Why zerodha trades have lesser liquidity

[ShubhS9]

@atul_sethi

Sold 4900 call of coforge.

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?

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:

What is impact cost?

Hello, When large orders are executed without noticable movement in stock prices, one can say the stock market is liquid. Lets consider the snap quote of a stock at a point in time: [image] The snap quote here consists of 4 best buy and 4 best sell orders. Here the bid-ask spread(difference between best buy and best sell orders) is 0.50. Buyers can execute their orders at best seller prices and sellers can execute their orders at best buyer prices. Here, a buy market order for 100 sh…

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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).