Rs. 3 crore order in single trade Intraday.

Ameet148

Active Member
#1
Hi

I want to know what would happen if I place an order of Rs.3 Crore in a single scrip in intraday.

Will the price spike up highly and fall down sharply back.Or will it maintain the spiked price level?

How to avoid such spikes in intraday?And is there any way where you can place an order offline by filling forms so that the prices don't fluctuate with the entry of such huge amount?

Regards
Ameet148
 

Mr.G

Well-Known Member
#2
Ahhh, Finally an equity cash question. Form filling is a very old method, before phone even, the thing is that even if you fill form or call the dealer or place order online. It will go through the exchange, mandated by gov. Now if you place a single order then you can give the dealer discretion, of how many points above he can vary from your order price. Such a big order is bound to move the market if traded in an illiquid scrip, as the dealer will continue heavy buying till he reached his discretion limit.

I have never heard of intra-day order going through form method though. :/ We do give it when we need order sending proof. The broker usually gives a whole booklet of forms when you open an account with him.

what the price action will be, that I dont know. :p
 

Vertigo_1985

Well-Known Member
#3
Hi

I want to know what would happen if I place an order of Rs.3 Crore in a single scrip in intraday.

Will the price spike up highly and fall down sharply back.Or will it maintain the spiked price level?

How to avoid such spikes in intraday?And is there any way where you can place an order offline by filling forms so that the prices don't fluctuate with the entry of such huge amount?

Regards
Ameet148
the spike after you place a market order depends on the liquidity of the scrip at that time. Near major s/r levels or whole numbers there may be sufficient liquidity to absorb your order. Other traders should be interested to buy after you to maintain that price after spike and remember that you have to exit too .
If there is no urgency to enter then you should be using limit orders rather than market orders. Btw what are you trying to do ?
 

hauler

Active Member
#4
Hi

I want to know what would happen if I place an order of Rs.3 Crore in a single scrip in intraday.

Will the price spike up highly and fall down sharply back.Or will it maintain the spiked price level?

How to avoid such spikes in intraday?And is there any way where you can place an order offline by filling forms so that the prices don't fluctuate with the entry of such huge amount?

Regards
Ameet148
3 crore is not a huge amount by large cap standards.
The best way would be to to check the daily traded volume of the scip. Get average value of the trade for last 2 weeks.
My guess is that anything below .01% of the average traded volume should not create ripples.

If you are talking of 3 crore as a huge amount then chances are that you are trying to play in a mid/small cap company.
Lets take example of Firstsource - a 1100 crore midcap company where the daily volume is around 6-7 crores. You are definitely going to make this stock go in upper circuit even without your 10% of your trades getting executed. For situations like this you need to keep patience and stagger your order over a month.

If you are trying to buy in a small cap company where daily volume is less than 1 cr, you might be better off figuring out the institutional holders or promoters and talking to them about a bulk buy wherein both buyers and sellers put the order in exchange at a small time-window and the transaction gets executed. Most of the time you will find some party interested to sell and many of these kind of transactions are done at 1-2% less than the market price by the seller to reduce any spike.
 

Giraffe

Well-Known Member
#5
Hi

I want to know what would happen if I place an order of Rs.3 Crore in a single scrip in intraday.

Will the price spike up highly and fall down sharply back.Or will it maintain the spiked price level?

How to avoid such spikes in intraday?And is there any way where you can place an order offline by filling forms so that the prices don't fluctuate with the entry of such huge amount?

Regards
Ameet148
Will depend upon the scrips and the time of the day.
Scrip: Nifty futures during hot times: Even 10 crores will be absorbed without much trouble.
Time: No scrip's volume per minute is uniform through out the day. Open and Closing time are generally characterized by higher volumes. There are volume spurts intraday but difficult to predict what time it will occur.

Illiquid stocks may hit circuits if you drop a market order that big. It's usually not done that way. These stocks are accumulated or distributed slowly unless panic selling / buying occurs.

Best is to look at the order book (market depth window) while placing the order. Place orders with discounted quantity and place multiple limit orders at different price point. Buy/Sell in small fractions and keep a close eye on the orderbook. Many a times you will see large quantities on offer, you can hit them with market orders.
 

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