TABLE OF CONTENTS


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


A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. For instance, if you have bought a stock at Rs 100 and you want to limit the loss at 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. Such an order is called 'Stop Loss', as you are placing it to stop a loss more than what you are ready to risk.

 

There are 2 types of Stop-Loss orders:

 

1. SL-L order (Stop-Loss Limit) = Price + Trigger Price

2. SL-M order (Stop-Loss Market) = Only Trigger Price. Note this is not available for Options as per Exchange guideline

 

Case 1 > if you have a buy position, then you will keep a sell SL

Case 2 > if you have a sell position, then you will keep a buy SL

 

In Case 1, if you have a buy position at 100 and you wish to place an SL at 95.

 

a. SL-M order type - You will place a Sell SL-M order with trigger price = 95.


Here, when the price is at 95, the order will get triggered and will be sold at any price in the market.


b. SL-L order type - If you have placed a Stop loss trigger at 95 and sell order at 94.90, it is then called a Stop Loss -Limit order. In this, you define the price at which the order needs to be triggered and also sold. Since your order needs to be triggered first, the (trigger price ≥ price.) Let's assume that 

 

In Case 2, if you have a sell position at 100 and you wish to place an SL at 105.

 

a. SL-M order type - You will place a Buy SL-M order with trigger price = 105.

Here, when the price of 105 is triggered, a buy market order will be sent to the exchange and your position will be squared off at market price.

b. SL order type - You will place a Buy SL order with price and trigger price. Since your order needs to be triggered first, (the trigger price ≤ price.) Here, this order type gives you a range of the stop-loss.

 

Let's assume a range of Rs.0.10 (10 paisa). Here, you can keep trigger price = 105 and price = 105.10. When the price of 105 is triggered, the buy limit order is sent to the exchange and your order will be squared off at the next available offer below 105.10. So, your SL order may get executed at 105.05 or 105 but not above 105.10.

 

Alternate use of SL order:

 

Since Sell SL orders are used above your buy price and Buy SL orders are used below your sell price, you can use these order types to Buy above LTP (Last Traded Price) and Sell below LTP.

 

1. To buy above LTP, you can place a Buy SL order with the price at which you want to buy.

2. To sell below LTP, you can place a Sell SL order with the price at which you want to sell.



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 


From the window that opens up, you may create a new basket, save it, load an existing basket from within the trade page, Import it from your system, Export etc.,  Note this is available in Web and Exe option only.




Advantages of a Basket Order


1) Multiple orders across segments can be placed at a time

2) Baskets can be saved and loaded at once without a need to type the order each time

3) Execution of multiple orders at a time


Precaution to be taken while placing a Basket Order


When you place a basket order, it is not necessary for all orders to be placed successfully. Few of the orders may be rejected for various purpose such as RMS block, insufficient margin etc., Hence, it is always advised to check the order book to ensure that all orders are placed successfully, after placing the basket order.  


Watch Video to know how to place a Basket Order. 



What is a Spread Order?


Spread Order is used to roll over contract from one month to another or create a hedge across 2 months. Under spread order, you may sell one month contract and buy another month or vice versa with a difference of few Rupees which is the spread price.


For example, if you want to buy Jun Bank Nifty and sell August month with a difference of 2 Rupees, you may then choose the Spread Order option from the settings menu at the top right of the page and in the window that opens up (as seen below) key in the spread price as 2 and quantity as 25 for 1 lot and in multiples of 25 from there on and submit.


This will send both the orders together to the Exchange. The Spread Order status can be seen only under Spread Order book and not in t  





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.



DayLedger 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
(E)
Permissible Purchase Value
(F)
Margin Required for Purchases made @ 20%
(G)
Total Margin Required for the day (H) =
(C)+(G)
10200000400001600002 times32000064000104000
2 - if stocks bought on Day 1 are sold-120000320000640002560002 times512000102400108800



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?


Yes, you may but it can be done only under Intraday or MIS.


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.



Can I opt for physical settlement on Derivative contracts?


 If you want to take position on the expiry day with a willingness to go for physical delivery, then the following are required


1) An email consent to support@tradeplusonline.com one day prior to expiry day to hold or take fresh position on the expiry date contract at your own risk


2) To have a POA enabled demat account with  us


3) In case of holding short positions which involves delivery of shares, the required number of shares should be available in the demat account 


4) 100% of the Contract Value should be available in the Ledger to meet obligations 


All expenses, penalties, charges, loss etc., occurring due to the physical settlement process, should be borne by the client and hence, it is suggested to understand the physical settlement process thoroughly before opting for it.