Is that the way slm works?

General
1

I have short sold bosch 5 at 12000 rs and I kept slm buy order at 12300 and to my surprise they got executed at very high price 12800.

I know that slm issues market order at 12300.my expectation is it gets around 12300 50 is also fine but 12800 is unimaginable.

If that is how slm works then if any stupid guy casually keeps sell order at 13200 slm order might get executed at 13200 also which is 900 above slm order

Please clarify

2

Look for spread between offers and bid before selecting order type.

1 Like
3

how to trade in SLM Market. Can retail investor also trade in it?

4

Any Market Order (be it Buy, Sell, SLM, CO, BO) works the same way - it takes the best available price.

Suppose there is a Buy at Market (in your case SLM) order you place at 12300. There has to be someone who should sell at that time for you to buy that. If the lowest available Sell price is 12800, then your order will be executed at that price.

But that’s not all… That are further T&C. Suppose there are 20 buy orders in place at that moment and all are buying at market at the same time. There will at least some mili seconds here and there between the orders for sure. In that case, the orders will be executed in FIFO (First In First Out) basis. For simplicity I assume all are buying 1 share each. If only 2 sell orders are there at 12300, then the 1st 2 buyers will get that price. Let’s assume the next best sell price is 12303 and there are 3 shares available at that price. Then the next 3 buyers (in order) will get that price of 12303. If the next available price is 12800, then the 6th buyer will get that price - 12800 and so on…

This is all theory. But I am doubtful if such a gap of 500 will be there in a share like Bosch. You can send an email to your broker platform support to investigate the same.

Hope this clarifies your doubt.

5

That won’t be shown in depth

6

Hi, one suggestion.
Plz don’t make “statements” if you do not know anything. This is disrespect to the person trying to help you.
Search on Google what is the meaning of spread between bid and offer. And then you will yourself know if it is there to be seen in market depth or not.