With the introduction of compulsory Rolling Settlement from July 2, 2001 the
trading period (T) has been reduced to one day. Obligations are netted and
determined on the basis of trades done on the trading day (T). The obligations
have to be settled on the second working day after the trading day in a T+2
rolling settlement scheme. Thus, there is a settlement everyday and all orders
are good for day in the cash segment of the market.
With the Good For Day Tool, you can tell us for how long you want us to keep
trying to fulfill your order during a trading day. If your order doesn't get
executed before the close of trading today, the order automatically lapses.
The order option is typically useful when you are placing a limit order to buy
or sell, because you believe the price of a particular stock will fall or rise
within a trading session. And needless to say, the "We will try" is merely an
expression. In reality, everything is done seamlessly by the system, untouched
by human hand.
Stop Loss Trigger Tool
The Stop Loss Trigger Tool is actually a bit of a misnomer.
This tool is most useful in protecting your profits on an open position. The
Stop Loss order is a conditional order to either Buy or Sell.
The condition being that the order is activated only when that stock trades at
a specific price defined by you. As is the case in any order, you will have to
specify the quantity and the limit price (or market price) at which you want
the order to be executed.
And in addition you will have to specify a Trigger Price.
Only if the Exchange records a trade at the price defined as
Trigger price by you, will your order will be activated.
In case you choose to use a Limit price (as opposed to market price) for your
Stop Loss order, you must remember the following guideline :
- For a Buy order, the limit price must be greater than or
equal to the trigger price.
- For a Sell order, the limit price must be less than or equal to the trigger
If, for a stop loss order to buy, the trigger price is 93.00, the limit price
is 95.00 and the market (last trade) price is 90.00, then this order will be
released into the system once when the market price reaches or exceeds 93.00.
This order will be added to the order queue at the exchange with the time of
triggering as the time stamp, as a limit order to buy at Rs95.00. Till such
time that the order is triggered it will stay in a separate queue at the
exchange which is not visible to other market participants.
Remember even the stop loss tool is valid only for a
trading day. If your stop loss order is not triggered during the trading day,
it shall lapse automatically at the end of the trading session.
When do you use a Stop loss order?
The Stop Loss order is a great way for a trader to manage his exposure in the
market. Lets us say that a trader wants to buy ABC company at Rs100 because he
expects the price to rise to Rs120 in a short time. But he does not want to
take an unnecessary risk and hence he wants to exit the trade (sell his shares)
in ABC company if the price drops below Rs95.
So he first buys 100 shares at Rs100. Then to protect himself against an
unexpected movement and limit his losses he would punch in a stop loss sell
order for 100 shares of ABC Co. with a trigger price of Rs95. He could choose
to sell with a limit price of his choice or at market price.
So if the shares of ABC drop to trade at Rs95 his order is immediately
triggered and pushed into the queue for execution.
This system finds similar application in the case of short positions.
Disclosed Quantity :
The system provides a facility for entering orders with quantity conditions: DQ order allows the member to disclose only a part of the order quantity to the market. DQ (Disclosed Quantity) should not be less that 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.