Call and Put options must be "LIMIT" type. It can not be executed at market price. So, how can mange our order execution? Means it always executed programmatically. I dont want order to be pending.
What can I can if Order partially executed? Suppose I want to BUY Nifty16nov8500 CE 4 Lots(75*4=300) and Order get executed only 2 lots i.e (75*2=150) then what we can do for remaining order. Its pending because of Option Trading in only LIMIT oreders.
Hey Prem, market orders are allowed on Nifty/Banknifty options. We don't allow them on Stock options because the liquidity on them is very low. There have been many cases where clients have lost lot of money placing market orders on illiquid option contracts. Assume the best bid for 1 lot is at Rs 10 and 10 lots at Rs 25. A client looks at Rs 10 and assumes he will get a fill at this and places order to buy 10 lots. 1 will get executed at Rs 10, the rest 9 at Rs 25. If the client wants to exit, he will immediately lose out Rs 15/option.
What you can do though is, place a limit buying order at much higher price than the current market price or limit selling order much below the current market price. This will act as good as market order, but will also give you protection upto the limit price you are mentioning.
Kindly reply.
Use websocket connection for getting latest market depth and find best seller and place buy order for same price.
What can I can if Order partially executed? Suppose I want to BUY Nifty16nov8500 CE 4 Lots(75*4=300) and Order get executed only 2 lots i.e (75*2=150) then what we can do for remaining order. Its pending because of Option Trading in only LIMIT oreders.
Kindly reply.
There have been many cases where clients have lost lot of money placing market orders on illiquid option contracts. Assume the best bid for 1 lot is at Rs 10 and 10 lots at Rs 25. A client looks at Rs 10 and assumes he will get a fill at this and places order to buy 10 lots. 1 will get executed at Rs 10, the rest 9 at Rs 25. If the client wants to exit, he will immediately lose out Rs 15/option.
What you can do though is, place a limit buying order at much higher price than the current market price or limit selling order much below the current market price. This will act as good as market order, but will also give you protection upto the limit price you are mentioning.