Zerodha Intraday Trading - Benefits, Charges, Process

OTM options trading - best brokerage

Zerodha has very narrow range of option strikes available for buying. Is this the same problem with all brokers? I'm looking for alternatives.
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Zerodha vs Fyers. Which is better?

I've only used Fyers for trading and never tried Zerodha. Has anyone used both of these? Which is better? What are the services that zerodha provides that fyers does not and vice versa?
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Arbitrage opportunities in options - how options are priced, explained in layman's terms - without resorting to the BS pricing model

Arbitrage opportunities in options - how options are priced, explained in layman's terms - without resorting to the BS pricing model
Alright retards, I've been laid off at work due to beervirus and I've been eyeing and toying with the idea to get back into options trading. I'm writing this post to raise the bar for discussion on this sub, I'm tired of seeing just memes. We'll never match WSB unless there is a healthy mix of dankass memes and geniass discussions.
Now, when it comes to options, I am completely self-taught (completely from first principles, back in 2008, before you autists came up with the idea of watching videos on youtube). Since I am completely self-taught, my perspective will be different from the people who learnt this stuff while studying MBA/finance courses/NSE accredited investing courses. So if what I'm saying is different from what you've heard from the dude who swindled you of 20K for two days of options education or your gay BF's live-in partner, remember when it comes to maths, there are many ways of approaching a problem, ultimately, all are the same - profit means account balance goes up, loss means a loss post on ISB goes up.
Now, I'm assuming that you understand how options work. If not, I suggest heading to Zerodha's Varsity to read up on options. If you're too lazy for this, get your micro-dick outta options, this is a man's game, surprise butt-sex awaits amateurs.
I'm also assuming that you've come to realise that the sustainable way to make money in options is to write options. Unless you've got Trump or Ambani on speed dial to get access to news before it becomes news, YOLOing whatever rent money you have on buying options will blow up your account, eventually.
Writing options also means the possibility of account balance going tits up is a real possibility. You gotta, gotta, gotta measure and manage your risk. You can do this only when you understand options as well as your dick.
Towards this, I intend to put up a bunch of posts (depending on many of you shit heads are still reading at this point) that comment about little things that are more of 'wisdom' than 'education'.
The example below talks about currency derivatives. Why currency? Read below:
  • Lower margin needed. I can short a CE/PE contract with only Rs.2000, unlike the >Rs. 70,000 for index contracts. You get to learn, play and wisen up with an order of magnitude less money than with Nifty or Banknifty contracts.
  • More stable underlying. When you're shorting contracts, the last thing you want is the underlying asset going crazy like a broncho during rodeo.
  • Less autistic crowd in the currency market. While banknifty options attract retards like flies to poop, currency derivatives attract a more educated crowd.
  • Sooner or later, you end up acquiring a more balanced education on economics as a whole, rather than the shit fest that goes on in the local circles.
  • The more contracts you can short, the more strategies you can pursue
  • Decent hedging is possible without throwing away all of your potential profits
  • Lesser stress (anybody else going through premature hairloss or is it just me?) because of points outlined above.
Alright, today, I'm going point how the put-call parity works and by extension, show proof for 'efficient markets' by pointing out how opportunities for arbitrage is pretty much non existent, so you guys can cool it with the whole 'market manipulators' knee jerk reaction.
Alright, to start off, here's the current spot rate of the USD-INR pair:
https://preview.redd.it/qup28ay567j51.jpg?width=452&format=pjpg&auto=webp&s=b79ef1a3480e5cbafa42547143c651397ec57f13
Here's today's USD-INR futures closing rate for Sep expiry:
https://preview.redd.it/krghirc677j51.jpg?width=511&format=pjpg&auto=webp&s=60d52b785baa8a1cd240d0df7949a48c8391ba2d
The difference between spot and futures rates is due to differences in what is construed as 'risk-free' interest rates in the US and in India. Check out this video if you want to understand why the Sep futures is trading at a premium of 27 paisa to the spot rate.
Alright, so the deal is, if you buy 1 futures contract @ 74.49, unless the USDINR exchange rate rises by 27 paisa at the end of Sep (i.e. a spot rate of 74.49) you won't make a profit (ignoring brokerage and stuff). If the exchange rate were to remain the same without any change, you stand to lose (0.27 * 1000, currency derivatives have a lot size of 1000) Rs. 270 per lot. Even worse if the rupee were to appreciate (i.e. exchange spot rate goes down).
Now bear with me if the next few paras are exceedingly boorish, I need to spoon feed people who aren't used to currency derivatives. My strategies are mostly aimed at playing a more risk balanced play, something that yields consistent returns which can be compounded. 10% profit compounded monthly gives 314% growth per year, 3.5% profit compounded weekly gives ~600% growth per year.
Given how the USDINR rate is crashing, one way to profit would be to short a futures contract (duh!).
The orange line indicates the current USDINR exchange rate
As indicated above, if the exchange rate does nothing and remains as is till end of Sep, each lot of USDINR futures shorted yields about Rs. 250 in profit (for something that takes up Rs.3000 in margin, that's a >8% profit in return). Things look even better if the exchange rate were to fall further.
The problem is that things heat up quickly if the exchange rate were to go up. Ideally we would want to hedge against it (which also reduces the margin needed drastically). One way to hedge it would be to buy a at-the-money call (74.25CE @ rate of Rs. 0.555 -> Rs. 555 per lot (i.e 0.555*1000)).
https://preview.redd.it/ze16kyphv7j51.jpg?width=588&format=pjpg&auto=webp&s=a3c2bba9fb314beff309671f03a013e69e08f4e0
Having purchased a call option, the P/L curve now looks like:
The max loss is now limited to Rs. 315
The keen-eyed among you will recognise the above P/L curve as one that matches that of a put option. By shorting a futures contract and buying a call option (both with same expiry), we have created a synthetic put option that would have costed us Rs. 315 (0.315*1000) for one lot.
Now, why go through all of this hassle if we can get the same returns by just buying a put option? Makes sense, as long as we can purchase the 74.25 strike put option at a price lesser than Rs. 0.315 (see above).
Let's see what the put options are going for:
Well, how about that...
The market price of 74.25 puts are exactly the same price as our synthetic put. While the synthetic put came in at Rs. 0.315, the put costs another 0.005 extra to avoid the trouble of shorting a futures contract and buying a call at the same time. This is not by chance, big trading desks have algos (trading bots for the virgins here) that keep an eye out for price disparities. In this case, if someone were to be willing to pay more, the algos would compete amongst themselves to sell the puts at any price above 0.32. And if someone were to be willing to sell a put for less than 0.315, the algos would immediately buy.
The price of the puts move in sync with the prices of the futures and call contracts. Conversely, we can create a synthetic call, and you will notice that the price of the synthetic call works out to be the same as the market price for the 74.25 strike call. We can also create a synthetic futures contract the same way.
The prices of derivatives aren't decided willy-nilly. They are precisely calculated at all times, which forms the basis for the best bid/ask prices. There is no room left for someone to come in and make free money via arbitraging using synthetic contracts.
If you found this insightful, and would like more of this sort of posts, let me know.
Options when used properly, can be used to generate risk adjusted returns that are commensurate with the amount of risk you are taking. If you are YOLO-ing, sure, you can double or triple your money, because you can also lose 100% of your margin. Conversely, you can aim for small, steady returns and compound the crap out of them. Play the long game, don't be penny wise and pound foolish.
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How I Learnt Trading & Investing- My Journey.

