BSPML’S

JAIKRANTI COLLEGE OF COMPUTER SCIENCE AND MANAGEMENT STUDIES,

KATRAJ, PUNE.

A PROJECT REPORT ON

“A Study of Indian Online Stock Trading Software With Reference To Zerodha”

SUBMITTED BY,

Mr. SOFIYAN JAMIR SHAIKH

UNDER THE GUIDENCE OF,

Prof. S.B Tirmale

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

BBA 2ND YEAR (FINANCE)

THE ACADEMIC YEAR (2022-2023)

 CERTIFICATE

This is to certify that Mr. SOFIYAN JAMIR SHAIKH, (Seat no. ) has worked and
completed his Project Work, in the faculty of COMMERCE AND MANAGEMENT
under the specialization of Financial Management, on Title of the project to be written
“A Study of Indian Online Stock Trading Software With Reference To Zerodha”

Under my supervision it’s all his own work and facts reported by him personal finding
and investigation.

Place:

Date:-

Prof. S.BTirmale Prof. Vishal Landageprof. Amol kale

Project guide HOD Principal

2
 APPROVAL SHEET

(VIVA VOCE COMMITTEE)

Title of Project : “A Study of Indian Online Stock Trading Software With Reference To

Zerodha”

Name of Student: Mr. SOFIYAN JAMIR SHAIKH

University Exam Seat No:

Accepted by the VIVA VOCE COMMITTEE, department of Commerce, Faculty of

Commerce and management, BSPML‟S Jaikranti College of Computer Science And
Management Studies, katraj, Pune in partial fulfillment of requirements for the Degree of
Bachelor of Business Administration.

Roll no: - Seat no:-

Internal Examiner External Examiner

3
 ACKNOWLEDGEMENT

My first experience of project has been really valuable. Sincere thanks to all the staff for
their support and guidance. This project wouldn't have completed without their continuous
support and encouragement. I hereby acknowledge their help with deep gratitude, as below
Library Dept., finance, BSPML’S Jaikranti College of computer Science and
Management Studies, Katraj, pune

Prof: Amol Kale

Principal

Prof. Vishal Landge

HOD

Mr. SOFIYAN JAMIR SHAIKH

4
 DECLARATION

I am Mr. SOFIYAN JAMIR SHAIKH, of (SY) BBA studying at Jaikranti College of

Computer Science and Management Studies, Katraj, Pune. Hereby declare that the project
titled “A Study of Indian Online Stock Trading Software With Reference To Zerodha”

was carried by me in the partial fulfillment of BBA program under SavitribaiPhule Pune
University.

This project under taken by me as part of the academic curriculum according to

university rules and norms has no commercial motive or interest. It is not submitted to any other
organization to any other purpose.

Place: -Katraj, Pune.

Date:-

Mr. SOFIYAN JAMIR SHAIKH

(BBA 2nd Year)

(FINANCE)

5
 INDEX

Name of content Page

Sr. No
no.
1. 1. INTRODUCTION 7
2. COMPANY PROFIEL 8-10
2.
3. OBJECTIVE
3. 3.1-Purpose Of The Online Trading
11-13
Software
4. METHODLOGY
4.1-Surveys
4. 4.2-Interviws 14-15
4.4-Data Analysis 14
4.5-Online Research
5. SWOT ANALYSIS
5.1-Strengths
5.2-Weakness 16-22
5.
5.3-Opportunities
5.4-Threats
6. INFORMATION ABOUT ONLINE TRADING
SOFTWARE
6.1-User Interface 23-24
6.
6.2-Real Time market Data
6.3-Trading Interface
6.4-Automated Trading
7. WHAT IS TRADING SOFTWARE?
7.1-Tyeps of Trading Software 25-27
7.
7.2-How Does a Trading Platform Work?

8. TRADINGTERMINAL
(User Guide Of Zerodha Kite App)
8.1-the Login Process
8. 8.2-The Market Watch 28-39
8.3-Buying Stock Through Trading Terminal
8.4-The Order Book and Trade Book
8.5-The Bid and Offer price
9. DATA ANALYSIS AND
40-44
9. INTERPRETATION

10. 10. CONCLUSION 45

11. BIBLOGRAPHY
12. QUESTIONNAIRS 46-50
11.
13. ANNEXURE

6
 1. INTRODUCTION

Online trading software has become increasingly popular in India, providing investors with a
convenient and accessible platform to invest in the stock market. The development of online
trading software has significantly impacted the Indian investment landscape by making it easier
for investors to trade and invest in stocks, mutual funds, and other financial instruments.

