While paper trading lets you experiment with your trade and investing strategies, some people have tendencies to abuse the system. These kind of trades are of no value to your followers, and its likely that your follower will treat you with suspicion on seeing such trades. So while such behaviour leads to no material benefit, people continue to persist even after warnings.
So as a corrective measure, following are the abuse scenarios where FrontPage Moderation team will reserve right and could delete the trades.
Trades where the quantity of an instrument is extremely high and does not reflect the actual scenario.
In the below example, the quantity purchased for NIFTY 27AUG20 11700 CE is 43500000. However, in a real time scenario you will be limited to few hundreds or thousands.
We will now allow trades with following max quantity
- For Indices: Max 1000 times the lots size.
- For Stocks: Max 100 times the lot size
- For Equity: Max Investment of 10L
We will be improving our systems further in the coming months to make this part of the trade submission. If people are found trying to circumvent the above rules, their trades may be deleted and accounts may be suspended.
Trades for short durations
The FrontPage paper trading system works on approximate time intervals. It tries to simulate the real brokerage like Zerodha as similar investment in infrastructure as brokerages is beyond possibility.
Some people though exploit the system by entering and exiting the trades in a short duration. People who deliberately do this have been warned several times and going forward we will start to disable accounts if people deliberately try to game the system.
Short duration trades are also difficult for the followers or other forum members to follow. Hence going forward we will delete any trades that enter and exit in less than 5 minutes.
Trades with illiquid options and large volumes
Several people indulge in buying deep out of money options and add large volume orders. On these kind of options such volumes are not available in real life trading. This is not permissible and the trades will be deleted.
Trading stocks which have hit upper or lower circuit
When a stock hits a circuit the trading stops in that scrip. Some people try to game system by trading such stocks. This is not permissible and the trades will be deleted.
This abuse of trade performance is experimental at this stage, and we will review the conditions and update here if there are any changes to this.
If you find any trade that abuses the above scenarios, please do report such trades. This will help us to create the platform flourish with worthy good traders and investors those could be followed and emulated.