Best Website for Virtual Trading

Introduction

 Guys for several years i have felt the need that in India we need to have a good virtual trading platform right a platform where beginners can come they can practice they can learn without losing their capital without losing their money so my team and i have always been on a lookout to find a good platform a decent platform where beginners can come they can practice they can feel good about what they’re doing and then they can transition to the real life trading and i think we have found one so the website that I’m talking about is neostocks.com now here are the few things that we liked about this website
number one thing is that it is free.

right it is absolutely free you don’t have to pay anything second thing which stands out about this website is that it doesn’t have any clutter or advertising
right so if you go to any other platform like moneybuy.com or any of these websites you will see that you know there is an advertisement here there is some pop-up here and you know there is something or the other which will keep distracting you from learning so that is something that we liked here, the next thing which is very very interesting to see
is that they are providing
tick by tick data now for many of you beginners you probably will not realize how important this is and how difficult it is to have a platform where they can
provide you this kind of data because most of the virtual trading apps that are out there they are giving you a 15 minute delayed data right sometimes it
can be five minute delay data in some cases or 15 minutes but I am not aware of any website that is providing you with the tick biting data and i don’t know exactly how these guys are doing it because buying tick by tick data from the stock exchanges can be very expensive right and we ourselves explored this option
few years back and uh nsc you know basically they charge about you know 20 25 lakh rupees per year for providing this kind of data so clearly this is a big standout for this platform that they are able to provide the techno tic data the other thing which is also fascinating here is that they are able to provide virtual
trading in both futures and options now. i have not seen any website out there that gives you the capability of doing virtual trading in options so this is of
course that’s a big deal and they also have some other features that you can you know play around with they have given some advanced strategies you can
just play around with them and uh you know it’s setting a well-built well-designed website so guys uh the intent of this video was not to you know do some kind of a promotion this is not a sponsored video by the way we don’t do any kind of a promotion or you know sponsorship in our channel as you guys know the only intent was to point you guys towards something that we liked, right, so if you use this website give us a feedback that whether you liked it or not or if you know any other website which is better than this website.

do let us know because we will be more than happy to make a video about that as well right so we will wait for further feedback from you guys uh and if this
happens to be a great platform as we think it is then we will make another video where we will talk about  you know the features the different features of this particular website and how to use it but that will be after we have vetted this platform with the help of you guys…

Introduction

Iceberg orders in Zerodha are a way to break down a large order into multiple smaller orders.

Let’s say, you have to buy 10,000 shares of Reliance.

So, instead of placing one giant order of 10,000, you can place 5 orders of 2000 quantity each using Iceberg orders.

Iceberg orders were originally created for big institutions and High Net Worth (HNI) clients who deal with huge order sizes and they don’t want people to know that they’re placing these big orders.

Hence, they broke the big quantities into multiple small orders so that people would not know that there is a big participant out there and hence their actions should not influence the price of the script that they are trading.

Now, thanks to Zerodha, Iceberg orders are available to retail traders as well.

Let’s take an example

Please watch the video below to understand how to place Iceberg orders but if you can’t just read on.

Iceberg orders look like this.

In this example, notice how an Iceberg order can be used to break down the quantity of 1000 into 4 orders of 250 quantity each.

So, what happens when you place this order?

Zerodha will place the first order of 250 quantity and wait for it to get executed.  If it executes, Zerodha will place the second order and so on and so forth. Basically, these orders are placed sequentially – one after the other.

Important facts about Iceberg orders

Brokerage

Breaking a large order in multiple smaller orders look like fun and convenient but there is also a cost associated with it.

Because for every leg of the order, you have to pay separate brokerage.

So, if we take the same example as above, if you had place a regular order of 1000 quantity, you would have paid only 20 rupees in brokerage. However, if you use Iceberg orders, now you have to brokerage for each leg (i.e 4 x 20 = 80 rupees).

This might seem like a small amount now but if you a regular trader, then this will add up over time.

Validity

You can also specify the duration for which the Iceberg order will be valid.

In this case, for example, you can say that if my order doesn’t get execute in the next 5 mins, just cancel it. This feature might be useful for those who are expecting a quick move in a stock but if that doesn’t happen, they don’t want to stick around for that.

Just cancel the whole things and move on to the next trade.

Benefits of Iceberg Orders

Let’s summarize the benefits of Iceberg orders:

  • Breaks down a large order into smaller parts
    • This can be very helpful for big institutions and HNI traders who do not want everyone to know that they are buying or selling a big quantity
  • Great for overcoming order freeze limits
    • Exchanges have restricted the maximum quantity for derivative contracts
    • For Nifty, it is currently 2800 and for Bank Nifty, it is currently 1200
    • So, if you have to place an order above this quantity, you need to manually place several regular orders
    • But with the help of Iceberg orders, you can just place one order that will take care of the problem
    • This is of great help for expiry day trading, where the quantities can easily go in thousands
  • Canceling one leg automatically cancels the rest
    • If any leg of an Iceberg is cancelled, all the remaining pending legs that are yet to be placed will be automatically cancelled.
    • Similarly, if the price of any leg of the Iceberg is modified, the new price will automatically be applied to all the pending legs

Limitations of Iceberg Orders

Here are the key limitations of Iceberg orders

  • Higher brokerage
    • As we saw, brokerage is charged separately on each leg
    • Therefore, the brokerage charges will add up over time
  • Availability
    • Iceberg orders are available for NSE equity, F&O, currency, BCD segment and BSE equity only.
    • Iceberg order type isn’t available for MCX yet.
  • Pre/Post market
    • Iceberg orders and minute validity are not supported during pre-open & post-market sessions.

Final thought

Iceberg order is a great functionality for active traders who deal with heavy quantities but if you work with smaller quantities, it doesn’t make any sense to pay extra brokerage for using Iceberg orders.

Summary