This project report provides an in-depth analysis of online trading software in India, with a
focus on the popular online trading platform, Zerodha. The report begins by providing an
overview of the online trading industry in India, highlighting the benefits of online trading
software and the different types of online trading software available in the Indian market. The
report then examines Zerodha, a popular online trading platform in India, and provides an
overview of its online trading platform, Kite.

The report also delves into the regulatory framework for online trading in India and highlights
the compliance requirements for online trading platforms. Additionally, the report discusses
the advantages and disadvantages of online trading in India, as well as customer satisfaction
and feedback on online trading software.

Finally, the report concludes by discussing the future trends in online trading software in India
and providing recommendations for online trading platforms to improve their services. The
purpose of this project report is to provide investors and other interested parties with a
comprehensive understanding of online trading software in India and the implications for the
Indian investment landscape.

7
 2. COMPANY PROFILE

Zerodha is an Indian stock broking company. The company headquarter is in Bengaluru,

Karnataka, India. It is an Indian financial service company that offers retail and institutional
broking, currencies and commodities trading, mutual funds, and bonds. The company name
Zerodha is derived from Sanskrit with combination of ‘Zero’ and ‘Rodha’ which means barrier.
The company disruptive pricing models and in-house technology made the biggest stock broker
in India in terms of active retail clients. Zerodha run a number of popular open online
educational and community initiatives to empower retail traders and investors.

▪ 2.1.BASIC INFORMATION
Points Information

Company Name Zerodha

Founder Name NithinKamath

Owner NithinKamath

Date of Establishment 2010

Establishment Place Bengaluru, India

Revenue INR 7,000 crore

Registered Address 153/154, 4th Cross, J.P Nagar 4th Phase, Opp. Clarence Public School, Bengaluru –
560078

Telephone No. 91 80 4718 1888

Company Status Active

Website zerodha.com

8
 o 2.2.Products

I. Zerodha Kite:

It is India’s best Trading Platform for Active trader. Zerodha kite web, mobile available in
Android as well as IOS. Pi – exe base trading platform where you can code, scan, back test
your trading strategy before you apply in stock market.

II. Zerodha Varsity:

It offer you in-depth knowledge about stock market trading, how to read balance sheet, how
to trade in option market, how to find best pair – trading stocks, trading and money management
methods and many more.

III. Zerodha Coin:

It is India’s 1st Direct investment mutual fund product offered by stock broker, where you can
save up to 28 lacs in 25yrs. In this product, you can buy mutual funds online, commission-free,
delivered directly to your Demat account.

IV. Zerodha Kite Connect API:

It is India’s 1st Eco system where you can create your own trading platform and trade directly
from with help of KITE API. It builds powerful trading platforms and experiences with super
simple HTTP/JSON APIs. If you are a startup, build your investment app and showcase it to
our client base.
9
 V. Zerodha Sentinel:

It create powerful market alerts on the cloud for stocks, futures and options, and more for free.

2.3. Founder:

NithinKamath
Zerodha founded by NithinKamath. He is an Indian entrepreneur and the founder and CEO of
the company. He did graduation from Bangalore Institute of Technology in Electronics and
Telecommunication. In 2006, he started his career as a sub-broker. He worked with Reliance
money as a money manager. Kamath was named one of the “Top 10 Businessmen to Watch
Out for in 2016 in India” by The Economic Times for discount broking in India. He faced
many hurdles during his decade long stint as a trader.

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 3. OBJECTIVE
The primary objective of this project is to provide an in-depth analysis of online trading
software in India, with a focus on the popular online trading platform, Zerodha. The project
aims to achieve the following objectives

1) To provide an overview of the online trading industry in India and the benefits of online
trading software.

2) To examine the different types of online trading software available in the Indian market.

3) To analyze the online trading platform, Kite, provided by Zerodha.

4) To understand the regulatory framework for online trading in India and highlight the
compliance requirements for online trading platforms.

5) To assess the advantages and disadvantages of online trading in India.

6) To gather customer feedback and evaluate customer satisfaction with online trading
software.

7) To discuss the future trends in online trading software in India and provide recommendations
for online trading platforms to improve their services.

The ultimate goal of this project is to provide investors and other interested parties with a
comprehensive understanding of online trading software in India and the implications for the
Indian investment landscape.

11
 3.1.Purpose of Online Trading Software:
The purpose of developing online trading software can be summarized as follows:
• Empowering Investors:

Online trading software empowers investors by providing them with the tools and resources
they need to make informed investment decisions. Online trading software provides investors
with access to real-time market data, research tools, and trading features, enabling them to track
their investments and execute trades quickly and easily.

• Efficient and Effective Trading Facilitating:

Online trading software facilitates efficient and effective trading of securities, such as stocks,
mutual funds, and other financial instruments. Online trading software enables investors to
execute trades quickly and easily, from anywhere and at any time.

