I would like to place a large order in NSE but am worried about the market impact cost because i would like to scalp. If anyone has some experience with placing large orders can you give some tips on managing market impact of the order.
I believe placing a large order which will impact market price and doing scalping on that particular scrip is not possible.
Better select a scrip which is not impacted by your order as that is the primary requirement to scalp.
When you say “a scrip which is not impacted by your order”, how much of a price movement because of my order would be counted as “impacting the script”. I am thinking of scalping in low price scrip such as HDIL which have a relatively high volume as compared to other scrips of comparative price. Your comments are appreciated.
Start with small quantity and keep on increasing and at onepoint of time you will only notice by yourself which quantity is reasonsable for particular scrip.