What is Causing Freak Trades?

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[@VRDNation]

Don't forget to subscribe to our New Channel for more real-life trades and deeper insights into the world of trading: kzbin.info/door/rAEUt-BYT-WbxF_pdcmzkA

[@sunil244]

current regulators SEBI , Finance ministry and RBI alongwith teh govt is just killing the markets ..

[@shodhankakirde2298]

This happened today in TCS 26th August 3680 PE which is liquid when suddenly the traded price jumped to something like 59 while the average trading was happening at 37

[@Pradeep-G]

I recently heard about freek trades, I was wondering how & who might be placing such orders, why SEBI or NSE not taking any action. You cleared most of my doubts. One thing I have to say, there is no crap in your channel, all the contents you are posting are genuinely needed for traders & investors. Thanks for brain storming.

[@yubrajbhoi1986]

The main role of the exchange should be to provide liquidity and curb high spreads. Hell Americans have market makers just to provide liquidity. But in India it is exactly the opposite SEBI is killing liquidity with new rules everyday and it is screwing up everything.

[@otomackena7610]

Classic case of "if it ain't broke, dont fix it"

[@snay6869]

exactly 💯

[@Delta.Hedger]

FYI, fno volume in NSE is highest in whole world. In options, the volume has more than doubled in last few months. SEBI doesn't give a damm to all this noise regarding margin.

[@ShyamEnterprise]

Kuch farak nahi pada hai liquidity high hi hai sabme kisme kam nahi hui hai phele saal se zyaada hai aur log bhi trading kar rahe hai alag style me kyuki trading addiction hota toh yeh nahi chute ga.

[@prasathbala225]

Even if we do hedging one particular strike price was getting spike abnormally how hedge will safeguard the capital

[@bmanikanndan]

I had this question for very long. Thanks for speaking about this topic.

[@prashp143]

Market orders create liquidity without limits. If everyone starts using limit orders, these kind of bulk orders won’t function and these kind of freaky incidents won’t happen too. If that 300000+ order wouldn’t have got the price it wanted, it wouldn’t have been filled. So always use limit orders everyone. Limit orders are the actual factor which drives the market. For example: if there were more SL limit orders with the limit of let’s say 200, on the day where the option went up to 800+, the buy order with 300000+ quantity wouldn’t have found sellers at that price (800+), so it wouldn’t have got filled. This way, limit orders would’ve forced the liquidity to be in the favourable limit. Market orders are considered as panic decisions by smart money. SL Market order is the one habit (weakness) of retailers that is highly exploited by SM. So please spread the word to encourage SLL orders among retailers. This will really strengthen the overall scenario for retailers.

[@rohitbisht1365]

😂 illiquid script? 16450 was ATM option of the most traded derivative instrument across whole Asia. If atm nifty option is illiquid, we better shift to American markets.😂

[@snay6869]

big institutions are making big bags with these liquidations

[@abrahamgideon]

If that is illiquid what then is a liquid scrip i wonder?

[@Rafiqul_il]

Thank u for explaining in detailed manner it was a knowledgeable experience.

[@kapil44021]

Very nicely and practically explained...and suggestions are to the point.. Thanks as always

[@MegaMytest]

Thank you so much for this important lecture sir .....this lecture should be widely spread infact the SeBI n Nse should spread this lecture to all traders...

[@pqpowieur]

Guys let's not trade on 1st September. #bansebi #saveretailtraders #bringbackmargin

[@dhruvsmashhero741]

Such an important topic,,Sebi is just for namesake in today's market,,Their actions are completely against interests of Retail traders

[@himansukisan4160]

Please correct me if Im wrong --- Hedging wont work in this "Freak Trade" scenario, since as we saw only 16450CE moved exponentially, there is no such movement in any of the OTM CE strikes which one would have bought to hedge the trade.

[@vishnuvijayvs4057]

Proper hedge requires no stoploss trigger . That he mentioned here, not about taking hedge for margin benefits

[@chandanpatra9856]

@@vishnuvijayvs4057 well if the underlying assest dididnt move and just a particular option strike price get moved like in 16450 ce abnormally then i guess no proper hedge can save us .....bcoz the assest price didint move so how will the hedged strike price will move...only the strike price thats being manupulated by HFTs will move

[@himansukisan4160]

@@godwinhr Im sure you do understand that the freak trade will mess up your MTM of your hedged position, and if you dont have enough margin (Dont know how to define enough in such scenario) to cover such freak movements then RMS will kick in and your notional loss will be squareoffed as realized lose. I wont put my bet on brokers RMS to hold my position, it is not in my control.