12
 • Providing Easy Access to Real-Time Market Data and Research Tools:

Online trading software provides investors with easy access to real-time market data and
research tools. This enables investors to monitor market trends, track their investments, and
make informed investment decisions.

• Lowering Costs:

Online trading software is generally more cost-effective than traditional brokerage services,
with lower fees and commissions.

20. Improving Transparency:

Online trading software improves transparency by providing investors with easy access to real-
time market data and research tools. This enables investors to make informed investment
decisions based on accurate and up-to-date information.

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 4. METHODLOGY

The methodology of this project involves a combination of primary and secondary research
methods. The primary research methods used in this project include surveys and interviews,
while the secondary research methods used include literature reviews, online research, and data
analysis.

4.1Surveys:
Surveys were conducted to gather data on the usage and effectiveness of online trading
software among investors. The survey questions were designed to gather information on the
investors' demographics, trading experience, and their perceptions and experiences of using
online trading software. The survey responses were then analyzed to identify trends and
patterns in the data.

4.2.Interviews:
Interviews were conducted with experts in the online trading industry, including traders,
brokers, and software developers. The interviews were designed to gather insights into the
development and use of online trading software, the benefits and challenges of using online
trading software, and the future trends in the industry. The interview responses were then
analyzed to identify key themes and insights.

4.3.Literature Reviews:
Literature reviews were conducted to gather information on the history of online trading, the
different types of online trading software available in the market, the benefits and challenges
of using online trading software, and the future trends in the industry. The literature reviews
were conducted through online research, and relevant articles, books, and reports were
analyzed to gather information on the subject.

4.4.Data Analysis:
The data collected through surveys and interviews were analyzed using statistical analysis
tools to identify trends and patterns in the data. The data analysis was used to provide insights
into the usage and effectiveness of online trading software among investors.

14
 4.5.Online Research:
Online research was conducted to gather information on the different types of online trading
software available in the market, the features and benefits of each software, and the pricing and
subscription plans. The online research also included gathering information on the regulatory
framework for online trading in India and the different regulatory bodies governing the
industry.

Overall, the methodology of this project involved a combination of primary and secondary
research methods to gather data and insights into the purpose and effectiveness of online
trading software in India. The data collected through surveys and interviews were analyzed
using statistical analysis tools, and the insights gained from the research were used to provide
recommendations and insights into the development and use of online trading software in the
Indian market.

15
 5. SWOT ANALYSIS

SWOT analysis is a strategic planning tool used to identify and evaluate the strengths,
weaknesses, opportunities, and threats of a project or organization. In the case of online trading
software in India, the SWOT analysis can be as follows:

5.1.Strengths:

a. Convenience:

Online trading software offers the convenience of trading from anywhere, anytime, making it
easier for investors to buy and sell stocks and other securities.

16
b. Cost-effective:

Online trading software is usually cheaper than traditional brokerages as they charge lower
commissions

c. Easy access to market information:

Online trading software provides easy access to market information, which can be useful in
making informed trading decisions.

d. Quick Execution:

Online trading software offers quick execution of trades, which can be beneficial in fast-
moving markets.

17
 5.2.Weaknesses:

a. Technical issues:

Online trading software is reliant on technology, and any technical issue can lead to disruption
of services and loss of trading opportunities.

18
b. Limited customer support:

Online trading software may not offer the same level of customer support as traditional
brokerages, which can be a disadvantage for novice traders.

c. Cybersecurity threats:

Online trading software is vulnerable to cybersecurity threats, and any data breach can
compromise investors' personal and financial information.

19
5.3.Opportunities:

a. Growing market:

Online trading software has a vast market in India as more investors are turning to online
trading.

b. Increased adoption of mobile trading:

With the increasing use of smartphones, there is an opportunity for online trading software to
adopt mobile trading platforms to increase user convenience.

20
 c. Expansion of services:

Online trading software can expand their services beyond stock trading, such as mutual funds
and other investment options.

5.4.Threats:

a. Competition:

21
 Online trading software faces intense competition from established brokerage firms and
emerging fintech start-ups.

b. Regulatory challenges:

The online trading industry is heavily regulated, and any changes in regulations can impact the
functioning of online trading software.

c. Market risks:

The market is unpredictable, and any sudden change in market conditions can impact the
performance of online trading software.

Overall, the SWOT analysis provides insights into the strengths, weaknesses, opportunities,
and threats of online trading software in India. By understanding these factors, online trading
software can improve their services and stay ahead of the competition.

