If we bought NIFTY futures today and wish to sell it at the opening price of tomorrow, suppose we place a sell order AMO (after market order), what are the realistic slippages?
as the first minute candle of the day is very volatile, what to consider for backtesting?
assuming market opened at 25050, and we had placed a market order for sell (our AMO)
@zerodha ?
Not sure if it is easy to conclude on this, few days one may get very bad price as earlier we have noticed a difference of 50 to 100 points away also, but if user gives some 20 to 30 secs after opening one can avoid huge slippages but need to bear the market risk in that case.
Lets see if some experienced fut traders to pitch in.
In Index Options, especially Puts, when market gaps down big, one could even get a fav CTM price as a buyer (compared to waiting); but fut can be tricky…
understood, better to not rely on such open execution then as it can have potential for huge slippages! Thank you!
I thought derivatives are not traded in pre-open sessions and closing sessions.
yes, they are not!
our order will get executed at 9:15:00 am rate only