[@otomackena7610]

@@chandanpatra9856 dude you are not placing a stop loss market order if you are hedging and the price doesn't stay at those freak high price for long, it come backs to normal price.

[@chandanpatra9856]

@@godwinhr bro I think you didn't get the actual point here... It's not about hedging.. Hedging can only provide you cushion when the underlying asset is moving bcoz then Only your hedged strike price will get moved.... Hedging doesn't mean that you shouldn't put stop-loss.. Stop loss is necessary. The movement occurred only in one strike price.. So how the hedging will work? Explain it..

[@arpansrivastava1351]

Illiquid options!! Today it happened at banknifty ATM . ( I was just saved because i exited few minutes before) Also hedging is not going to help during these freak trades as underlying doesnt move... So OTM buy will not move in tandem with atm options. Only thing to save us , dont trade. Thats what sebi wants..

[@Mahi-fb2nz]

It's request plz upload more and more quality videos on trading psychology , thanks for your efforts

[@youngking1686]

One solution is to have a mental stop which again adds to trading difficulty or an Algo to manage stop based on spot price movement and fire stop order if only required not keeping it on the exchange.

[@sanjaywise681]

The way of explanation is very good...

[@anishdey9948]

After 1st september, due to less margin , liquidity will crunch even in some actively traded options. So these freak trades will become common .

[@vandankumbhat5391]

Real good advice towards the end. Please support no trading day on 01 september.

[@aruljebin]

Why

[@MrPulakananda]

Sir, I have some questions. Does the price spikes come in all the options? If I hedge my position will it happen with both positions?

[@vikramdeshmukh6373]

To circumvent a freak trade, is there any guideline about placing SL-L order. Only recommendation heard was there must be a decent gap between a trigger price & sell price. If I expect Sell to happen at 200; I understand SL-L must have SELL price mentioned at 200, what could be trigger price recommended here ?

[@rizwanmahmood5935]

Useful video. Have one query. If a person keeps adequate additional limit and does not put system stop loss (slm or sll) and manages stop loss manually, will he also get impacted by such freak trades.

[@mayurdhamale4583]

Beautifully explained, current situation is such that the exchange doesn't want retail traders to earn in the market. Very subtly the rules are getting adjusted to fit the needs of big traders.

[@abrahamgideon]

Yes but why is it being done? Who is twisting SEBI and NSEs arms to make this happen?

[@flymachine8227]

Very Important Video..Need Level Playing field! It's a new way of Corruption!!!

[@panchasanguparakalarajan8948]

Thank you sir for sharing your experience with us.

[@csaadirajanedi6026]

wow,superb information sir, it was ecstatic,thank you so much

[@sujayananthakrishna5930]

Very educative video!! Thank you sir!!

[@vishalsrane]

Thank you Sir 🙏 thank you for educating us

[@aravindbadveli3406]

Good information video 👍👍👍. Please also make video on new SEBI rules w.e.f from sep 1st and impact on traders

[@vineeshsharma]

You are a very genius person sir

[@sravan495]

Hedging is better than stop loss .... thanks sir 🙏

[@suyashG1x]

Will it be better to avoid options altogether and instead trade in stocks only if such abnormal fluctuations are going to happen? I am asking from pov of risk management. Atleast I will avoid depleting my account. Someone please explain on this 🙏🏻

[@ajaypanchal2614]

Hello Sir, Agar me koi call ya put buy karta hu bina stop loss place kiye aur order execute hone k baad me koi freak trade hot h us call ya put me, to muje koi loss hoga? Muje us case me janna h jese price suddenly upar se niche aa jaye aur vapas upar jaye vahi price pe. Like 400 se 1 pe aur vapis aa jaye 400 pe. Is case kya mujhe loss hoga stop loss nahi lagane pe. Ya price normal ho jayega within second freak trade me, to loss nahi hoga. Please advise me. Thanks in advance.

