What are the common interface related mistakes that a trader would do? (watch out points)

General
1

I would like to know some common mistakes while placing orders, that you might have experienced.

I will compile from your answers and edit this post.

AastroGuru

  1. Placing a market order in AMO where the margin requirement is calculated on yesterday's closing price and today's opening price is way higher leaving your account balance negative. You need to pour in more funds, afterwise
  2. Placing a Bracket Order in Preopen or PostClose sessions
  3. Placing a Cover Order in Preopen or PostClose sessions
  4. Placing a market order as AMO in Futures and Options where opening price is not deduced like Equities, execution price could be anything that you have not expected.
  5. BTST without knowing short selling consequences
  6. Buying in NSE and selling in BSE to close the position on intraday
  7. Placing an equity MIS order between 3:10 to 3:21 pm, you cannot place, system will give error.
  8. Canceling/Modifying your CNC order between 3:30 to 3:40, you cannot cancel/modify, system will not be available, after 3:40 you cancel it.
  9. Placing a limit order in Post Close session 3:40 to 4:00 pm, you order will be considered as market order only at closing price, not as limit order as like you expected.
  10. Placing a Disc. Qty order or IOC order in Pre-open session
  11. Buying in the morning as CNC order and selling the same later as MIS while closing your position. You will get auto square off of the latter shares and delivery to your demat of former shares.
  12. Placing an order as CNC in F&O segment
  13. Calculating absolute profit/loss from Brokerage Calculator (forgetting to add stamp duty to it)
  14. Watching limits to see the balance available in trading account and using upto the last penny in it for trading and ending up in negative balance by EOD (Limits show only margin reduced and not including taxes and brokerage)
  15. You buy some shares and place a traget order as well as stop loss order manually then forgetting to cancel the stop loss/target when one gets executed and the other remains open. Few of my friends faced this issue. (Thanks to Bracket Order, this wont happen)
  16. Placing a Bracket Order and log off from your trading terminal, thinking that the Bracket Order will take care of your target and stop loss.
  17. Placing a cover order without confirming the stop loss trigger. This value gets autorefreshed to current market price when you open cover order window. Make sure you set the correct stop loss before submitting. Otherwise your trigger will execute since it is at market price.
  18. Typing errors when you modify a stop loss. Make sure you have entered correct stop loss value. This happens to me a lot.
  19. Placing a stop loss value above or below the upper and lower circuit limits respectively. Make sure you know the circuit limit for that day before trading on a scrip.
  20. Using Limit orders when you need to use Stop Loss orders to enter. When market price is 100 and you want to buy at 105 (during breakout), using a limit order buy at 105 will get you the stock at 100 itself. Make sure you use Stop Loss Orders for that.
  21. Buying new F&O contracts with the increase in margin just received from the sale of a previously held F&O contract (without knowing the consequences of 1% penalty on shortage amount, since the recent sale will not be considered as free balance). The sale amount will be considered in free balance only on T+1 day.

Nithin

  1. Placing a market order on an illiquid contract.
  2. Fat finger trades, placing 1000 instead of 100. 

$ud3$h

  1. Waiting for the order to execute when the system did actually hang
  2. Waiting for the order to execute when internet has already disconnected

Arunkumar

  1. MIS orders instead of CNC/NRML orders. This happens a lot. My friend used to get surprised when receiveing SMS around 3:22 saying that his order has been squared off. :-) Even Arun faced one it seems.

I will add as and when I get points. Please comment if some of my points are wrong.

2 Likes
2

Placing a market order on an illiquid contract.

Fat finger trades, placing 1000 instead of 100.

1 Like
3

  • System hangs.

  • Internet slows/disconnects.

1 Like
4

MIS order instead of NRML order, in nest trader default option is NRML but in web version it is MIS. I have done this mistake couple of time, one time it was a v bad trade, it had been squared off on EOD n ended up with heavy loss though the intension is to hold for few days.

5

WHY buying in NSE and selling in BSE is a wrong?

6

Astro , It means one can’t chage his mind , like buy as MIS then keep the stocks for CNC ? But as you mentioned CNC can be modified , what about MIS ? How to remain correct in MIS / CNC orders ? I am new , may be can’t ask properly … but want to be cautious.

7

You are talking about which bullet point? Give the point’s serial no please?

8

After reading Point no 11. I wish to know … Should we keep MIS & CNC orders separate ? Can’t a MIS order be changed to CNC during the day ? Like … buy MIS - change it to CNC & - sell …

9

@zero
Yeah, if you convert then no issues. I meant if you forgot to convert before 3:10 another square off will happen.

10

Mistakes what ppl do? Can you explain?

11

I really don’t know whether to call it mistake or technical glitch, but I have experienced the above difficulties/mistakes, sometimes. Means, I put in the order and wait for it to get executed, but is does not get executed, because internet has disconnected (and I think the exchange takes time to execute or there are no buyers/sellers)

12

If you buy in NSE as MIS product type and sell in BSE as MIS product type, This will not consider closing the former position you bought in NSE, selling in BSE will be considered as a separate trade.
So by evening 3:20 pm two more square offs will happen, one for NSE and one for BSE.
Hope you understand!