I often get asked about how I learnt investing at such a young age. I mentioned a brief overview of how I got into investing and learned the tactics. Here’s the story.
The Idea.
I was 14 years old kid eager to make money. My mom gave me an idea of investing in stocks. It seemed to be practical but I knew nothing about it. Later I asked my mom and dad. They knew very little. I called my aunt who trades every day for the last decade. She told me stuff but it didn’t help either.
The Hustle.
I started watching YouTube videos and read articles of investopedia. I understood nothing. It seemed like rocket science. I then bought a book called the intelligent investor.
This book was for pros. I couldn’t read past a couple of pages. A month passed I was still on square one. I heard stuff like sensex, P/E, index, ROIC but I had no idea what they meant.
Next, I watched YouTube videos on particular terms. I watched a video on what sensex means. What was a stock. How it works. Watching animated videos were quite helpful. I knew something.
A few weeks passed I opened a virtual account on Stock trainer and traded a little. I watched CNBC everyday after I came home from school. Soon I knew the basic ticker symbols. And that’s how I learnt investing, at least the basics.
The First Experience.
In August I had the basic knowledge about stocks through YouTube. But I had no idea how to open a demat account and all. My mom opened it under her name through Icici Bank. Finally, on 6th September I bought my first stock. Coal India x1.
I bought and sold random stocks. I mostly made losses. Over time I learned what fundamental analysis was. I watched animated videos on it.
I soon selected stocks on the basis of P/E ratio, profit and sales growth. It didn’t work. I lost big on TATA Motors.
Then finally I read my first book on stocks. It was called Rule #1. I had to read it 2-3 times to understand. It took me a month to read it.
In August 2018, about a year later I saw a video on technical analysis. I never tried to understand it. I watched it. It was about 1.5hrs long. I was amazed to see how one can predict stock direction based on charts.
Over the course of a few months watched over a 100 videos on YouTube about tech analysis since then. I loved the concept of margin. I came home early after my exam and bought my first stock on leverage.
The Downfall.
It was Infibeam Avenue. I shorted it. I made more money in half an hour than I had made in the entire year.
I was soon addicted. Everyday after writing my exam paper I traded instead of studying for the next paper. Soon my exams were over. I had no time. I had to learn how to swing trade. I spent time analysing charts to figure out my next swing position.
Again I lost a ton of money. I knew I had to scale back. So I set aside a small capital for trading. April 2019, I opened an account on Zerodha as the Icici brokerage was too much.
Over the course I read books like- the intelligent Investor, Stock to riches, how to make money in stocks, how I made over 2 million dollars in the stock market and many more.
So videos and books helped me learn more about stock market more than anything. The simplest way to start is just fucking start. If you’ve no idea what to do, just start. Search. Read. That’s how I learnt investing.
The Sharing.
In March of 2019 I decided to write a short blog on investing on a website called Quora. I was surprised to see the organic reach of my blog. Within hours I got over a thousand views. This encouraged me to write more. Over the course of a year, I ended up writing 450 short blogs on investing on Quora and a couple of books.
In July of 2019 I decided to write a book on my experiences. I brainstormed the ideas and after 72 hours of writing and editing, my first draft was ready. I had no idea on how to publish it. After a few more hours of research and designing the cover I finally published it.
After a few months I wasn’t satisfied with my book. It was only written for beginners. I decided to write something detailed for people who have decent amount of experience in investing. So, 15 days and 400 pages later I finished writing it.
It did pretty good. I got over 5000 downloads. It's free (not trying to promote).
The Pandemic.
The pandemic was a great opportunity to learn more. I'd been watching hundreds of YouTube videos (I got 1k+ offline vids lol).
And I learned more about deeper concepts. Like I'm currently learning about option chain and other forms of data analysis.
The Bottom Line.
At first I made a ton of silly mistakes. I lost money. But I kept learning and recently I started making profits consistently.
It's not a rags to riches story, but it's something most people will go through. I'm no guru or expert, I'm just a guy trying to document his journey.
"The more I learn, the most I realise how much I don't know". - Socrates (or some other old guy).
-Vikrant C.
If you read all that, hats off to you. It was extremely long (and probably not that interesting).
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CAMS IPO Analysis

