Indian stock market has the largest derivative market in the world, thanks to regulations by SEBI and exchanges. However, Algo trading or API based trading is relatively new and largely unchecked. We request you to take informed decisions and protect your wealth. Please go through regulations imposed by SEBI and Algoji’s Principles Before Profits. Practices mentioned below are illegal and you can raise grievance to Exchange or SEBI.
Misleading Financial Advice: All trades are subject to market risk and to your trading account. Past performance is not an indicative of future returns. You should be careful against any advertisement or recommendation which promises XX accuracy or XX returns.
Unauthorized Trading: All trades should be authorized by you. You should specifically be careful about web-based applications with poor security on which you do not have any control for trade authorization.
Manipulation Based On Your Positions: You should be careful that your real-time trades/transactions data is not exposed to any party other than your broker. Anyone can take manipulative trades based on your own market positions. Malpractices such as front-running, improper execution and false disclosure can result in severe financial loss for your trading account.
Inappropriate Brokerage Commissions: Your advisor or strategy-provider may recommend more frequent trading to earn brokerage commissions based on your trades.
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