂👍
Happy teacher's days sir 🎉❤️
Option buyers k liye kuch zyada risk nahi hai...
Happy teacher day sir you are great
Thank you so much for everything❤ Happy teacher's day sir.
Hello everyone
Cover order me bhi freaky trade ka problem rhega ya wo safe h ??
Congratulations for the Engagement Subhashish ji.. God bless the Couple 💐💐💐
Sir bo or co order use kar sakte he???
Happy Teachers Day sir🙏🙏🙏
Happy Teacher Day to Guru Ji ❤
Sir I think we can place bracket order?
Happy Teacher's Day Subhashish Sir.
Happy Teachers Day Subasish Sir
Sir manually exit nahi kar sakye ka hum
Happy Teacher's Day sir :) With Lots of love from soul.
Happy Teachers day sir 🎉🎉🎉
Sir mai aapka EKLAVYA hu 😊 mko bada hokar aapke jaisa banana h bassssssssssss 😊
Happy Teachers day sir, thanks for learning
sir if we place sl limit order then will it be helpfull?
🙏 Happy Teachers Day Sir 🙏
Can someone please tell me. That if I buy a banknnifty option at 500 and then I'll go in orders and then press exit. after that it's shows SL or SLM . So I'll place SL order and manually place stopp loss at 480(20 points) below my buying price and execute that.then afterwards it shows triggered price in pending orders.
So is it correct way to avoiding a freak trade. ?
This is the way to place SL limit order or something else.? Please tell me
Option buyers ke baare me bhi kuch sochiye...Are hafte me 3 din hi👌
Freak Trade _ Focuse on Buying _ No Market Order _ Only Limit order 🧐
Only one u of the king of stock market
Happy Teachers day sir
Happy teacher's day guruji
I use this idea triger 500 then sl 510
Congrats for ur engagement sir ❣️
Happy Teachers day sir ❤️ se 🌹.
Happy teacher's day sir🙏🙂💐
Sell ka order 1600 above set thik h tuka lega big profit tuka nahi lega next day try
Mind-blowing sir🙏🙏🙏🙏🔥❤️
Reliance 2200ce me bhi esa huva hai sir
Happy Teacher's Day sir ji...❤️
Sir please make a video on Bitcoin and polkadot
Very very congratulations , for your engagement
Happy Teacher's Day Sirji 🔥🔥❤❤❤
Happy teachers day sir ji
Happy Teachers day, 😍😍💯
Trading has become a disaster now for retailers all because of the corrupt members of SEBI
Happy teacher 👨🏫 day … Guru
Happy Teacher day Sir Jee
Happy teacher's day sir ❤️ u have been a great inspiration to all of us ❤️😄☺️..