[@subhashch7581]

Nice video... Learned new things. Thanks a lot ❤️❤️❤️❤️💐💐💐💐🙏🙏🙏

[@generic_1991]

Sir, u have explained the freak trade really well...i have a question on hegding....i am a beginner...for example Bank nifty spot is 37000, i expect market to be bullish...so i buy 36800 CE and sell 37000 CE...(assume both i have picked the strike price as illiquid stike price) basically hegding my position...i dont put any stop loss for both buy and sell order...if by chance there is a sudden spike or freak trade...will the broker square off my position? since i have not put the SL...? or will my position will be still active, irrespective or sudden spike(since i dont put SL)? kindly, plz share ur valluable thoughts on this?

[@demonic_soulsyt1848]

Thnxs bro that explains clearly everything.

[@gvrgvr1722]

I like these kind of info videos from ur channel.

[@premzaveri2337]

Is this increasing due to algo trades?

[@SaintAlphaOmega]

14:00 Reason to switch to stop loss limit order

[@prasadg1939]

Thanks a lot for sharing.

[@prabhus9750]

Hi. Thank you for the knowledge of freak Trades. I have seen few cases on charts n even price on zerodha. Like nifty option. Coal india Ce and latest being today's SBI Life 1150 ce premium ... I was wondering how it's happening n was confused whether to take trade in SBI Life CE option. Looking at such discrepancies I let it go n didn't take. . thanks a Ton. Prabhu Savalagi Hyderabad

[@mr.perfect1191]

In the money me bhi ho rahe hai uska kya

[@otomackena7610]

The brokers can come up with solution like stop loss market order with range or percentage from trigger price at which you are willing to do market order.

[@vinaybhat7670]

Exactly..but they just don't want to do so..🙄

[@davidmondol]

so practical,,, excellent sir

[@harshaponnam6943]

Tq for frequent videos

[@interesting_stuffs]

Nice explanation. I think that the root cause is doing Naked Options and it is pitiful to see that only retail traders do that. The takeaway for those guys who did lose ₹ in Freak Trades is to avoid doing Naked Options atleast now, very costly lesson learnt, good for them.

[@champamanmishra9695]

Sir please support no trading day on September 1

[@muthukathir7750]

Very useful information. Thanks a lot

[@Mindpeacedebtfree]

Thank sir, for teaching, us when will new channel be launched, for live trading videos.

[@gauravgupta9825]

Awesome video Sir!!!

[@saifulim450]

Very deep information I got from this Video, thanks a lot

[@kidsstoryhub007]

yo yo yo yo

[@anishjha7059]

Angel broking chart showed the 803 price on its chart, it's zerodha where it isn't shown.

[@tejavardhan8046]

Sir please make a video on how to build a trading plan ,I don't know what I am doing,very confused 🙏🙏

[@Maddy12f]

Awesome video, thanks for the information

[@akarshjohri9599]

I have not faced such kind of problem as I only trade in the cash equity segment that too in highly liquid stocks.

[@Sandeep-si6em]

I would suggest to mail your findings to Sucheta dalal who had exposed the 1992 scam.

[@rohitsharmasir]

Informative 👍

[@hrishi6260]

Even if I was putting limit Order. It was executing on avg price.

[@gamblertrader1992]

always use limit order.. market order only in if there is liquidity

[@vinaybhat7670]

Broker should provide SLMR(Stop Loss Market-Range) where we can set SLM upto some Range. If price jumps over that Range, our order should not be executed..

[@VreshamBurugula4499]

Yes sir hedging is best to Stoplose market

[@dipankarchoudhury2142]

I hope u have good connection and relation NSE. Plz do something.. otherwise retailers going to vanished.

[@sureshv8823]

We can’t win against big fish in the market so better to go for protective trading..

[@hotcool030]

Thanks a ton. That's all I can say sir.

[@PRANITGONDHALI]

What if we dont put sl,will order will be executed due to margin problems in microseconds? In option selling hedging.

[@vinaybhat7670]

Most probably it won't... KZbinr "Booming Bulls" lost like 10lakh in such trades..he used SLM...later zerodha told him to use SL to safeguard himself from such scenario..😶

[@archergrc5362]

Thank you 🙏

[@vineeshsharma]

Plz make a video on Stop loss selection in options

[@ajaymehta6996]

🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏 Sir, Freak trade me mtm loss 80% se jyada show karega to broker position automatically square of kar dega ??? Sir please reply 🙏🙏🙏🙏🙏🙏🙏

[@vinodshankar86]

Thank u so much.

