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
For
b) Security Wise Under Order Quantity Limit (SUOQL)
An additional facility for setting up Security Wise Under Order Quantity Limit (
a) The corporate manager is allowed to set the
b) It is possible to modify the SUOQL anytime during trading hours.
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.
- In case of a buy order, this defaults a price value, which is greater than LTP by a pre-set percentage. In case of a sell
order the default value will be lesser than the LTP by a pre-set percentage. - The time condition in both cases will automatically change to IOC. The user has the option to change any of the fields. Since the calculations are based on LTP of broadcast for the security is not received, the default value will be ‘Market’.
4) Other Conditions
a) PRO/CLI:
A user can enter orders on his own account or on behalf of clients. By default, the system assumes that the user is entering orders on the trading member’s own account.
b) Participant Codes:
By default, the system displays the trading member ID of the user in the participant field. Thus all trades resulting from an order are to be settled by that trading member.
Non-custodial institutional trade (NCIT) orders can be marked by the user at the order entry level itself. Only a valid participant code can be entered. In case the participant is suspended a message to this effect is displayed to the user on the order entry screen.
Branch Value Order Check:
In addition to the checks performed for the fields explained above, every order entry is checked for the branch order value limit. In case the set order value limit is exhausted the subsequent order is rejected by the system