What are the advantages and disadvantages of disclosed quantity in Equity intraday trade?

General
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Disclosed quantity basically helps you hide the exact quantity that you buy or sell, you could place an order by mentioning the disclosing quantity which is then sent to exchange, where only the disclosed quantity will show. This is advantageous for people who trade in big quantities, as it plays a big role and the market will keep revolving around it most of the times and the orders don’t get executed sometimes.

Note: The disclosed quantity has to be a minimum 10% of the order size.
Example: Order placed for 1000 shares, Disc quantity 100 shares

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Advantage of DQ order:

  • Only the amount specified as disc. qty will get displayed in the market depth window of all trading terminals. If people see you have placed a large order, they will correct their orders to a price value before yours' so that they need not wait in queue. So it will take huge time, or your order may not get executed and market could go down.

Points to ponder on DQ orders:

  • Its not allowed in PreOpen or PostClose session
  • You need to specify atleast 10% of the order quantity, not less than that.
  • Yes, as Nithin said, you need to type an additional number while placing the order :)
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Useful in case of illiquid scripts or incase of bulk or large selling orders by the financial institutions or FIIs.

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There is no disadvantage for you at all, the only thing is that you will have an extra number to add while placing your order, that’s it.

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Dear Nithin,
Why zerodha charging seperately for each order executed as disclosed qty.
Yesterday i made an order of SBIN 300 BUY order and executed. later when i sell, i noticed it as three separate order and zerodha charged for 3 order seperately. why???
Is it a game from zerodha?

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