Limit order with Bracket order

Bidy

New Member
#1
Hi

is there any indian full service broker like sharekhan offers limit order with Bracket order? I have Zerodha account but Bracket order is market order. please let me know. thanks
 

Bidy

New Member
#3
yes, actually want to have some mechanism where I can place order like MT4.
is there any broker in India provide those functionality like buy/sell stop/limit order? is there any for nifty future trading. TIA
 

pannet1

Well-Known Member
#4
yes, actually want to have some mechanism where I can place order like MT4.
is there any broker in India provide those functionality like buy/sell stop/limit order? is there any for nifty future trading. TIA
Hi Bidy,

I am also in the same boat. It was little confusing at the beginning. Use SL order for all your STOP and LIMIT entries. Actually the fill happens when the price reaches the trigger value. It may happen many times that prices passed through your order without touching the trigger price. so beware.
 
#5
Hi Bidy,

It may happen many times that prices passed through your order without touching the trigger price. so beware.
Sir, This is very unlikely. Let us say you buy something at 300 and price is now at 310. You put a stop loss order as follows:

Trigger price: 307.50
Limit price: 307.25

When the highest bid reached 307.5, the system will place a limit sell order at 307.25. If there is a buyer at 307.25 then your order will be executed else it will remain pending in the system. It is not necessary that the last traded price is equivalent to your trigger price. Even if the bid/ask hits your trigger then order will be placed.
 

pannet1

Well-Known Member
#6
Sir, This is very unlikely. Let us say you buy something at 300 and price is now at 310. You put a stop loss order as follows:

Trigger price: 307.50
Limit price: 307.25

When the highest bid reached 307.5, the system will place a limit sell order at 307.25. If there is a buyer at 307.25 then your order will be executed else it will remain pending in the system. It is not necessary that the last traded price is equivalent to your trigger price. Even if the bid/ask hits your trigger then order will be placed.
Hi NoviceStockTrader,

Thank you for the clarification. I want some more.

Today I had had an overnight BANKNIFTY01DEC1618400PE at an average of Rs 200. When price reached Rs 230, I had placed a SL order for the following price.

Trigger price: 225.05
Limit price: 225.00

At about 10:43 A.M. price moved down below 225 and my order did not get filled. I had to chase the price and I placed another order with the following price.

Trigger price: 211.00
Limit price: 210.00

Guess what, at 10:46 again this order also did not get filled. Luckily for me the price moved up a little and I got out at 212. What if the price increased very fast and never returned.

I believe either something is wrong with the Broker or with the Web Terminal I am using.

Is it normal with you guys. Please clarify, I am seriously thinking of changing my broker.
 
#7
Hi NoviceStockTrader,

Thank you for the clarification. I want some more.

Today I had had an overnight BANKNIFTY01DEC1618400PE at an average of Rs 200. When price reached Rs 230, I had placed a SL order for the following price.

Trigger price: 225.05
Limit price: 225.00

At about 10:43 A.M. price moved down below 225 and my order did not get filled. I had to chase the price and I placed another order with the following price.

Trigger price: 211.00
Limit price: 210.00

Guess what, at 10:46 again this order also did not get filled. Luckily for me the price moved up a little and I got out at 212. What if the price increased very fast and never returned.

I believe either something is wrong with the Broker or with the Web Terminal I am using.

Is it normal with you guys. Please clarify, I am seriously thinking of changing my broker.

Hi,

Yes that can happen. What you have to remember is that you are placing a Stop loss "limit order" which means that your trade will be placed for execution at the limit you have mentioned. But if there are no suitable bids from buyers at that price or closest tolerance as established by the exchange, your order wont be executed.
Even with your second order, the best bids were lower than 211 and hence it wasn't executed.

Bank Nifty can be volatile. If you are too scared of missing stops, you can place a "Stop loss market order". Here you will specify only the trigger price. When your trigger is hit, your order is dumped for execution at the best market price available. Since Bank nifty pe/ce are very liquid, you may have some slippage say 3-4 points but you can be sure that your order will be executed. But on ill-liquid instruments, you have different consequences.