[@kamalashgovindaraj5245]

Thank you sir.

[@Bhavikjoshi45]

Don't trade between 9:15 to 9:20 but I have seen +100 and -100 movement in 2 to 3 min bank nifty with just to eat out sl from both side .so basically you think the set up is perfect they will first eat out sl then it will give movement according to price action . Let me know if any one facing this thing .

[@dibyokumarpradhan1140]

Is this freak trade happening for option buyer?? where the buy order is getting executed at high price and sold at low price?? If this is the case then brokers need to fix their system. Actually the order should get rejected bcos of insufficient fund.

[@Itsamitkban]

Sir Thanks a lot for this video. I lost Rs. 5000 on 1 lot of Nifty thought I had it hedged with 16550 CE. Now I realise in the worst case I could have lost 35000. It worries me a lot. Someone should do something about this.

[@raghavendravishwas5929]

Yes..any sell position must have a hedge..

[@kaksreen]

Good One!

[@sureshv8823]

Kindly provide more details on hedging

[@1606ramesh]

Today also it happened with bnf 36000 PE ..low - 35 & high 750.. pls check low

[@Tweak_finance]

Great video Sir

[@acharsh]

This was also happened to me when i put SL on ntpc option .... It automatically booked a loss of ₹18000 ..but the price never went where my SL was hit😶😭😭

[@arunkumar-mf5fv]

Sir could YOU Explain about pivot points & CPR VIDEO

[@ska9448]

Price not visible issue is only on zerodha. On fyers its clearly visible

[@tarundhiman5505]

sir 37100 PE ka high aaj 1921 lga h sir. freek trade again hua h aaj . please isko highlight kijiye sir.

[@mriduldas4109]

Sir you r real hero

[@nareshkumar.v6207]

Very useful

[@jitenanand4899]

Use a drawing App to highlight on screen, so that the viewers can focus on the specific area you are pointing at.

[@rohitkannojia5839]

thanks venkat sir

[@idontknowmyname8984]

Yeah even I had similar experience while doing in futures 😅🤣 I will get frustrated

[@learnearn7487]

Sir Please make Video on SEBI new Peak margin And how will it affect in equity and F&O trading

[@pankajmehrotra7623]

Sir, Is sebi promoting option buying instead of selling because the loss under option buying is limited to premium paid? Whether this type of loss can happen in option buying also? Please explain.

[@iiftva]

In option buying your loss is limited to the premium amount.

[@1ndraNugraha]

where is the subtitles?

[@vijaykar1000]

Thanks sir

[@theruraltrader]

Watch today's 36500 ce.. Yesterday closing was around 180 rs Today it's opening price is 101 rs. But the market was around 160 ++ gap up..???

[@VivekKumar-if2ft]

Imagine the luck of the person who got to sell at 800 😂🎉🎉

[@Razrman]

Not luck. It was a well planned exercise.

[@VivekKumar-if2ft]

@@Razrman how?

[@puramravana6500]

Most probably Institutions take advantage as they have access to More ticks per sec compared to Retailers .

[@VikasLohia]

It was not a person but a machine

[@snay6869]

@@puramravana6500 yep maybe they intentionally do that to liquidate people.

[@prasadbm1988]

can we have 2 SLs to avoid that Freak trades? ex: if i sold option at Rs.80, i placed SL-M at 85 and SL-Limit at 90rs... so that next market order is at 90rs... if freak trade happens it goes till 90rs... correct me if am wrong.....

[@TAMILKINKYLIST]

your first sl m order will execute with the freaking buy order.

[@raghavendravishwas5929]

@@TAMILKINKYLIST 😂😂

[@noushadnoush.6918]

Well said

[@balajib8184]

when its illiquid why would it still breach the circuit limits

[@manojim7872]

It's only illiquid, not non-tradable. Say there are 30 sellers with ask's ranging from Rs.50-200 for 100 lots cumulative. I place a buy order for 100 lots at Rs. 200 and simultaneously place an sell order for 200 What would happen?

[@jdsood7101]

Sebi just says,"it is for the safety of the traders"...

[@rajeshdas392]

Its better we should do poctafx trade

[@tarun4084]

Pls make videos regularly