iCharts Discussions

[bugs3003]

Today a popluar news website posted the above heading and below information:

"A flash 900-point crash in the National Stock Exchange's index Nifty this morning eroded an estimated Rs 10 lakh crore of investor wealth, though for a brief period"

I was a bit confused with this statement.
As per my understanding, if certain investors lost 10lakh crore (assumption stop losses were trigerred) it means certain other investors made a profit of 10 lakh crore.

Am a little new to the market.
Requesting seniors help me to understand this

[rk_a2003]

[amitkbaid1008]

[apka]

blessed are those who hit enter buy order @ market price for any of the scrips just half a millisecond before emkay hit sell.

[rk_a2003]

[sonila]

Rk, one doubt, plz clear it. Suppose, i m long in nf @ 5810 and put a sl of 5780. Then if suddenly a freak trade happens and nf falls by 200 pt for a moment only, then i will loose only 30 pt or more than this ?

[iakash]

Hi Sonila,

Hope u don't mind me answering ur qtn.... i have experience of being on both the right and the wrong side of a freak trade....

One fine day in March this year, i was long in Minifty futures and someone entered an erroneous order of 3512 instead of 5312... this lead to triggering of many stop losses including mine...

Fortunately, my stop loss order got executed at the stop loss price specified by me and not at some freaky low value....

What's sad is, the freak trade got me out of a profitable trade...

Nothing was done at tht time to protect investor confidence and nothing will be done now or in the future... the freak trade was later cancelled by NSE and wiped out of the records but no trades that were triggered due to the freak trade were reversed... NSE just did a patch up work to save their a**

[renga123]

Hi Sonila,

Your stoploss order will not be executed unless trigger price is hit during that particular time. Let's say Trigger price is 5700 and stop Price is 5695, suddenly nifty goes down from 5710 to 5690 (20 point jump), stop loss order will not be triggered by the system. Other possiblilty is that your system is triggered and order is placed at the price 5695 and there is no buyer at that moment, price has come down below 5695 . Hope it is clear.

Regards
Renganathan

[sonila]

[apka]

[haps2trade]

Hi Sonila,

The answer to your question must be YES. Somebody's loss is some one's gain. Just because money, like energy, can not be created and can just be transferred.

In this case let us analyze how one SL gets executed. If you are on long at say 5790 and kept a sell SL at 5745, and if the market goes down, your SL will be executed at 5745 ONLY if some one buys it at that point. If no buyer available, its a simple case that your shares will not be sold at 5745 and thus will have to be sold at a lower value where a buyer is ready to buy.

Hope this hepls.

Cheers

Haps

[haps2trade]

[pkholla]

Friends: Has it never happened to you? Stop loss triggered but NOT executed?.
It usually happens when 2 brokers play games. One runs an algo based buy and one runs an algo based sell to together LET US SAY plunge LT by 100 points in few seconds. So CMP plunges from 1698 to 1598 with brief stops on the way. If you put candlestick display of this period you will see gaps as the price plunges. So, if price plunges from 1698 - 1685- 1666 ...... 1598 and your SL is at 1695, it may be triggered but NOT executed. You need to cancel the existing SL and place fresh order
Prakash Holla

[rk_a2003]

[GHAISAS]

rk - thanks for reconfirmation I had practically experienced this situation. Your reconfirmation have cemented doubts of many including me.

kind regards,

ghaisas.