TABLE OF CONTENTS
- What are the common type of Orders?
- What are the different Product Codes found in the Order Form?
- Video Explanation on each Product type found in Order Form
- More about Stop Loss Order
- What is a Cover Order?
- What is a Basket Order?
- What is a Spread Order?
- Can a limit order be executed at a different price?
- Can I place an order and keep it valid till post closing session?
- Can I place an order and leave it in the system till it gets executed?
- My order got executed but I do not see my price coming anywhere, in price statistics or in the chart.
- Can I sell a stock and use the sale proceeds for buying on the same day?
- Can I trade in Options on the Expiry day?
- I did not convert my Options NRML position. Why is it showing under MIS?
- Can I opt for physical settlement on Derivative contracts?
What are the common type of Orders?
Watch Video to know how to place different Orders
NOTE NRML for Equity Cash segment and Cover Order are available only in Rocket Plus
What are the different Product Codes found in the Order Form?
Video Explanation on each Product type found in Order Form
More about Stop Loss Order
What is a Cover Order?
A cover order is a special type of order in which you may place a buy / sell leg along with a stop loss order. Cover orders are by default, market orders and the trigger price needs to be within the range as suggested in the order form. Watch Video to know how to place a Cover Order in Rocket Plus
Cover Order can be placed only in select set of stocks which is subject change from time to time. Cover Order facility is available only in Rocket Plus
What is a Basket Order?
Basket Order is where you group a number of orders and place them at one go. This is mostly used when you want to repeatedly place a set of orders without keying them again and again.
Basket Orders can be placed in Rocket Plus and to place it, select the Settings menu at the right top of the page as highlighted below and choose - Basket Order from the drop down
What is a Spread Order?
Can a limit order be executed at a different price?
Yes, this is possible. A limit order is basically an instruction to buy or sell a stock/ instrument at a particular price or a better price. Hence, if you had placed a buy order for a stock, say at Rupees 100 and the stock trades at 98 when you placed the limit order, your buy order will be traded at 98 as it was better than Rupees 100 that you had mentioned. Similarly, if you had placed a sell order at Rupees 100 when the stock trades at Rupees 102, your sell order will get traded at Rupees 102 as it is better than 100.
Can I place an order and keep it valid till post closing session?
Yes, but that is possible only in BSE. You will find a validity type as Day, EOS, IOC in the order form. EOS is basically End of Session and will expire at 3.30pm once the market closes. You need to sell 'Day' and place an order to let it continue till the post closing session. It will lose its validity after the post closing session.
Can I place an order and leave it in the system till it gets executed?
Yes, this is called GTT or Good Till Triggered Orders. We have already seen about Stop Loss Limit, Stop Loss Market, IOC and AMO or After Market Orders in video on different order types. Now let's see what a GTT is. Normal orders are valid only for the day on which they are placed and they get flushed out once the market gets closed. If you want to place a buy or a sell order that stays in the system till it gets executed and doesn't want to repeat it on daily basis till it gets triggered, you may then choose GTT order type.
NOTE GTT can be placed only in Rocket Plus (RP). Click here to upgrade to RP
2 types of prices, trigger price and order price, needs to be specified in a GTT order as seen below.
GTT orders will be maintained in Tradeplus server until the trigger price is hit. Once the trigger price hits, which is 3400 in the above example, the order will be pushed from the the server to the Exchange and the buy order will be executed at 3410 or a better price. As GTT will be maintained at Tradeplus server and not be pushed to Exchange till the trigger price is hit, it will not check for margins / demat holdings at the time of placing orders. These parameters and other RMS requirements will be monitored only at the time of pushing order to the Exchange.
Watch Video to know how to place a GTT Order
GTT orders will be executed only when certain conditions are fulfilled. Read here to know more on GTT.
My order got executed but I do not see my price coming anywhere, in price statistics or in the chart.
This is possible when your orders gets matched among millions of bid and ask ticks which occurs in the Exchange. Trading is technology driven and with the help of technology, millions of ticks, including ask and bid rates flash through the process of converting an order to trade. The Charts or statistics within a defined interval, say for a second, captures only 1 tick for a second while there could be hundreds otherticks or trades occurring within that 1 second and it is highly impossible to capture all of them in the chart or the statistics.
You may however, always cross verify the genuineness of your trades checking the Open, high, low close data for that day in the Exchanges' website. It can also be verified in the Trade Verification module within 5 working day, as provided by various Exchanges viz, NSE, BSE and MCX.
NSE will have all the ticks captured under Tick by Tick data feeds and it is best captured in NSE Co-location or within the Exchange premises. This feed costs too high as compared to normal data feed and can be subscribed from NSE's authorized data vendors.
Can I sell a stock and use the sale proceeds for buying on the same day?
No, you cannot sell a stock from demat account and use the sale proceeds for further trading on the same day. This is because, at Tradeplus, you can buy selected stocks 2 times of your available margin. Let's understand how this prevents you from using sale value for further purchase on the same day.
For every purchase or sale, there should be sufficient margin/ stock available before the order is placed else, it will attract peak margin penalty. A minimum of 20% is required as margin for each purchase or sale and the % of requirement differs for one stock to another. When you sell a stock, the margin for sale will be automatically met as they are already available in the demat account and it will be moved for pay-in at the End of the Day, if sold. Similarly there should be sufficient margin before you buy a stock. The sale proceeds cannot be considered as margin to buy a stock as they are available for margin purpose only on the next day and hence, purchases against the sale value can be made only on the next day.
|Day||Ledger Balance at the beginning of the day (A)||Sale Value (B)||Margin Required @ 20% (C)||Remaining Margin available to take fresh positions (D)||Leverage available|
|Permissible Purchase Value|
|Margin Required for Purchases made @ 20%|
|Total Margin Required for the day (H) =|
|2 - if stocks bought on Day 1 are sold||-120000||320000||64000||256000||2 times||512000||102400||108800|
As seen above, on day 1, the peak margin requirement, as seen in the last column, will be met even if fresh purchases are made against the sale value. To illustrate, margin required to execute trades on day 1 is 1.04 lakhs as seen in column (H) and these will be easily met with the sale value of 2 lakhs. However on day 2, if stocks bought on day 1 are sold, it will attract peak margin penalty as the ledger carries negative balance as seen in column (A).
As most of our clients use 2 times leverage and also do BTST, we do not allow the sale proceeds to be used for for fresh purchases on the same day. It may however, be used on the next day.
Can I buy a stock in NSE segment and sell it in BSE or vice versa on the same day?
Yes, with the introduction of interoperability, you may buy and sell stocks across Exchanges. To explain, you may buy Reliance Industries in NSE and cover the position by selling it in BSE before the market closes. At the End of the Day, this trade will be posted as Intraday trading in your ledger.
Does this give you an opportunity to do arbitrage trade across Exchanges. Think!
Can I trade in Options on the Expiry day?
I did not convert my Options NRML position. Why is it showing under MIS?
This will happen to your stock options positions on the expiry day. On the expiry day, all stock options positions will be converted from NRML to MIS to ensure that they are squared off and not left open at the End of the day. Contracts which are ITM and are not closed should be updated as 'Do not Exercise' unless and until you specifically want to take physical delivery. If NRML positions are not converted to MIS on the expiry day, there are possibilities of higher number of positions left uncovered at the end of the day, which needs to be manually processed as 'Do Not Exercise' Options. Hence, to avoid this all NRML Stock Options positions will be converted to MIS on the Expiry day.