Say, you need to buy or sell 5 / 6 lots of nifty or banknifty instantly… Will there be any slippage or it will get executed as soon as you click “Buy or Sell” ?
had seen 1.5 to 2pt bid/ask spreads in bank nifty futures duirng non-peak trading hourse … for 5 lots there wont be more than 2pt slippages at any point of time
Banknifty is very volatile so trade little by little instead of 5 lots at a time. Within a minute you can see atleast 10 points movement in any direction. If you place a lesser stop loss value it is more likely to book loss
5 to 6 lots does not make any sense …(its negotiable) Nifty and bank nifty dont have liquidity issue upto 500 to 1000 lots…if it so its minor slippage…
The max I’ve done is 58 lots in a single go. I had to square it off at market due to very volatile conditions. If I remember correctly I faced slippage of around 9-10 points. No matter how old you are in the market sometimes you panic with the crowd.
10 points are large if you are dealing in multiple lots.
Try to always place limit orders, and use the volatility in your favour.
You say 500 lots… banknifty 500 lots would mean 500*40 or just 500/40…? Ie 20,000 units (combined) or 500 units for execution?
I saw pretty do trade and have huge profits!
There will be slippage if you are going to place Market orders,
BankNifty - Bid and Ask difference might be from 1 point to 5-6 points during volatility.
Nifty - Bid and Ask difference might be from 1 point to 3.4 points during volatility.
Why not limit orders when you have so much of Liquidity?
It’s just my take.
Will limit order execute my order of 5 to 6 lots instantly ? But can you buy or sell at market price when using limit order ? Instant execution is very necessary for my setup.
Can you please explain why there will be slippage if I place market order ? and why not in case of limit order ?
On an avg I have seen slippages of atleast 2.5 to 3 pts in BNF with 4 lots at peak hours. That’s because mine are always executed at breakdown/breakout pts and at market.
The limit order will execute, but can’t guarantee. Limit order with the higher price than the bid/ask should do for you.
Right now the current bid/ask for BN is 24852.60 / 24856.00
You can easily lose up to 4 points if you are entering the trade
Not necessarily it will 4 points all the time.
In limit order at least you can try to get a fill.