22
 6. INFORMATION ABOUT ONLINE TRADING SOFTWARE

Online trading software, also known as trading platforms, are computer programs that allow
investors to buy and sell securities online. The software is designed to facilitate trading on
different exchanges and provide real-time access to market data, news, and trading tools.
Some of the key features of trading software include:
6.1.User Interface:

The software interface is designed to be user-friendly, with easy-to-use tools for trading and
analysis.

6.2.Real-time Market Data:

The software provides real-time market data, including stock prices, charts, and news, to help
investors make informed trading decisions.

23
 6.3.Trading Tools:

Trading software includes tools such as order management, risk management, and technical
analysis tools to help investors manage their trades and portfolios.

6.4.Automated Trading:

Some trading software also allows for automated trading, where investors can create trading
strategies and let the software execute the trades automatically.

Mobile Trading: Many trading software platforms have mobile apps that allow investors to
trade from anywhere at any time.

There are different types of trading software available in the market, including desktop-based
software, web-based software, and mobile apps. Some of the popular trading software
platforms used in India include Zerodha's Kite, Upstox Pro, Angel Broking's Angel SpeedPro,
and 5Paisa Trading Terminal.

Trading software has revolutionized the way investor’s trade in the stock market, making it
more accessible and convenient. With real-time access to market data and advanced trading
tools, investors can make informed decisions and manage their portfolios more efficiently.

24
 7. What Is Trading Software?

Trading software facilitates the trading and analysis of financial products, such as stocks,
options, futures, or currencies.

There are a wide variety of trading software packages available at all levels of trading
experience and tailored to different markets (e.g., stocks vs. forex).

Trading software is used for electronic trading and analysis of securities.

Self-directed traders need to utilize and learn how to effectively use their trading software in
addition to learning how to trade or invest.

Common features of trading software include order placement, technical analysis, fundamental
analysis, automated trading, and paper trading.

Understanding Trading Software

Often, brokerage firms provide their clients with trading software to place trades and manage
their accounts. The software may be downloadable and launchable from a desktop or mobile
device, or it may be web-based where the trader accesses the software via a website they log
in to.

Traders can also purchase third-party trading software that supplements or enhances the
sofware provided by brokerages.

Due to falling commission costs over the years, more traders and investors have moved to
doing at least some of their own trading and analysis using self-directed trading accounts. This
has increased the demand for software that provides trading capabilities, as well as analysis
and information resources within the software.

Trading software can provide users with pricing information for assets, special order
types, fundamental data, charts, technical analysis indicators, statistics, chat rooms, and other
proprietary tools or functions that brokers and software developers use to draw traders to their
service.

The availability of application programming interfaces, or APIs, has also helped fuel the
trading software industry. APIs allow for two more pieces of trading software to be linked up,
functioning as one. This allows users to access the benefits of multiple pieces of software. APIs
are not always required, as a user could simply run the two or more programs independently
on their computer, although the programs will not communicate with each other.

25
7.1.Types of Trading Software
There are different types of trading software with different features provided by both
brokerages and third-party developers.

1. Placing Trades:
Most trading software has the ability to place trades, including market orders, limit orders, and
other advanced order types, as well as the ability to look up real-time quotes and view the Level
2 order book. Some software will also track trading statistics, such as win rate and average
profit/loss on closed trades.

2. Technical Analysis:
Most trading software includes interactive charting capabilities, including both chart patterns
like trendlines and shapes, as well as technical indicators like moving averages or momentum
oscillators.

3. Fundamental Analysis:
Some trading software provides access to fundamental information, including financial
statements, analyst ratings, and other proprietary tools designed for investors to simplify
their due diligence.

4. Programmatic Trading:
Advanced trading software enables traders to develop trading systems that can be executed
automatically rather than having to manually click a button. In addition, these software
solutions may provide back testing functionality designed to help traders see how their
automated trading systems would have performed in the past.

5. Paper Trading:
Some trading software includes the ability to place riskless no-real-money trades, which is
known as paper trading. Traders can test out their skills to see how they would perform before
committing actual capital. This feature is especially common among brokers in the forex
market.

26
 7.2.How does a trading platform work?

1. A trading terminal is your gateway to markets. You must know the operations of a trading
terminal if you aspire to become an active trader.
2. You can load the stock you are interested in on the market watch to track all the relevant
information.
3. Some of the basic information on a market watch is – LTP, % change, OHLC, and volumes.
4. You need to invoke a buy order form by pressing the ‘B’ key to buying a stock. Likewise,
to sell a store, you need to gather a sell order form by pressing the ‘S’ key.
5. You choose a limit order type when you are keen on transacting at a particular price; else,
you can opt for a market order.
6. You choose CNC as a product type if you want to buy and hold the stock across multiple
days. If you want to trade intraday, you choose NRML or MIS.
7. An order book lets you track orders that are both open and completed. You can modify the
available orders by clicking on the change button at the order book’s bottom.
8. Once the order is completed, you can view the trade details in the trade book. In the case of
a market order, you can view the exact trade price by accessing the trade book.
9. You can press the F6 key to invoke the market depth or snap quote window. The market
watch enables you to see bid and ask prices.
10. The bid & ask prices refer to the price you can transact. By default, the top 5 bid and ask
prices are displayed in the market depth window at all times.

