How much time does it take to execute orders when markets open?
The reason I ask this is because when markets open, I have observed that even though I place IOC orders at 9:15:02, they are executed only around 9:15:40. Since they are IOC, limit kind of orders obviously they would not be executed. But for those 40 seconds I do not know the status.
After 9:16:00 an order placed at 9:16:03 is executed by 9:16:04.
Abhishek, the first minute of a day is kind of a lottery in terms of how fast your orders can execute. Here are a bunch of factors that determine how much time it will take
1. NSE itself has capacity to handle around 1.6lk orders per second (I'd say more around 1lk per second). Anything more, the orders get into a queue following a FIFO. Also the first few seconds, orders coming from the exchange collocation (the HFT guys and all) has a big edge over others as they connect to exchange servers over LAN. 2. Every broker connects to the exchange over leased lines that has a certain capacity. The default what exchanges give is something that can handle around 40 orders per second. At Zerodha we are at around 500+ orders per second, for sure the most among retail brokerage firms. So again, it depends on how many of our clients have placed an order right at the open. Anything more than the capacity, the order gets into a queue.
For all practical purposes, I think any retail trader shouldn't expect catching trades in the first 30 seconds, especially more on volatile days.
1. NSE itself has capacity to handle around 1.6lk orders per second (I'd say more around 1lk per second). Anything more, the orders get into a queue following a FIFO. Also the first few seconds, orders coming from the exchange collocation (the HFT guys and all) has a big edge over others as they connect to exchange servers over LAN.
2. Every broker connects to the exchange over leased lines that has a certain capacity. The default what exchanges give is something that can handle around 40 orders per second. At Zerodha we are at around 500+ orders per second, for sure the most among retail brokerage firms. So again, it depends on how many of our clients have placed an order right at the open. Anything more than the capacity, the order gets into a queue.
For all practical purposes, I think any retail trader shouldn't expect catching trades in the first 30 seconds, especially more on volatile days.