Best way to enter and exit a trade in large amount?

Let’s say, the volume of a stock is 50 crore per day on an average. I want to Buy/Sell with 50 lakh-1crore (1-2% of the total volume) at the market price, within 1-2 minutes. What is the best way?

If I invest full amount in one order, I need to pay 0.1-0.4% extra compared to the market price because of less volume. Is that ok? I mean, I moved the stock price slightly in my preferred direction for few seconds, will that help me when I exit the stock in few hours?

I am currently buying the shares in batches, like buy X shares every 5-10 seconds. Is this a good way? Should I invest all my money in one order? I cannot find anything related to this topic anywhere.

Also, how should I exit after few hours? Please advice.

With this much capital, I would prefer fno and take/give delivery, not on direct equity. If you want equity, I think “disclosed qty” might help. But again it might be harder to exit intraday trades.

And seems like you are new to trading. My advice is start with small amount, learn and grow.

Sometimes, the stock is not available in FnO or blocked. Disclosed quantity works, If I set a limit price. But limit price many times makes me miss opportunities.

I was wondering, If anyone knows, how the big institutions do Intraday trades.

Hi
Your query made me thinking and I have few non related questions

  1. When you say volume of 50 crore - does this mean, volume of 50 crore of shares or INR 50 crores equivalent of shares. I went into money control and there is a tab for Axis Bank which says Volume - 2,905,264 -does this represent the money value of shares in a day or the number of shares traded? Investopedia says it is number of shares traded?
  2. Can 50 lacks to 1 lack capital (it is a very big amount for a retail investor) really change the direction of price movement of a company until and unless, the subject company is small with relatively small volumes or if there are “only buyers” or “only sellers” market scenario.
    On 28th May total amount of FII inflow was 5,917 crore and DII purchase was 6,440. When such large amounts are on daily basis infused into the stock market, does a retail investor capital of 50l to 1 crore really change the direction of a market.

Big traders usually don’t trade in non FNO or very illiquid stock. Otherwise, it will move its price to circuit levels. If some does, intraday with such a big volume is very hard. Most probably they are doing positional trades, aka operators.

  1. I think he meant volume in terms of money value. But in volume chart, it represents the number of shares traded.

Yes correct.

It can affect the share price, but very minimal effect on market. Also, it depends on which stock he/she is trading. If it is non index stock, it won’t affect.

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Better to use execution algos to minimise the impact costs rather than doing it manually.

Interesting, I have no idea about this. Can you tell me which or what type of algorithm you are talking about? I am a program, so should be easy to implement.

Correct. But even for Big traders, it must be a challenge. If someone wants to Invest 100 crore in one FnO stock within 1-2 minutes, they must be using something, rather than placing simple limit order and hoping it gets filled.

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