Trigger/SL execution in a MCX cover order

khushisoni894
khushisoni894 edited June 2017 in General
Two questions:-
1. Where does trigger/SL originate in case of a MCX cover order - is it zerodha who places the SL order to exchange when market price is same as trigger price or is it that once original positional order takes place, it is the exchange (MCX) which takes care of trigger?
2. If it is zerodha, which takes care of the trigger, is there a separate queue in OMS for trigger/SL orders or such SL orders also come in the same queue of positional orders?

Thanks.
  • khushisoni894
    One more question...Can I place two cover orders of opposite position at the same time - one buy with its own trigger and one sell of its own trigger?
  • sujith
    Hi @khushisoni894,
    All orders except market and limit are provided by Zerodha.
    Our OMS places limit order on the exchange when the trigger is hit.

    There is only one lease line to exchange all orders go through the same line.

    You can place two opposite cover order.
  • khushisoni894
    Thanks. When I mentioned queue, I thought of OMS queue. In other words, within OMS, are there separate queues for triggered orders vs. original positional market orders? or is there one common FIFO queue? For example, in high volume situation, if there are 1000 positional market orders in pipeline to be processed by OMS and trigger of an already executed cover/market order is then hit, will the trigger-generated order be 1001 in queue or does it get ahead within OMS and therefore gets out to exchange faster?
  • khushisoni894
    I would think trigger transaction would execute immediately and would be sent to exchange ahead of those transactions which are pending for validation etc. Please, confirm 100%. Accuracy of answer is very important as the answer one way or other would make huge difference when system is overloaded.
  • nithin
    @khushisoni894 in cover orders, the stoploss is prevalidated by our RMS. So if volatility picks and trigger is hit, this stoploss order will be ahead of the queue as compared to all the new orders getting placed at that time.
  • khushisoni894
    Wonderful...I thought so...Thank you Nithin!
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