Both Entry & Exit orders can be placed via Limit/SL-L orders or Market orders. Here are some frequently asked questions about our Limit/SL-L order feature used with the Live Execution feature in our Algo Trading Software.
A SL-L order needs to define its trigger and the limit price. Trigger price is the price at which your buy or sell order becomes active for execution. Once the price of the option hits the trigger price set by you, a limit order, with the price set by you, becomes active for execution on the exchange servers.
You can set the trigger and the limit price using the trigger and limit buffer both in terms of points or percentage. Say you Sell BANKNIFTY CE 38000 for Rs 100 and define a stop loss of 30% to it, which means your stop loss is at Rs 130. You then select the order type as “Limit”, choose buffer type as “Points”, trigger buffer as 1, and limit buffer as 2. In this case, a SL-L order will be placed in your broker’s order book as follows: Trigger price = 130 – 1 = Rs 129 & Limit Price = 130 + 2 = Rs 132. This means, as soon as the LTP breaches trigger price of Rs 129 a Limit order of Rs 132 becomes active for execution on the exchange servers.
Positions can be entered using Limit/SL-L orders. The order settings will be as follows:
Positions can be exited using Limit/SL-L orders. The order settings will be as follows:
Sometimes sudden moves in the market, especially during expiry, lead to a spike in option prices due to the gamma effect. In such situations, having an SL-L order in the order book helps control slippages. As soon as the trigger price is breached, your LIMIT order with the defined LIMIT price based on your limit buffer is sent to the exchange. So in most cases , the maximum slippage you suffer is the limit buffer.
Whereas in such cases if a Market order is sent, no one can predict at what price, above or below your SL price, will the order be fulfilled.
A SL-L order is sent to your broker’s order book at the time of entry. Once the LTP of the option hits the trigger price set by you, a limit order, who’s price is also set by you, is active for execution on the exchange servers. In some rare cases, the price movement is so violent that the price of the option moves above the limit price before your limit order is fulfilled. Hence, your limit order remains unfulfilled. A Limit order can also skip if there is a delay, among other things, from your broker in placing the order at the time of entry or exit.
In order to avoid such a situation, we have a “Convert to Market After” dial. The “Convert to Market After” feature can have a possible value from 1 sec – 20 secs. Once a Limit/SL-L order skips, AlgoTest will keep modifying the limit based on the current LTP + the Limit buffer till the order is fulfilled or Converted to Market after the specified time.
IMPORTANT: DHAN does not allow modification of SL-L order to limit. Hence if the SL-L order skips the order is converted to market. Similarly at the time of exit, the order is directly converted to market.
We do not suggest making changes to your SL-L order as it may lead to an error in execution of your strategy. If you would like to make any manual intervention, we recommend changing the status of the strategy to manual first and then making any changes.
Yes, the trigger price can be ZERO. But the limit order is rejected if the trigger and limit buffer are both kept at ZERO.
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I added 300 starter plan and also add 100 credit in live section. Still im not able to see my stratagies in live market section. Whats the problem.
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