Hmm… the previous day’s closing price has no bearing when the market opens the next trading day. Your SL or limit orders will get executed only based on the traded prices the next day. Also when trading opens, all orders are queued up at every price with time priority (orders placed earlier, ahead in the queue) and your order execution depends on if all orders ahead of your order in the queue are executed first.
This applies to everyone and not just retail traders.
I am using the previous days price just as a reference point for entry. I understand it has very little to do with the next day.
The queue that you are talking about, is it the queue of orders placed in the ‘pre-market’ session of 9.00 to 9.07 or between 9-08 to 9.10 am where AMO orders are still accepted.
The reason I am asking this is because the prices are settled at equilibrium price only after the pre-market session right. So one would only place orders post it, right ?
Please pardon my silly questions, I am working on an algo/strategy and the foundation needs to be rock solid in this case.
A question from a newbie trader to an experienced trader - Is it really possible to execute the order at a limit price in the way I mentioned above. If yes, can you please suggest the best possible way. If no, we can get back to what we were doing. Another thing that crossed my mind was that, there must be some mechanism to decide which broker’s orders are executed first at the NSE systems. Maybe I am thinking too much, may be I am on the right track.