IPO Filings/DRHP’s are some of the best places to learn from when you are trying to understand the company and industry it operates in. In this letter, we will delve into the IPO filing of CAMS (the largest RTA in the country)

Introduction:

Shareholders

Shareholding pattern is available here. The subreddit does not let us post pictures.

Growth Drivers:

Services provided by RTA’s to AMC’s:

Revenue Model:

In addition, RTA’s also have offer similar services to insurance companies for policy servicing of e-insurance policies. There are 4 insurance repositories in India :

Competitive Landscape

Following are the are the mutual fund registrar and transfer agents operating in India:
See market share and total AUM of top fund houses here.
CAMS services the 4 out of the top 5 AMC’s and 9 of the 15 largest AMC’s. It has been able to manage and hold on to its market share in the last few years: See chart here.
CAMS is the clear leader vs/ peers in profitability with RoE of 29.5% , PAT margin of 19% and witnessed the revenue CAGR of 20% over 2016-19: See chart here.
CAMS also has a 3X higher business per branch despite having only 22% higher number of branches than Karvy: See chart here.
There are multiple reasons for the oligopolistic nature of the RTA industry leading to significant entry barriers:
CAMS also has a significant presence in insurance repository market: Given the miniscule penetration of e-policies, there is a significant headroom for growth in this market.

