Buy / sell limit orders get executed on same lot or different lots?

General
1

for any given futures commodity script

suppose we set a buy limit order at a given LTP

and sell limit order at another LTP

do they both execute on the same LOT or different LOTs ?

example :-

if i set a NRML BUY LIMIT for goldseptfut at 2615 .

and a NRML SELL LIMIT for goldseptfut at 2630 .

will both these orders be executed on the same lot , that is a lot is bought at 2615 and same lot is sold at 2630 or vice-versa ?

or a sepearate lot is bought at 2615 and a seperate lot is sold at 2630 ,using 2 seperate margins and showing 2 seperate trades on admin position ?

2

Hi there!

To answer your query, once both of the below orders get executed, you will not be holding any net position in “goldseptfut” i.e. as you correctly perceived, “both these orders will be executed on the same lot”.

NRML BUY LIMIT for goldseptfut at 2615
NRML SELL LIMIT for goldseptfut at 263

In short,

“Your net position for a particular scrip will always be the difference between the cumulative buy quantity and the cumulative sell quantity irrespective of the number of trades you have taken, provided you are using the same product code for all such trades.”

On the contrary if you use different product codes, i.e. NRML for buy order and MIS for sell order, you will see two different admin positions with Net quantities as 1 and -1 respectively (in lots).

Hope this helps,

Regards,

Mangesh