Types of Orders
Order types and conditions The system allows the trading members to enter orders with various conditions attached to them as per their requirement. These conditions are broadly divided into Time conditions, Quantity Conditions, Price Conditions and Other Conditions. Several combinations of the above are allowed thereby providing enormous flexibility to the users. 1) Time Conditions: a) Day Order: A Day order, as the name suggests is an order that is valid for the day on which it is entered. It the order is not executed during the day, the system cancels the order automatically at the end of the day. b) IOC Order: An Immediate or Cancel (IOC) order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is canceled from the system. Partial match is possible for the order, and the unmatched portion of the order is canceled immediately. 2) Quantity Conditions: a) Disclosed Quantity Order An order with a Disclosed Quantity (DQ) allows the user to disclose only a portion of the order quantity to the market. For e.g. if the order quantity is 10,000 and the disclosed quantity is 2000 then only 2000 is disclosed to the market b) Security Wise Under Order Quantity Limit (SUOQL) An additional facility for setting up Security Wise Under Order Quantity Limit (SUOQL) for buy and/or sell has now been provided. a) The corporate manager is allowed to set the SUOQL separately for buy and sell orders for each security for all the Branch Managers (BMs) and Dealers (except inquiry only users) under him including himself. b) It is possible to modify the SUOQL anytime during trading hours. SUOQL should not be set lower than the user limit for that security. For a Symbol, both Buy and Sell quantity can be set to unlimited. c) The used limit field is displayed for buy and sell separately for each security. d) Any activity like order modification or cancellation gets reflected in used limit figure for the respective security and respective side. e) The limit is applicable for a symbol across all series, across all the markets. SUOQL setting option is given in supplementary menu. f) A bulk upload facility to set the security wise buy sell limit through a (comma separated values) csv file has been provided. In case of failure to upload a particular record/s failure message is written in the input file in the form of an error code. The file is reusable. g) SUOQL bulk upload facility is not available during the market hours. h) After the limit is set successfully, the message is sent to the respective CM/BM/dealer. i) A facility to limit trading to the securities set up in the SUOQL has been provided. If limit trading option is set for a user, then the user is allowed to place orders only for Symbols set in the SUOQL list by the CM. It should however be possible to enable this facility without having any security in the SUOQL list, which in turn prevents the user from entering of any fresh orders. j) Corporate Manager has been given a facility to allow or disallow a user from entering Index orders. By default all dealers will be allowed to place index orders. Index orders are not validated for the SUOQL limits. However, order since once entered are updated in the used limits. k) It is possible that dealer is restricted to enter order in particular security, but allowed to enter index order and that restricted security is a part of Nifty. l) If the order is modified by CM/BM for a respective dealer then the used limit will be updated accordingly, but in this case it can exceed the set limit. m) SUOQL used limit will not be validated and updated for Auction orders. Quantity Freeze All orders with very large quantities receive quantity alert at member terminal. If members enter any order exceeding the lowest of the quantity given below, it results in an alert which reads as ‘Order entered exceeds alert quantity limit. Confirm availability of adequate capital to proceed and only after the member clicks the button ‘Yes’ the order will be further processed for execution. Quantity Freeze Parameters 0.5% of the issue size of the security or Value of the order is around Rs. 2.5 Crores or A Global alert quantity limit of more than 25000 irrespective of the issue size of the security, whichever is less. 3) Price Conditions a) Market Order Market orders are orders for which price is specified as ‘MKT’ at the time the order is entered. For such orders, the system determines the price. • b) Stop Loss Order The facility allows the user to release an order into the system after the market price of the security reaches or crosses a threshold price called trigger price. Trigger Price: Price at which an order gets triggered from stop loss book. Limit Price: Price of the orders after triggering from stop loss book. Price Freeze Since no price bands are applicable in respect of securities on which products are available, in order to prevent members from entering orders at non-genuine prices in such securities, the exchange has decided to introduce operating range of 20% for such securities. Any order above or below 20% over the base price should come to the exchange as a price freeze. Market Price Protection Market Price Protection functionally gives an option to a trader to limit the risk of a market order, within a pre-set percentage of the Last Trade Price. The pre-set Market price protection percentage is by default set to 5% of the LTP. The users can change the pre-set Market Price Protection from the Order Limit Screen which can be invoked from the Supplementary Menu. The set percentage will be applicable till the Ntreldr EXE is re-inflated. At the time of order entry, the user can press (page up) when the cursor is in the price field. … Read more