Zerodha: Discount brokerage Zerodha has unveiled US stock investing in beta mode for select users which enables eligible Indian investors to access US-listed stocks and exchange-traded funds (ETFs) through its Kite platform.
Platform allows resident Indians to invest in up to 2,000 US-listed stocks
However, the facility is not available for NRIs, HUFs, companies, LLPs and partnership firms.
Besides 1,000 ETFs with assets under management exceeding USD 250 million, the platform allows traders to engage in fractional investing, where they can buy a fraction of a share instead of a full unit.
Zerodha’s Nithin Kamath announced Nudge v2 feature with hard limits for traders
Last month, Zerodha co-founder Nithin Kamath announced an upcoming version of the brokerage’s Nudge feature, which will allow users to set hard limits in addition to receiving risk warnings before placing trades.
“Coming soon: Nudge v2 will do more than just warnings, allowing you to set hard limits to stay disciplined,” Kamath said in a post on X.
What is Zerodha’s Nudge?
Nudge is a feature on Zerodha’s Kite trading platform that provides real-time alerts to users about risks associated with a particular trade before they execute it.
The alerts appear in the order window while users are placing a trade, allowing them to review the associated risks before submitting the order.
What will Nudge v2 offer?
According to Kamath, Nudge v2 will go beyond providing warnings and will allow users to set hard limits.
The feature is intended to help traders stay disciplined by enabling them to establish limits around their trading activity. Further details on the specific limits and how the new functionality will work were not provided in Kamath’s post.
What is a Nudge in Zerodha?
A Nudge on Zerodha is a real-time warning or informational alert that appears in the order window of its Kite trading platform. The feature is designed to help users make more informed trading decisions by highlighting potential risks before an order is executed.
Based on the principles of behavioural economics, a Nudge is designed to influence user behaviour without blocking or preventing a trade. When an order triggers a specific risk factor or regulatory requirement, a pop-up message highlights the issue.
Users are required to read the warning and click on “Proceed” to complete the transaction.
Portfolio and sector concentration: Alerts users when a single stock or sector accounts for more than 50% of the total portfolio value.
Risky or penny stocks: Warns users when an instrument has low market capitalisation, poor liquidity or potential links to price manipulation or phishing schemes.
Surveillance measures: Notifies users when a stock falls under exchange-mandated surveillance frameworks, such as the Enhanced Surveillance Measure or the Trade-to-Trade segment.
Pledged shares: Informs users when a high percentage of a company’s promoter or total outstanding shares are pledged with lenders.
Order price deviation: Appears when a limit order price is set significantly away from the Last Traded Price, which could result in the order being executed immediately or increase the risk of an unintended trade.
Corporate and legal alerts: Alerts users when a company’s lenders have signed an Inter-Creditor Agreement (ICA).
Order slicing: Explains when a large order is automatically split into smaller orders to comply with exchange-mandated quantity limits.