Trade Margins, Order types & Product Codes
TABLE OF CONTENTS
- What are the common type of Orders?
- What are the different Product Codes found in the Order Form?
- More about Stop Loss Order
- My Stop Loss Order got triggered but the order did not get executed. Why?
- Can I place an order and keep it valid till post closing session?
- 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?
- What is Call and Trade Facility?
- Can I get confirmation of the orders placed over the Call and Trade Desk?
What are the common type of Orders?
NOTE: NRML for Equity Cash segment and Cover Order are available only in Rocket Plus
Product Codes in the Order Form for Cash segment?
'CNC, NRML, MIS, CO are the product codes in Cash Segment'
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
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.
This is a Sell SL order with price and trigger price. Since your order needs to be triggered first, (the trigger price, preferably, should be higher than or equal to the price).
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-L order type
If you have placed a Stop loss trigger at 105 and sell order at 105.10, 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.
This is a Buy SL order order with price and trigger price. Since your order needs to be triggered first, (the trigger price, preferably, should be less than or equal to price).
My Stop Loss Order got triggered but the order did not get executed. Why?
Let's assume that you have placed a sell stop loss with a trigger of 95 and limit price of 95.50. When the LTP of the stock touches 95, the stop loss order gets triggered and looks to sell the stock at the limit price of 95.50 (as mentioned) or any other price higher than this.
If due to volatility, the stock touches 95 but immediately after that it drops down to 94.5 without touching 95.50, then your order will get triggered the moment the stock touches 95 but will not get executed as the limit price of 95.50 was not touched.
Therefore, in case of Sell SL, it is always preferable to keep your trigger price slightly higher than the limit price.
This will be vice versa for buy stop loss limit orders.
Let's assume that you have placed a buy stop loss with a trigger of 95 and limit price of 94.50. When the LTP of the stock touches 95, the stop loss order gets triggered and looks to buy the stock at the limit price of 94.50 (as mentioned) or any other price lower than this.
If due to volatility, the stock touches 95 but immediately after that it moves up to 95.5 without touching 94.50, then your order will get triggered the moment the stock touches 95 but will not get executed as the limit price of 94.50 was not touched.
Therefore, in case of Buy SL, it is always preferable to keep your trigger price slightly lower than the limit price.
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.
Which instruments are available for trading under GTT?
Following are available for trading in GTT
- All Equity stocks trading in NSE
- 'A' Group stocks in BSE
- All current month contracts in Equity, Commodity and Currency.
These are subject to change from time to time without serving prior notice by Tradeplus and are also subject to our Internal Risk Management Policies.
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.
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 from our Support Portal 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.
What is Call and Trade Facility?
Call and trade is a facility offered by TRADEPLUS for placing orders through our Centralized Dealing Desk for your convenience at a cost . Call and trade charges would be applicable for traded orders, placed either through our dealing terminal or squared off through ADMIN terminal. Further, ADMIN square off of the following positions like square off on account of debit/MIS positions / Margin shortfall / MTM shortfall also attracts call and trade charges.
Call n trade will be charged @75 per day plus applicable taxes, irrespective of the number of traded orders placed during the day.
You may reach us at
Primary Call N Trade direct number : 08037017382
We do aim to attend to all your calls for placing orders and would try our best to minimize waiting time.
Can I email my orders to the dealing desk?
No, we do not recommend you to email your orders as there could be a time delay in placing the same. We advise and recommend our customers to call the dealing desk to ensure timely placing of orders.
Can I get confirmation of the orders placed over the Call and Trade Desk?
You will get a confirmation on line, while your orders are placed based on your request. In addition to this, you will get an email and SMS with details of your trades at the End of Day, to your registered contact detail which is updated in our records. We therefore, suggest you to keep your contact details updated to receive these important message from us.
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