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 8. Trading Terminal

(User guide Of Zerodha Kite APP)

1. Call your stocks broker (usually on the central support number), and request to buy or
sell a stock; this is called “Call & Trade.”
2. Use a web application
3. Use a mobile application
Regardless of which method you choose, the selected method gives you access to the stock
market. Think of this access as a gateway. The gateway allows you to do multiple things, such
as transact in shares, track your Profit & Loss, track market movements, manage your funds,
view stock charts, access trading tools, etc. This chapter aims to familiarize you with this
gateway, also called a ‘Trading terminal’. To explain this chapter, I’ll use Zerodha’s trading
terminal called ‘Kite.’ If you are with another broker, then the trading terminal provided to you
will have (should have) similar features and functionality.

You can access the trading terminal by entering the URL on your browser. For Zerodha Kite,
it is kite.zerodha.com. To access the trading terminal, you must have a trading account with
your broker. A good trading terminal offers many features. We will start by understanding a
few basic features. Let us set two basic tasks, and we will accomplish them using the trading
terminal, and in the process, we learn the basics practically. Here are the two tasks –

1. Buy one share of ITC, and

2. Track the price of Infosys

28
While we achieve the above two tasks, we will also learn about all the relevant concepts.

9. The login process:

The trading terminal is quite sensitive as it contains information about all your securities and
funds. SEBI has been working hard to ensure the relevant regulations are in place to prevent
situations where access to the client’s trading terminal is compromised. To ensure adequate
security, brokers have to follow a stringent login process. The process involves entering your
broker-provided user ID (it’s referred to as the Kite ID in Zerodha), and a password.
Once you click login, the user id and password are authenticated, and then you are prompted
to enter an external TOTP (Time based one-time password). TOTPs, as the name suggests, are
time sensitive and keep changing once in a few seconds. TOTPs can be set up using 3rd party
authentication software like Google authenticator or Authy.

Once you validate the TOTP, you will instantly get access to your trading account.

10. The Market watch:

Once you successfully log in to the platform, you must populate the ‘market watch’ with the
stocks you are interested in. Think about the market watch as a blank slate. Once the stock is
loaded on the market watch, you can easily transact and query information about it. A blank
market watch looks like this (this is also the screen that you see once you log in)

The 600.2 under equity and 136.75 under commodities indicate my fund balance. So 600
Rupees for Equity (to buy and sell stocks), and 136 Rupees to buy commodities. You can add
29
funds from your bank to your trading account or withdraw funds from your trading account
back to your bank account by clicking on the fund tab on top.
Alright, let us work on the first task, i.e., to buy one share of ITC. As a first step, we will load
ITC Ltd onto the market watch. To do this, we have to search for ITC in the search bar, and
the drop-down will show the stock in different exchanges (NSE/BSE).

You only need to look for ‘ITC’; other instruments, like ITC-BE, ITC-BL, or ITC6, are all
different instruments. We will discuss more of that later. We are interested in buying one share
of ITC (or ITC stock), and the relevant instrument is ITC. So let us click on the ‘Add symbol’
to add the stock to the Market Watch

Market Watch will display the last traded price, a percentage change of the stock.

o The last traded price of the stock (LTP) – This gives us a sense of how much the stock
is trading at the very moment.
o Percentage change – This indicates the percentage change in the LTP with respect to
the previous day’s close.
Some basic information that will be needed at this point would be:

o The previous day’s close – As the name suggests, it’s the previous day’s close price.
o OHLC – Open, High, Low, and Close give us a sense of the range within which the
stock is trading during the day. Do recollect we discussed OHLC in the previous
chapter.
o Volumes – Gives a sense of how many shares are being traded at a particular time.
30
You can find this information under Market Depth. If you hover over the stock name from the
left, you will find Buy, Sell, Market Depth, and chart options. If you click on Market depth,
you will find the above information, including the best bid and offer price ladder. We will cover
the Bid and Offer prices soon.

As you can see, the last traded price of ITC is Rs.262.25, and it is trading -0.40% lower than
the previous day’s close, which was Rs.263.30. The open for the day was at Rs.265.90, the
highest price and the lowest price at which the stock traded for the day was Rs.265.90 and
Rs.262.15 respectively. The volume for the day is close to 27 lakh shares.

