Why did this happen in ICICIDirect?

bvpraveen · #1 14th September 2006, 05:02 PM

Hi,

Thinking of getting into my first trade,
I tried to buy one Infosys share through ICICIDirect.
Here are the details:

buy order type - limit
stop loss trigger price - 1813.25
limit price - 1813.50
quantity - 1

Actually the last traded price was somewhere near 1813.10 or so.

When I checked the status at 11a.m, it was: "...the order has triggered...", but not yet executed!, although the price of Infosys opened somewhat higher, around Rs.1818 or so..

When I see the status now(after the market closed), the status is showing: "expired".

Why??? Was there any mistake on my part?

I thought that there was some mistake in that order and hence I bought one infosys share at 11am through "market order". That got executed instantly.

So what will happen to my first one which I "bought" at 9.30am?

Thanks,
Praveen.

pranayd · #2 14th September 2006, 05:13 PM

Hi Praveen,

On NSE, Infosys opened at 1815.35 and today's low was 1815.00. Hence your limit order could not be executed and expired at the end of the day.

If you would have placed the limit order after the market opened today (at around 1815-1816), it would have been executed.

Hope that helps,

Pranay

Agilent · #3 14th September 2006, 05:41 PM

Quote:

Originally Posted by bvpraveen

Hi,

Thinking of getting into my first trade,
I tried to buy one Infosys share through ICICIDirect.
Here are the details:

buy order type - limit
stop loss trigger price - 1813.25
limit price - 1813.50
quantity - 1

Actually the last traded price was somewhere near 1813.10 or so.

When I checked the status at 11a.m, it was: "...the order has triggered...", but not yet executed!, although the price of Infosys opened somewhat higher, around Rs.1818 or so..

When I see the status now(after the market closed), the status is showing: "expired".

Why??? Was there any mistake on my part?

I thought that there was some mistake in that order and hence I bought one infosys share at 11am through "market order". That got executed instantly.

So what will happen to my first one which I "bought" at 9.30am?

Thanks,
Praveen.

Praveen
Why would anyone sell you at 1813 when there were thousands other willing to buy at higher than 1815 ?

Put yrself in the shoes of a seller

AGILENT

bvpraveen · #4 14th September 2006, 05:44 PM

Quote:

Originally Posted by pranayd

Hi Praveen,

On NSE, Infosys opened at 1815.35 and today's low was 1815.00. Hence your limit order could not be executed and expired at the end of the day.

If you would have placed the limit order after the market opened today (at around 1815-1816), it would have been executed.

Hope that helps,

Pranay

Hi Pranay,

But limit order means that the order should get executed when the price is "atleast" the specifid limit price, right? Hence in my case, since Rs.1815 > Rs.1813.50, it should have got executed.

Just my view.

Praveen.

bvpraveen · #5 14th September 2006, 05:48 PM

Quote:

Originally Posted by Agilent

Praveen
Why would anyone sell you at 1813 when there were thousands other willing to buy at higher than 1815 ?

Put yrself in the shoes of a seller

AGILENT

Oh....

Then how should I put an order for my constraint: "buy 1 share at what ever price it is, at tomorrow morning, when the market opens".

Actually I tried to implement this constraint only.

There were two options::

option1: market order
It said one can't put an order when the market is closed. Ofcourse I too know about it.

option2(the only other option): limit order. I too know about this.

But since I couldn't find any other option for my constraint, i thought that this is the one, which i've to use.

Thanks,
Praveen.

murthymsr · #6 14th September 2006, 07:21 PM

Quote:

Originally Posted by bvpraveen

.........................
buy order type - limit
stop loss trigger price - 1813.25
limit price - 1813.50
quantity - 1

Actually the last traded price was somewhere near 1813.10 or so.

When I checked the status at 11a.m, it was: "...the order has triggered...", but not yet executed!, although the price of Infosys opened somewhat higher, around Rs.1818 or so..
....................
Praveen.

today's low was 1815.00, which might have occurred at around 11:46. this being higher than the limit buy order price of 1813.50, the order was not executed. this is how i understood the reason.

another hypothetical situation: SUPPOSE, the low recorded is 1813.50. then the order may be executed (if you are lucky) or may not be executed (another person with the similar limited order placed earlier than yourself) or may be part executed (the quantity offered for sale may be less than your purchase order quantity). such situations are more likely to happen in low value/ high volume stocks.

while matching the buy and sell orders, the buy/sell offer prices, whether they are market orders or limit orders and the time of placing orders will be considered, and then the orders will be matched for quantity.

any further elaboration of the process & reasons are welcome, particularly the stop-loss trigger price.

MurthyMSR

bvpraveen · #7 14th September 2006, 07:43 PM

Hi Murthy,

Thanks for your explanation.

One answer to this question will put an end to all this: Then how should I put an order for my constraint: "buy 1 share at what ever price it is, at tomorrow morning, when the market opens".

Praveen.

murthymsr · #8 14th September 2006, 08:23 PM

Quote:

Originally Posted by bvpraveen

Hi Murthy,

Thanks for your explanation.

One answer to this question will put an end to all this: Then how should I put an order for my constraint: "buy 1 share at what ever price it is, at tomorrow morning, when the market opens".

Praveen.

this answer is on the assumption that the order is through ICICI on NSE exchange.

before the market opens, you can place a limit order only and NOT a market order.

you may place a market order AFTER market opens or place a limit order with a higher limit. but again, what is the use of buying at a much a higher price, as it reduces your chances of making a profit out of this trade?

MurthyMSR

bvpraveen · #9 14th September 2006, 08:56 PM

Quote:

Originally Posted by murthymsr

this answer is on the assumption that the order is through ICICI on NSE exchange.

before the market opens, you can place a limit order only and NOT a market order.

you may place a market order AFTER market opens or place a limit order with a higher limit. but again, what is the use of buying at a much a higher price, as it reduces your chances of making a profit out of this trade?

MurthyMSR

Hi Murthy,

Your assumption is correct - trading in NSE through ICICIDirect.

1. So you mean that one can't place orders(buy at next trading sessions starting price) before the trade, like late evening,etc?

2. Then how does the stock open with a gap?

Please bear if I'm bugging you.
Praveen.

aca_trader · #10 14th September 2006, 09:03 PM

Quote:

Originally Posted by bvpraveen

Hi Murthy,

Your assumption is correct - trading in NSE through ICICIDirect.

1. So you mean that one can't place orders(buy at next trading sessions starting price) before the trade, like late evening,etc?

2. Then how does the stock open with a gap?

Please bear if I'm bugging you.
Praveen.

One can place orders before start of the trading session but then he has to specify the limit. No order without a limit can be placed before/after market hours.

Further, a buy order is triggered if and only if the price is lower than or is equal to the limit price while a sell is triggered if the price is higher than or is equal to the limit price.

Best Regards,
--Ashish

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