What will happen if Questions


#1

Hi people,

Can you please help me in figuring out what will happen in these particular scenarios. This is essential for me to know how exactly Zerodha works. I have provided examples to explain what I’m saying.

What will happen if -

  1. Trigger for two otherwise exactly same bo orders entered at the same time for the same stock are different ?

Example - A stock is at 100 and X places a buy sl bo order of 5000 quantities with trigger at 102 and another guy Y places buy sl bo order for the same quantity with trigger at 105. Both the orders are entered at the same time. Also, Let’s say the stock is so volatile that from 100 it directly goes to 110 in one second.

Then avg. buy price for both the orders will be same or greater in the case of Y’s order because of a higher trigger?

  1. A buy sl bo order is placed for such a huge quantity that it’s not entirely available within the limit price?

Example - A stock is at 100 and a buy sl bo order of 5000 quantities is placed with trigger at 102 and price at 105. The stock moves to 103 in next second and to 107 in the next. What exactly will happen here?

Correct me if I’m wrong, but I think if let’s say 2000 stocks were available for sell before the stock reached 105 then I will get those. Right? Now, what about the rest of the 3000 quantities? Will order for them be cancelled or remain in pending orders? If latter is the case then will I have to cancel them manually or is there any way around to get them cancelled automatically?

  1. After hitting the trigger at 102 in the above case, the stock starts going down i.e. 100 - 102 - 101 - 100 and so on? If I got only let’s say 1000 shares at 102 then will the rest of the orders be filled at 101, 100 and so on? Is the buy sl bo order executed only in the range of trigger price and price or anything below the limit price once the trigger is hit?

Thanks


#2

Once trigger hit they will sit at limit price given as these are not SL- market but SL-limit, so basically depends on limit price given.

Right, 2000 will be traded and rest will be pending, one has to cancel them manually.

Once trigger is hit trade can happen at any price below limit or at limit but not more than that.