Risks:

CAMS Overview:

Business Structure:

See chart here.
CAMS operates in 7 business verticals namely: Mutual Funds Services Business, Electronic Payment Collection Services Business, Insurance Services Business, Alternative Investment Fund Services Business, Banking and Non-Banking Services Business, KYC Registration Agency Business and Software Solutions Business
Mutual Fund vertical services
Electronic Payment Collection services:
Manage end-to-end automated clearing house transaction and electronic clearance services and service mutual funds, non-banking financial companies and insurance for automated payments
Insurance services:
Scrutinizing and processing of applications, training and onboarding of new insurance agents, submission of proposals, scanning, indexing and data entry, reminding policyholders of payment receipts
Alternative Investment Fund Services:
Similar to MF
Banking and Non Banking Services
Customer interface and back office processing
KYC Registration Agency Business:
Maintain KYC records on behalf of capital market intermediaries registered with SEBI, eliminating the need to repeat KYC procedure.
Software Solutions Business:
Software solutions business through subsidiary, SSPL which owns, develops and maintains the technology solutions for mutual fund clients, with a team of 362 people .

Employees:

Dividend Distribution Policy:
Notes on financial information:
Valuation :
Other comments:
Given that the growth in the CAM’s business with be primarily driven by the clients’ AUM growth , unless CAMS acquire more clients (which looks difficult to high entry barriers) and low pricing power, the earnings growth in the future will be largely in line with industry AUM growth.
Note: All the notes are based on the filed CAMS IPO prospectus , please consult your financial advisor for advice before investing in any product.

P.S - Apologies. A lot of the charts are images that cannot be posted on this subreddit. However, all of these are available on the source article - https://www.thegalacticadvisors.com/post/computer-age-management-services-decoded.
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Reviews of Brokerage products and services thread for month of October, 2019 - Request or post reviews here.

You can ask for a general review of a particular product or service that you are researching - "Is X good? Is it recommended for long-term delivery trades?", but please avoid asking for personal advice. The discussion is for consumption by a broader audience. For advice regarding your personal situation (like "I am Sharmaji ke padosi ka beta, and I need a broker to do my YOLO trades."), the bi-weekly advice thread is recommended. Personal advice queries and comments will be removed to ensure that older threads provide sufficient historical reviews on products and services.
Reviews posted here can be relied upon by newcomers to evaluate customer experience. Please confine the thread only to reviews or requests for reviews of products and services.
Previous Links
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Sebi mulls lowering cost of derivatives trading

Brokers said they could end up paying 30-35 per cent less in initial margins.
The Securities and Exchange Board of India (Sebi) is looking to revamp margins on derivatives trading to reduce costs for market participants, said two people aware of the development. The regulator will consider a single margin system that will help those who trade in futures and options to hedge their share portfolios. Brokers said they could end up paying 30-35 per cent less in initial margins and trading costs could drop 5-10 per cent for others, depending on the nature of their bets.
Sebi and stock exchange officials discussed the matter in the last week of October, the people said. Market participants have been lobbying for such a move on the grounds that margins in India are among the highest in the world. This is said to be one of the factors behind foreign portfolio investors (FPIs) preferring to trade Indian derivatives in offshore locations such as Singapore instead of on-shore.
The regulator didn’t respond to queries.
Derivative market traders currently pay two margins — standard portfolio analysis of risk (SPAN) and exposure. The first is an upfront margin that traders pay at the time of placing trades, a percentage of the value of the trades as calculated by the SPAN software. Exposure is an additional margin that brokers collect from their clients for trading in derivatives at the time of initiating a trade.
The regulator and the exchanges are looking at scrapping the second and retaining only SPAN, the people said. An increase in SPAN margins will partially offset this, benefiting hedged bets.
“If the proposal is implemented, several traders using hedging strategies will end up paying substantially lower margins since SPAN margin is calculated at a portfolio level,” said Chandan Taparia, derivatives analyst, Motilal Oswal Securities. The exposure margin, on the other hand, pertains to that particular trade. “This is a welcome step since such hedging strategies carry limited risk and hence would not be subjected to high margins,” Taparia said.
Brokers said a single margin structure will help individual traders bet on options trading strategies at lower cost.
“On Indian exchanges, retail traders don’t trade option strategies as the margin requirements make them non-viable even though the maximum risk is limited,” said Nithin Kamath, founder and CEO of Zerodha. “With the new proposed margins, we would be enabling retail to trade options through strategies, which have limited risks.”
The regulator had received several representations from industry bodies, including FPIs, to rationalise the margining system for the derivatives market. In the run-up to settlement, margins on some stocks surge as much as 100 per cent of the contract value whereas the global standard is 10-20 per cent.
“The idea of Sebi was to simplify the margining structure and also give some benefit to genuine traders who use derivatives for safety net purposes,” said one of the persons cited above. “However, Sebi is planning to tweak the existing calculation for SPAN margins by increasing the multiplier. This would mean SPAN margins could go higher in lieu of exposure margin.”
A single margin structure will help market participants allocate capital more efficiently.
“Until now, introducing a single margin wasn’t possible since BSE and NSE do it at the exchange level. However, with the introduction of interoperability before the clearing corporations, such a step has been made possible,” said a senior exchange official. “We have also represented to Sebi not to increase the SPAN margins substantially higher since an internal study done by us showed current SPAN margin calculation covers losses that could occur in 99 per cent of scenarios.”
However, those punting on highly volatile stocks are unlikely to get any relief from the scrapping of exposure margins, said the head of derivatives at a domestic brokerage.
“Such contracts are currently subject to more margins, including additional surveillance margins (ASM) and bonus margin for highly leveraged stocks,” the person said. “Our sense is that Sebi will continue to charge the additional margins on such counters.”
About 30-40 stocks are subject to additional margins. In October, Sebi proposed to impose 35 per cent higher margins on the contracts of companies where more than 25 per cent of the promoter shareholding is pledged. This impacted nine counters including Bajaj Consumer, Dish TV, Sadbhav Infrastructure and GMR Infrastructure.
https://m.economictimes.com/markets/stocks/news/sebi-mulls-lowering-cost-of-derivatives-trading/articleshow/72016315.cms
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Upstox or Zerodha ?

