Is it value going for arbitration in following state of affairs towards dealer for compensation for buying and selling losses of 4.9L?

I confronted extreme losses above 4.9L through buying and selling in SENSEX choices when buying and selling utilizing API. I’ve been buying and selling for greater than an yr and didn’t face such enormous losses. My dealer’s API was responding with non-existent promote place whereas fetching positions through python code. This led to my code repeatedly attempting to sq. off this non-existent place resulting in massive variety of purchase facet positions that was pointless. This led to massive variety of pointless positions which I squared off when it got here to my discover. However already 85k positions have been created and big losses have been already made.

I had not stored money steadiness in my account to take this many variety of purchase facet trades (paid up money is required for taking purchase facet positions as per SEBI). Nonetheless dealer allowed me to take round 85k purchase facet trades with 2L money margin and remaining upto 10L pledged collateral margin. I admit my danger administration through my api code (in python) may have been higher. However technical glitch from dealer facet displaying non-existent positions and in addition dealer permitting extra trades than allowed as per margin guidelines additionally led to this loss. Am i able to problem this loss for any type of compensation from dealer? I already went by Smartodr and Cadreodr platform the place reconciliation failed. The following step is arbitration for which i’ve to pay an preliminary charges. Is it well worth the try and chase compensation on this matter?

Nonetheless dealer allowed me to take round 85k purchase facet trades with 2L money margin and remaining upto 10L pledged collateral margin.

how can dealer nonetheless let all these orders go through even with out full margin? Which dealer is that this?

You may strive, however it’s going be powerful to show I suppose. Most brokers are dishonest.

In India (and perhaps anyplace) it’s a must to monitor the API queries. I maintain monitoring sometimes, and have alerts (messages and sound alerts from PC) that notify me when orders are positioned, and in addition common messages about when sure order executions could also be close to.

Additionally, my algo doesn’t take a commerce if there may be an unusually massive worth distinction btw successive API calls. I put this routine in after Kotak mistakenly gave me Nifty spot worth of earlier day as an alternative of present worth. This occurred 3-4 occasions in Kotak (that I’m conscious of), and occurred with Zerodha as soon as.

how can dealer nonetheless let all these orders go through even with out full margin? Which dealer is that this?

Few brokers prior to now allowed Purchase orders if theres sufficient collateral margin.

@NithinKamath @Meher_Smaran please assist with the reply.

@nithin sir please reply🙏

I had not stored money steadiness in my account to take this many variety of purchase facet trades (paid up money is required for taking purchase facet positions as per SEBI). Nonetheless dealer allowed me to take round 85k purchase facet trades with 2L money margin and remaining upto 10L pledged collateral margin. I admit my danger administration through my api code (in python) may have been higher. However technical glitch from dealer facet displaying non-existent positions and in addition dealer permitting extra trades than allowed as per margin guidelines additionally led to this loss. Am i able to problem this loss for any type of compensation from dealer? I already went by Smartodr and Cadreodr platform the place reconciliation failed. The following step is arbitration for which i’ve to pay an preliminary charges. Is it well worth the try and chase compensation on this matter?

Hmm… shouldn’t have occurred. I assume you’ll be able to apply for arbitration and see the way it goes.

Btw which dealer is it?

@nithin sir, can a dealer enable its purchasers for choices shopping for from money collateral ? Beacuse if brokers permits, one can have a extremely leveraged place even when one has a really restricted money. How will then span and publicity margin be outlined for such commerce if allowed?

can a dealer enable its purchasers for choices shopping for from money collateral ?

They’ll enable.

Beacuse if brokers permits, one can have a extremely leveraged place even when one has a really restricted money.

It’s upto the consumer to make use of it or not, if consumer thinks it’s excessive leverage perhaps he mustn’t use it.

How will then span and publicity margin be outlined for such commerce if allowed?

If one purchase choices then there is no such thing as a span and publicity as shopping for choices require solely premium and is paid upfront.

However @siva sir, whether it is paid up entrance how can a dealer enable from margin? Is it not clear whether or not it’s allowed from collateral margin and if allowed how are the margins wanted to be stored? And if allowed solely by upfront money why did dealer enable from margin?

And if allowed solely by upfront money why did dealer enable from margin?

It may be allowed from collateral margin additionally, few brokers enable and few don’t, it’s as much as dealer to permit or not. Additionally it’s higher to debate along with your dealer, and in the event you really feel you’re proper then you’ll be able to go for arbitration.

@nithin @siva this subject is there with zerodha api too. I’ve confronted this subject a number of occasions and everytime help workforce comes up with we dont see a subject or on the max, please verify your orders earlier than inserting your request. In some unspecified time in the future, i actually misplaced persistence in following up with this ticket.At one level, when the place web page was not up to date for minutes 8 to 9 minutes. I referred to as a zerodha help agent requested her to let me know my positions and informed her to verify orders web page. Even she acknowledged it. You perceive how lengthy the difficulty exists.

I too perceive OMS is totally different vendor and it’s supply of fact and your place api typically not in a position to sync/reconcile/fetch it however this subject is there for ages and it merely ignored with lame causes like please refresh your web page, clear cache and cookies.In actuality with 0DTE trades, we merely don’t have time to verify the orders web page and retry if there are a number of failures almost definitely margin/connectivity.

Though I agree when you’re utilizing api, reconcile everytime with orders api however it’s positively incorrect apply. OR PLEASE REMOVE POSITIONS API AND BUILD IT FROM ORDERS IN UI itself. It isn’t a expensive operation to do.

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At one level, when the place web page was not up to date for minutes 8 to 9 minutes.

Whenever you confronted it? and the way usually you face points with our API?

Though I agree when you’re utilizing api, reconcile everytime with orders api however it’s positively incorrect apply. OR PLEASE REMOVE POSITIONS API AND BUILD IT FROM ORDERS IN UI itself. It isn’t a expensive operation to do.

It isn’t about price, however think about if somebody is carrying positions, then we are able to’t bulid place web page utilizing present days orderbook proper, it breaks on this case.