11. Buying stock through the trading terminal:

Our goal is to buy one share of ITC. We now have ITC in our trading terminal. The first step
for this process would be to invoke what is called a buy order form.

o If you want to Buy and click on the Buy Icon (B)

o Clicking on the Buy icon invokes the buy order form, as seen below

31
The order form is pre-populated with some information like the price and quantity. We need to
modify this as per our requirements. Let us begin with the first drop-down option on the top.
By default, the exchange specified would be NSE, but you can select BSE if you wish.
The next entry is the ‘order type.’ By clicking on the drop-down menu, you will see the
following four options:

o Limit
o Market
o SL

o SL-Market
Let us understand what these options mean.
You can opt for a ‘Limit’ order when you are particular about the price you want to pay for a
stock. In our case, the last traded price of ITC is Rs.262.25 but say we want to limit our buy
price to Rs.261, twenty-five paisa lower than the LTP. In such a situation, I can use the limit
feature and specify the price at which I want to buy the stock. The limit feature is great as it
gives us control over the price at which we want to buy, but on the flip side, if the stock price
does not fall to our limit price, i.e., 261, our order will not get executed, and we won’t get to
buy. This is one of the drawbacks of a limit order. The limit order stays valid till the market
closes, i.e., 3:30 PM, and then gets canceled.
You can also opt for a market order when you intend to buy at market-available prices instead
of a limited price. So if you were to place a market order, as long as sellers are available, your
order would go through, and ITC will be bought in and around Rs.262.25. Suppose the price
goes up to Rs.265 coinciding with your market order placement, then you will get ITC at
Rs.265. When you place a market order, you will never be sure of the price at which you will
transact, which could be quite dangerous if you are an active trader. A market order will always
ensure your order goes through, unlike a limit order.
A stop-loss order protects you from an adverse movement in the market after initiating a
position. Suppose you buy ITC at Rs.262.25 with an expectation that ITC will hit Rs.275
shortly. But instead, what if the price of ITC starts going down? We can protect our position
by defining the worst possible loss you are willing to take. For instance, in the example, let us
assume you don’t want to take a loss beyond Rs.255
This means you have gone long on ITC at Rs.262.25, and the maximum loss you will take on
this trade is Rs.6 (255). If the stock price drops to Rs.255, the stop loss order gets active and
hits the exchange, and you will be out of the loss-making position. If the price is above 255,
the stop-loss order will be dormant.

32
A stop-loss order is a passive order. To activate it, we need to enter a trigger price. A trigger
price, usually above the stop-loss price, acts as a price threshold, and only after crossing this
price does the stop-loss order transition from a passive order to an active order.
Going with the above example:
We are long at Rs.261. If the trade goes bad, we want to get rid of the position at Rs.255.
Therefore 255 is the stop-loss price. The trigger price is specified so the stop-loss order would
transition from passive to active. The trigger price has to be higher (or equal) to the stop-loss
price. We can set this to Rs.255 or higher. If the price drops below 255, the stop loss order
gets active.
Returning to the main buy order entry form, we move directly to the quantity once the order
type is selected. Remember the task is to buy one share of ITC; hence we enter 1 in the quantity
box. We ignore the trigger price and disclosed quantity for now. The next thing to select is the
product type.
Select CNC for delivery trades. If you intend to buy and hold the shares for multiple
days/months/years, you must ensure the shares reside in your Demat account. Selecting CNC
is your way of communicating this to your broker.
Select MIS if you want to trade intraday. MIS is a margin product; we will understand more
about this when we take up the derivatives module.
Once these details are filled in your order form, the order is good to hit the markets. The
order gets transmitted to the exchange as soon as you press the submit button on the order
form. A unique order ticket number is generated against your order.
Once the order is sent to the exchange, it will not get executed unless the price hits Rs.261. As
soon as the price drops to Rs.261 (assuming sellers are willing to sell one share), your order
gets through and is eventually executed. As soon as your order is executed, you will own one
share of ITC.

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 12. The order book and Trade book:

Think of the order book and trade book as online registers within the trading terminal. The
order book keeps track of all the orders you have sent to the exchange, and the trade book tracks
all the trades. Think of it this way – when you order goods on Amazon, you first add items to
the cart. The cart is the order book. You can add items, delete, or modify the order from the
cart (order book). But when you press the buy button on Amazon, the order gets placed, and a
receipt is generated. The trade book is that receipt. You also get a detailed receipt emailed to
you called a ‘Contract Note’; we will discuss that later; for now think about the trade book as
a general receipt for all the trades you carry out on the terminal.
So the order book has all the details regarding your order. You can navigate to the order book
by clicking the Orders tab.

