With the introduction of compulsory Rolling Settlement from July 2, 2001 the trading period (T) has been reduced to one day. Obligations are netted and determined on the basis of trades done on the trading day (T). The obligations have to be settled on the second working day after the trading day in a T+2 rolling settlement scheme. Thus, there is a settlement everyday and all orders are good for day in the cash segment of the market.
With the Good For Day Tool, you can tell us for how long you want us to keep trying to fulfill your order during a trading day. If your order doesn't get executed before the close of trading today, the order automatically lapses.
The order option is typically useful when you are placing a limit order to buy or sell, because you believe the price of a particular stock will fall or rise within a trading session. And needless to say, the "We will try" is merely an expression. In reality, everything is done seamlessly by the system, untouched by human hand.
The Stop Loss Trigger Tool is actually a bit of a misnomer.
This tool is most useful in protecting your profits on an open position. The Stop Loss order is a conditional order to either Buy or Sell.
The condition being that the order is activated only when that stock trades at a specific price defined by you. As is the case in any order, you will have to specify the quantity and the limit price (or market price) at which you want the order to be executed.
And in addition you will have to specify a Trigger Price.
Only if the Exchange records a trade at the price defined as Trigger price by you, will your order will be activated.In case you choose to use a Limit price (as opposed to market price) for your Stop Loss order, you must remember the following guideline :
- - For a Buy order, the limit price must be greater than or equal to the trigger price.
- For a Sell order, the limit price must be less than or equal to the trigger price.
When do you use a Stop loss order?
The Stop Loss order is a great way for a trader to manage his exposure in the market. Lets us say that a trader wants to buy ABC company at Rs100 because he expects the price to rise to Rs120 in a short time. But he does not want to take an unnecessary risk and hence he wants to exit the trade (sell his shares) in ABC company if the price drops below Rs95.
So he first buys 100 shares at Rs100. Then to protect himself against an unexpected movement and limit his losses he would punch in a stop loss sell order for 100 shares of ABC Co. with a trigger price of Rs95. He could choose to sell with a limit price of his choice or at market price.
So if the shares of ABC drop to trade at Rs95 his order is immediately triggered and pushed into the queue for execution.
This system finds similar application in the case of short positions.
Disclosed Quantity :
The system provides a facility for entering orders with quantity conditions: DQ order allows the member to disclose only a part of the order quantity to the market. DQ (Disclosed Quantity) should not be less that 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.
