While the trade got executed at market price in icicidirect, the zerodha one just kept pending since it was a limit order and the price kept going down. I modified it once and then cancelled when it did not execute even at a lower price.
How can this be?
Does zerodha have a different bid spread than icicidirect? If not then why trades are not executing.
Why does zerodha say that exchange does not allow market price execution when same trade is easily and immediately executed on icicidirect?
Thankyou Ajay. But it doesn’t. I understand liquidity and market orders. What I can’t fathom is how come icicidirect is allowing and zerodha is not. Also why zerodha limit orders are not being executed even when the stock is liquid. Bid ask is within few decimal places of each other. Same trade executed beautifully on icicidirect at market price. And this is not the first time , i have been trading for 8 years now. Why zerodha doesn’t allow market order execution of options while icicidirect does baffles me. It is supposed to be an exchange regulation or is it broker’s whims.
I think its for avoiding customer complaints/queries whenever the order gets executed at much higher price due to bid difference. Even Nithin answered the same. link to the thread
Hi @atul_sethi, we do not allow market orders for stock opens as they are illiquid and increases the impact cost, money lost due to wide bid and ask prices. You can learn more about impact cost here:
Btw, you can use limit orders just like market order, by placing buy order above the CMP and sell order below the CMP. This will also act as market protection as limit order only executes at price specified or better price (price specified or lower for buy orders and higher for sell orders).