The order book provides the details of the orders you have placed. You should access the
order book to:

o Double-check the order details – quantity, price, order type, product type
o Modify the orders – For example, if you want to modify the buy order, say from 261 to
259.
o Check Status – After placing the order, you can check the status. The status would state
open if the order is completed partially, it would state completed if the order has been
completed, and it would state rejected if your order has been rejected. You can also see
the details of the rejection in the order book.

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If you notice, there is an open order to buy one share of ITC at Rs.261.
If you hover over the pending orders, you can find the option to modify or cancel the order.

By clicking ‘modify,’ the order form will be invoked, and you can make the desired changes
to the order.
Once the order is processed, and the trade has been executed, the trade details will be available
in the trade book. You can find the trade book just below the order book.
Here is a snapshot of the trade book:

The trade book confirms that the user ordered to buy one share of ITC at Rs 262.2. Also, notice
a unique exchange order number is generated for the trade.
So with this, our first task is complete!
We now officially own one share of ITC. This share will reside in our DEMAT account until
you decide to sell it.

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The next task is to track the price of Infosys. The first step would be to add Infosys to the
market watch. We can do this by searching for Infosys in the search box.

Once we select Infy, we press add to add it to the market watch.

Notice we have two stocks on the watchlist now – Infy and ITC. We can now track live price
information on Infosys. The last trade price is Rs.1014.75; the stock is down -0.11% from its
previous day’s close of Rs.1015.85. Infosys opened the day at Rs.1014.80, making a low of
Rs.998.40 and a high of Rs.1028.95. The volumes were 3.6 million shares.
Please note while the open price will be fixed at Rs. 1014.80, the high and low prices change
as and when the price of Infosys changes. For example, if Infosys moves from Rs.1014.2 to
Rs.1050, the high price will reflect Rs. 1050 as the new high.
Notice below that the LTP of Infosys is in green, and ITC is in red. The cell is highlighted in
green if the current LTP is higher than the previous close, and red otherwise.
Have a look at the snapshot below:

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While writing this chapter, the price of Infosys moved from 1014.20 to 1020.80, and the colour
changed to red from blue.
Besides the basic information about the LTP, OHLC, and volume, we can also dig deeper to
understand real-time market participation, which is available in market depth. I want to draw
your attention to the blue and red numbers called the Bid and Offer prices.

13. The Bid and Offer Price:

If you want to buy a share, you need to buy it from a seller. The seller will offer the shares at
a price that he or she thinks is fair. The price that the seller offers you is called the ‘Offer

Sl No Offer Price Offer Quantity Number of Sellers

01 3294.80 2 2

02 3294.85 4 2

03 3295.00 8 2

04 3296.20 25 1

05 3296.25 5

Price.’ The offer price is high

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Lighted in red. Let us analyse this in a bit more detail.
By default, the market depth window displays the top 5 bids and offer prices. In the table above,
we have the top 5 offer prices.
The first offer price is Rs.3294.80. At this particular moment, this is the best price to buy the
stock and there are only two shares available at this price being offered by two different sellers
(both of them are selling one share each). The next best price is Rs.3294.85. At this price, four
shares are offered by two different sellers. The third best price is Rs.3295, at which eight shares
are available, and two sellers offer this. So on and so forth.
As you notice, the higher the asking price, the lower the priority. For example, the 5 th position
is an asking price of Rs.3296.25 for five shares. This is because the stock exchanges prioritize
sellers willing to offer their shares at the lowest possible price.
Notice that even if you want to buy ten shares at Rs.3294.8, you can only buy two shares
because only two are being offered at Rs.3294.8. However, if you are not particular about the
price (aka limit price), you can place a market order. When you place a market order to buy 10
shares, this is how it will go –

o Two shares are bought @ Rs.3294.8

o Four shares are bought @ Rs.3294.85

o Four shares are bought @ Rs.3295.00

The ten shares will be bought at three different prices. Also, in the process, the LTP of
Infosys will jump to Rs.3295 from Rs.3294.8
If you want to sell a share, you need to sell it to a buyer willing to buy it from you. The buyer
will buy the shares at a price that they thinks is fair. The price that the buyer expects is called
the ‘bid price.’ The bid price is highlighted in blue. Let us analyze this part in a bit more detail:

Sl No Bid Price Bid Quantity Number of Buyers

01 3294.75 10 5

02 3294.20 6 1

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 03 3294.15 1 1

04 3293.85 6 1

05 3293.75 125 1

Again by default, the market depth window displays the top five bid prices. Notice the best
price at which you can sell shares is Rs.3294.75, and at this price, you can only sell ten shares
as only five buyers are willing to buy from you.
If you were to sell 20 shares at market price, the following would be the execution pattern:

o Ten shares sold @ Rs.3294.75

o Six shares sold @ Rs.3294.20
o One share sold @ Rs.3294.15
o Three shares sold @ Rs.3293.85

So, in a nutshell, the bid and offer prices give you information about the top 5 prices at which
the buyers and sellers are stacked. You need to understand how buyers and sellers place their
trades, especially if you are an intraday trader.
By default, the bid-offer is shown only for the top 5 prices. You can, however, get an insight
into the top 20 bids and offers by looking at the 20-depth window.

