Trade Margins, Order types & Product Codes
Modified on: Thu, 18 Aug, 2022 at 4:07 PM
TABLE OF CONTENTS
NOTE: NRML for Equity Cash segment and Cover Order are available only in Rocket Plus
'CNC, NRML, MIS, CO are the product codes in Cash Segment'
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.
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
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.
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.
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?
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 house account square off /MIS positions / Margin shortfall / MTM shortfall also attracts call and trade charges.
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.