Tips for executing large orders

I’m a scalper and have made a decent amount doing so with weekly options. I have preferred trading during low volatility duration of the day and pocketed small profits and have always kept a SL( often intended to protect my profits ,rather than curtail losses; since I never let a trade which has gone into profit(including charges) turn into losses ). Of late, I am find that my method has kind of obsolete with large orders.

  1. For example, executing a buy order amounting 3L on Nifty near week closest OTM options almost always causes more than 1% in slippages.
  2. Couldn’t execute orders more than 3-4L in single order( limit of 7500 in Nifty). So have to place multiple orders. So have to execute orders in tranches. Problem with this is that I have to constantly modify trailing SL for all my orders. ( I don’t use Bracket order because for such large orders, they get executed in large number of separate orders, increasing brokerage manifold amounting to neutralising the scalping profits.)

Therefore my primary concern is slippages and multiple orders. Few of my friends have told me to split orders or use automated order placing tools. Could some of you help me with this.
Few have asked me to diversify into different assets class, like stock options or futures. I don’t do this due to few reasons. Bid-Ask spread in stock options is too bad for my taste and scalping. And they have worse liquidity than index options and more slippages. Charges are high for scalping in futures( and in leverage intraday in equities).

Another suggestion was to use disclosed quantity option while filling option. But I couldn’t understand how it helps avoid slippages. Can anybody throw some light on it?

Are there any more techniques or methods to do relatively large scalping trades in BN and NF options for retailers (say amounting to 35-40L)in least amount of time so as the opportunity doesn’t passes by?
Any extra suggestions and
@nithin @Sensibull

We are working on something :slight_smile: give us a few more weeks. Don’t know if you saw this on the last post we had written. Solving to reduce the impact cost is one of the top items on our to-do list now.

3 Likes

Awesome :+1:

Great.

I have always been in support of Zerodha but the recent quantity limit is really a headache. The limit should be increased in big stocks and stocks which have high liquidity. I don’t know how to express the pain while executing over 100K shares of stocks like Idea or south ind bank. Please roll out the basket order or whatever which simplifies the process.