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 9.DATA Analysis and Interpretation
Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the
goal of discovering useful information, suggesting conclusion, and supporting decision
making.
The process of evaluating data using analytical and logic reasoning to examine each component
of data provided... Data from various source is gathered, reviewed and then analysed to form
some sort of finding or conclusion.

Why do we analyze data?

The purpose of analyzing data is to get usable and useful information. The analysis,
irrespective of whether data is quantitative or qualitative, may:
• Describe and summarize the data.
• Identify relationship between variables.
• Compare variables.
• Identify difference between variables.
• Forecast outcomes.

The research method used was survey through questionnaire.

A sample size of 50 people was taken.
These are the questions asked in the survey questionnaire and the results are as follows-

14. Age-

Interpretation-Almost 98%of the people in the sample were between the age of 15-
30 years.
This States that most of the people were from young generation.
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Do you Know Zerodha trading App-

Interpretation-As Most of People from thee sample were learning Students majority of them
known the software .It shows Thepoplarity of this software

15. On Scale of 1-10 ,how satisfied are you with the user interface and overall user
Experience of Zerodha trading Platform .

Interpretation_- Around 60-70% gave rating of above 6 scale .This represent zerodha has a
good User Interface

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Interpretation_-Around 70% People gave 4-5 Rating Its Shows Zerodha has A good hassle free
Account opening Process.

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 10. CONCLUSION

• In conclusion, Zerodha's online trading software has revolutionized the Indian trading
industry by offering a user-friendly, affordable, and feature-rich platform for traders of all
experience levels. The software's strengths, such as a low commission, advanced trading
tools, and a user-friendly interface, have made it a popular choice among investors.
However, there are also weaknesses, such as technical issues and slow customer support,
that need to be addressed to ensure a seamless trading experience.

• One of the most significant opportunities for Zerodha is to expand its product offerings to
include mutual funds, commodities, and other investment options. By doing so, Zerodha
can increase its market share and compete with other established brokerage firms.
Additionally, Zerodha can continue to improve its software by introducing new features and
addressing any technical issues to keep up with the changing needs of traders.

• Zerodha also faces several threats, including competition from other discount brokers and
established brokerage firms, as well as regulatory challenges in the online trading industry.
The competition can make it challenging to maintain market share, and any changes in
regulations can impact the functioning of Zerodha's software. Therefore, Zerodha needs to
continuously monitor the market and regulations to remain competitive and compliant.

• Overall, Zerodha's online trading software has had a significant impact on the Indian trading
industry, providing a platform for investors to trade stocks, futures, options, and currencies
with ease. The software's strengths, weaknesses, opportunities, and threats have been
analyzed in this project report, providing insights into its performance and potential for
improvement. With its commitment to innovation and customer satisfaction, Zerodha is
well-positioned to continue to lead the way in the Indian trading industry

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 BIBLIOGRAPHY
• Website :
1. https://zerodha.com/varsity/chapter/the-trading-terminal/

• Google Form Link:-

https://docs.google.com/forms/d/e/1FAIpQLScn6f892aaRx4Y5p4
M3PCZHAN8qcLVe3bHvxso1qerFM7vCpA/viewform?usp=sf_li
nk

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 • QUESTIONNAIRE,
1. Which trading platform do you use the most: Kite Web, Kite Mobile or Kite Connect API?
2. How satisfied are you with the user interface and design of the Zerodha trading
software/apps?
3. What features of the Zerodha trading software/apps do you use the most?
4. How reliable do you find the Zerodha trading software/apps in terms of speed and uptime?
5. Have you faced any technical issues while using the Zerodha trading software/apps? If
yes, how were they resolved?
6. Have you used the Zerodha trading software/apps to invest in mutual funds or buy/sell
commodities? If yes, how was your experience?
7. Have you used the Zerodha Coin app for investing in mutual funds? If yes, how was your
experience?
8. Have you used the Zerodha Console app to track your portfolio and holdings? If yes, how
was your experience?
9. Would you recommend the Zerodha trading software/apps to others? Why or why not?

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• ANNEXURE

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