Order Settings
Last updated
Last updated
Geojit Financial Services
A "Default Order" is a predetermined set of instructions that a trader can use to quickly and easily place trades without having to manually specify the order parameters/details for every trade. Default Orders can be useful for traders who have a specific set of rules that they follow while placing Orders. Examples of Default Orders include "Market Orders", "Limit Orders", and "Stop Orders".
Default Orders can be set in a trading platform to save time and ensure that trades are placed in accordance with the trader's predetermined rules.
"Order Type Setting" option is a feature provided in a trading platform that allows the user to select their preferred Order Type as the default when placing an Orders. The available Order Types may include "Limit Orders", "Market Orders", "Stop-loss Market Orders", and "Stop-Limit Orders".
Limit Orders allow the you to mention a specific price at which they are willing to buy or sell a security. Market Orders are executed at the best available price and are typically filled immediately. Stop-loss Market Orders are used to limit potential losses on a trade by selling a security when it reaches a certain price, known as the Stop Price. Stop-loss Limit Orders become limit orders to buy or sell at a specified price (or better) once the stop price is reached.
The "Order Type Setting" option allows you to customize your trading experience and choose the Order Type that best suits your trading strategy and risk management preferences. It is an important tool for traders to have control over their trades and ensure that they are executed in a way that aligns with your trading goals.
You can select the Product Type for your Orders based on your trading goals and risk tolerance. Options may include: "Intraday", "Cash Delivery", and leveraged delivery products such as "BTST" and "MTF".
It is important to consider the potential risks and rewards of each Product Type before making a selection.
If you are an Intraday Trader, you may want to set a "Stop-loss" and "Take Profit Target" for every trade. To do this, you can use the Bracket Order tool available on the trading platform.
To activate the default Bracket Order, simply click on the appropriate Button. Alternatively, you can set the Order Type to "Bracket Order" instead of regular one leg order in the order settings, and every Order Placement page will open as a Bracket Order.
The "Default Order Value" and "Default Order Size" in lots are options that can be set by you to automatically fill in the quantity field when placing an Order. This feature can save time by eliminating the need to manually enter the quantity each time an Order is placed, allowing for faster execution. However, the quantity can always be adjusted in the Order Placement Page before placing the order if desired.
The "Default Order Value" is used for "Equity Orders" and calculates the quantity based on the Current Market Price of the security. For example, if the "Default Order Value" is set to 100,000 INR and the "Current Market Price" of a security is 100 INR per share, then, the Order Placement page for that security will open with a quantity of 1,000 shares automatically filled in.On the other hand, the "Default Order Size" in lots is used for Derivative Orders, such as "Options".
For example, if the Default Order Size in lots is set to 10, the Order Placement Page for an Option will open with a quantity of 10 lots automatically filled in.
These Default Values are just suggestions and can be manually adjusted in the Order Placement Page before placing the Order.
In addition to the Default Order Value and Default Order Size in lots, you may also see options for "Maximum Order Value" in the case of Equity Market Orders and Maximum Lot Size in the case of Derivative Orders. These features are provided to give better control over your trades and help you avoid placing Orders with incorrect quantities.
For example, the default "Maximum Order Value" for equity orders may be set at 25 lakh INR, but if you know that your exposure to a single order is never more than 500,000 INR, you can reduce the Maximum Order Value to that amount to reduce your risk of making an error when entering the trade quantity.
Similarly, the Default Maximum Lot Size for derivative orders, such as "Options", may be set at 30, but if your trade size in Options is never more than five lots, you can reduce the maximum lot size to that amount to further reduce your risk of making an error. Keep in mind that these maximum values are just suggestions and can be adjusted to suit your individual trading needs.
Another option provided in the Advance Preset Settings is the "Default Percentage of the Limit Price". This feature is intended for those who prefer to place limit orders with protection, meaning if you want to use a Limit Order but also want immediate execution. This allows you to take quick Limit Order Trades and ensure execution.
Normally, when you sets a Limit Price, the Ask Price is automatically filled in. However, by the time the trade is reviewed and sent to the exchange, the price may have moved, resulting in a lack of execution. To avoid this, the you can manually set the Buy Price above the Current Bid Price to ensure immediate execution.
The "Default Percentage of the Limit Price" feature automates this process by allowing you to define a Percentage that will be added to the limit price for buy orders and subtracted from the limit price for sell orders. The default percentage for limit order : Min 0%, max 30%.
For example, if the default percentage of the limit price is set to 2% and the current best ask price is 100 INR, the limit price will be automatically set to 102 INR for buy orders and 98 INR for sell orders. This means that buy orders will be executed at any price equal to or below 102 INR, and sell orders will be executed at any price equal to or above 98 INR.
Please Note: For illiquid shares, this order may be prone to slippages as it functions like a Market Order with protection.
The platform allows you to set Default Percentages for Take Profit and Stop-loss levels for "Bracket Orders". This can be useful for traders who have a specific risk-reward ratio in mind for each trade. When these Default Values are set, each time an Order Placement Page is opened, the Take Profit and Stop-loss Levels will be automatically calculated and filled in. This can save your time and effort as you don't have to manually calculate and update these values each time. It's important to note that this feature is currently only available for Intraday Equity Orders.
Let's say a trader has a specific risk-reward ratio in mind for each trade. They aim to make a 10% profit on every trade and set their stop-loss at 5%. They can define these values in the advanced Preset Order Settings on the platform. Now, each time the trader opens an Order Placement Page to buy a security, the Take Profit and Stop-loss Levels will be automatically calculated and filled in.
For example, if the trader opens an Order Placement Page to buy a security at a price of 100 INR, the Take Profit will be automatically set at 110 INR(10% profit) and the stop-loss will be automatically set at 95 INR(5% loss). The trader can then review the order and make any necessary adjustments before placing the order.
There is a useful feature within the Advanced Preset Order Settings called "Allow Split". It is helpful for derivative traders that have a maximum number of lots per order. If you wish to place an Order that exceeds this maximum, the platform will automatically divide the order into Multiple Orders that each fall below the Maximum Limit. This ensures that the entire Order can be executed, rather than being rejected.
For example, if the maximum number of lots per order for Nifty as set by the exchange is 30, and a trader wants to place an order for 100 lots, the platform will split the order into four smaller orders of 30, 30, 30, and 10 lots. These Orders will be sent to the exchange separately, rather than as a single 100-lot order that would be rejected.
The "Allow Split" feature is only available for Nifty and Bank Nifty.
Please Note: This feature is particularly useful for large traders, as it helps to reduce the costs associated with slippage.