Trades are placed on the exchange servers via your brokers terminal. They are not executed on your brokers terminal so blaming broker may not be apt unless he doesnt pass on your orders to the exchange in the first place. Which broker do you use?

Yes, there have been a couple of instances with me when stops got jumped specially when price move were extremely volatile.
 

pannet1

Well-Known Member
#8
Hi,

Yes that can happen. What you have to remember is that you are placing a Stop loss "limit order" which means that your trade will be placed for execution at the limit you have mentioned. But if there are no suitable bids from buyers at that price or closest tolerance as established by the exchange, your order wont be executed.
Even with your second order, the best bids were lower than 211 and hence it wasn't executed.

Bank Nifty can be volatile. If you are too scared of missing stops, you can place a "Stop loss market order". Here you will specify only the trigger price. When your trigger is hit, your order is dumped for execution at the best market price available. Since Bank nifty pe/ce are very liquid, you may have some slippage say 3-4 points but you can be sure that your order will be executed. But on ill-liquid instruments, you have different consequences.

Trades are placed on the exchange servers via your brokers terminal. They are not executed on your brokers terminal so blaming broker may not be apt unless he doesnt pass on your orders to the exchange in the first place. Which broker do you use?

Yes, there have been a couple of instances with me when stops got jumped specially when price move were extremely volatile.
0Dha :).

Thanks for the post and wisdom.
 

mastermind007

Well-Known Member
#10
Hi NoviceStockTrader,

Thank you for the clarification. I want some more.

Today I had had an overnight BANKNIFTY01DEC1618400PE at an average of Rs 200. When price reached Rs 230, I had placed a SL order for the following price.

Trigger price: 225.05
Limit price: 225.00

At about 10:43 A.M. price moved down below 225 and my order did not get filled. I had to chase the price and I placed another order with the following price.

Trigger price: 211.00
Limit price: 210.00

Guess what, at 10:46 again this order also did not get filled. Luckily for me the price moved up a little and I got out at 212. What if the price increased very fast and never returned.

I believe either something is wrong with the Broker or with the Web Terminal I am using.

Is it normal with you guys. Please clarify, I am seriously thinking of changing my broker.
Hello Pannet, NoviceStocktrader and others

I did notice that this is quite old question but still answering it because it is one of the common problem for a newcomer. Each broker terminal is different in UI. Some provide additional drop-down but the actual mechanism at the exchange relies and works on two prices.

Chances are that there was nothing wrong with the broker terminal on that day. You just did not understand how it is meant to work.
Limit Price and Trigger Price work against each other like two opposite arms of a scissor.

One another reason for reply is that the statement made by NoviceStockTrader in his Post Link to post
Hi NoviceStockTrader,
.... Even if the bid/ask hits your trigger then order will be placed. ....
is not entirely correct

I shall attempt to explain the logic behind order filling and also rectifying the wrong assertion made by NoviceTrader.

Lets assume you bought some stock at 200 and its LTP is now at 230. Now, you wish to place the stop loss at 220.
Since we already bought, we would have to place a sell order at 220. For it to be classified as stop loss order, you *MUST* provide
a trigger price. Providing Limit price is optional. But Trigger price is MUST.

Whenever the Trigger price is used, Order Status must cycle thru "Pending" to "Triggered" before it can reach "Executed". The order
cannot go directly from "Pending" to "Executed"

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In your example case, before 10:43 A.M., your order was "Pending" and yet to be "Triggered"
Then, at about 10:43 A.M., LTP or Bid moved below 225.05 causing the order to reach "Triggered" status. But, It did not get executed because the limit price prevented it because LTP/Bid was already below 225.
You had set limit to 225 so it would sell it only at or above 225 but LTP/Bid was already below 225. It would place price of 225
with your quantity in the Ask queue and wait until it is executed.

Same thing was repeated at 10:46 A.M. for price pair 211 and 210. Price jumped from above 211 to below 210 in very short span of time.

In highly volatile scrips or low liquidity scenarios, it is quite common for order to get triggered but not executed. If it happens frequently, either increase the gap between the limit and the trigger or do not provide limit price at all.

Whenever the limit price is not provided in a stop loss order, the order will be converted into market order and executed immediately upon trigger as long as there is some other counter trader.
 

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