Both these discount brokerage companies have the same model of business
I am thinking of opening an demat and trading account in Upstox as it has free account opening charges and application can be done online
Are there anyone who have used both
Can you recommend from these for those who are just starting out and would like to just taste live market with little money
Are there any good features that i would miss with zerodha if i choose Upstox ?
submitted by shaan_t to IndiaInvestments [link] [comments]

Samco vs Zeordha Demat Account Charges Comparison

Are you looking for the best stock broker? Compare trading and account opening charges between Samco vs Zeordha by using Zerodha margin calculator that will help you to choose the right discount broker.
Source: A Side-by-Side Comparison of Samco vs Zerodha
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Margin Trading With Zerodha - 20X Benefit  Intraday Trading [LIVE] Zerodha Margin Leverage Up To 20X Times - TRADING ... ZERODHA Best #BASKET ORDER #Live Margin New features ... Zerodha Brokerage & Margin Calculator in Tamil Zerodha Vs Fyers  Margin, Brokerage, Trading Platforms in Hindi

Zerodha Trading Segments. Zerodha allows trading into a lot segments. The segments include Equity (Intraday, F&O, Delivery), Trading commodities on MCX, Currency Derivative trading. Zerodha Brokerage Charges. Zerodha is one of the first free flat brokerage player in the market. They were one of the few to change the tide from full service Zerodha Intraday Margin can go up to 28 times which is really higher than many other brokerage firms in the country and especially if you compare it with the discount brokerage house. This makes Zerodha Intraday Limits 28 times more than what you have in the trading account. Zerodha Options Margin. Now, let us discuss the margin requirements one needs to be aware of while you trade options on Zerodha platform.. Buying Of Options – While buying calls or puts, a trader’s trading account must have the required premium in it. There is no additional leverage provided by Zerodha on buying equity and currency options. A market order is an instruction to buy the specified quantity of a scrip irrespective of the price it is available at. Since trade-to-trade and debt category instruments are usually illiquid scrips, market orders are blocked. Brokerage calculator Margin calculator Holiday calendar. Updates. Z-Connect blog Pulse News Circulars / Bulletin IPOs. Zerodha Broking Ltd.: Member of NSE & BSE – SEBI Registration no.: INZ000031633 CDSL: Depository services through Zerodha Broking Ltd. – SEBI Registration no.: IN-DP-431-2019 Commodity Trading through Zerodha

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Margin Trading With Zerodha - 20X Benefit Intraday Trading

For Training Please fill form for more details https://forms.gle/UzdKX9koTfeo7AG16 UPSTOX Account Opening link http://upstox.com/open-account/?f=394Y ZERODHA... Zerodha Brokerage & Margin Calculator in Tamil #stockMarket #shareMarket #IntradayTradingTamil #IntradayTamil #TradingStrategyTamil #NiftyTrendTamil #BankNiftyTamil #CrudeOilTradingTamil # ... Check out this video on the comparison between Zerodha, a leading Discount broking brand versus StoxKart, a recently introduced discount broking initiative from the house of SMC Global. This ... Undoubtedly, a discount broker can either offer you with impeccable trading experience or can quickly wind up your trading or investment plans. Hence, selecting the right discount broker holds a ... Check this detailed Hindi review of Zerodha Intraday Trading. Zerodha charges low brokerage, as a discount broker, however, a lot of beginner traders need so...

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