Hello All,
On 28-Sept-2017, I placed a Cover Order-Short Order(Intraday) on Siemens Ltd. Following are the details
Date: 28-Sept-2017
Type: NSE-Intraday-Short Order-Cover Order
Scrip Name: Siemens Ltd
Sell Price: Rs 1202.00
Stop Loss: Rs 1208.00
Sell Order Successful Time: 12:48:38
But at 14:59:04, the Order got automatically squared-off and was executed at Rs1209.00 due to some issue at the broker end
How can the Order get squared-off automatically without Siemens stock hitting the Stop-Loss at Rs 1208.00?
I had placed Stop Loss at 1208.00. But at no point between 12:48 PM and 3.15PM, the market hit the price of 1208.00. Instead the high between this period is Rs 1207.50. Then how was the trade squared-off? On what basis the order was square off at 1209.00?
At no point between 12:48 PM and 3.15PM, the market reached Rs 1209.00. Then how my order was automatically executed? If any trade is executed at any price, then that price must be shown in chart however small the trade quantity may be.
Kindly go through the attached charts for your reference.
This is where you got it wrong. All brokers subscribe to Level 2 market depth data from NSE where they receive anywhere between 1 to 5 ticks per second from the exchange. If there are say 20 ticks that happen in a second at the exchange, especially when there is a spike movement, this results in ticks that the broker will not receive. And the broker can only show the ticks he received on his chart. This is why you do not see the price on the chart even though the trade was executed because the broker didn’t receive this tick.
Alternatively, one can also subscribe to tick by tick data from the Exchange through data vendors wherein every tick that passes through the exchange is provided but this is expensive and most often unnecessary. It also requires a server co-location at the exchange to avoid any latency/connectivity drop.
Lastly, your trades are executed at the exchange. The broker does not execute your trades, he only collects your orders and passes them to the exchange. If your trade has been executed, then this is the ultimate indication that the tick has passed through the exchange.
All trades can be verified at NSE. This is the trade verification link.
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Hi,
My understanding about Stop Loss is-> when I place an Order along with a Stop Loss order, the Stop Loss Order will be placed only when the Price (at which the SL is placed) is triggered. Which means the share price has to reach the Price then the Stock Broker will place the Order on the exchange and then the Order will be executed
For Example from above case
Short Sell Price: Rs 1202.00
Stop Loss: Rs 1208.00
My Order for SL will be placed when the share price reaches Rs 1208 and then the Order is placed and gets executed at Market Price(prevaling at that point)
Correct me if I am wrong
PS: The sad part is, broker’s trading terminal stopped working at that particular instant and I was unable to montor/modify the SL. Hence there is no security for the traders
Yes if you’re using SL-M, once price hits 1208 the stoploss order will execute at market price.
BTW, which broker are you using?
Stoploss orders are directly placed at the exchange. But your understanding is correct, the stoploss is activated only when it is triggered.
On NSEIndia:
Any stop loss order will sit in exchange stoploss order book so your understanding of broker placing the order once the price is triggered for SL order is not right.
Check this link under orderbooks for more info.
Also NSE will give unique exchange order number for all orders including for pending SL orders and that is more than enough to conclude pending sl order will be sitting in exchange stop loss book but not at brokers end.
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When you sold it the price was at 1202
Now your SL was at 1208
Your trade squared off at 1209
Clearly while reaching from 1202 to 1209, price must cross 1208 in between
So it is clear that your SL was hit.
Then why you get extra 1 rs loss?
It is because you put in SL-M order and you get market price
Opps ignore my question, came to know who is the broker from ur trading terminal screenshot.
Well, it says Upstox broker, so whenever you sell, the stock is bound to go up right?
#PJ
