Hi Virgo,
On the second query -- yes we allow bracket orders on the platform.
On the first query -- we are pushing for market orders on the option sell side fairly soon... While ideally we do want to leave such decisions to the trader, a simple mistake has turned out to be costly for us and the trader many times.
We had an instance where a trader was looking to buy a scrip priced at Rs. 20 - 30 for a quantity of 1,000 so he expected to spend Rs. 20k - 30k. However, on that illiquid stock, the full quantity wasn't available at 20 - 30 rupees and it soon went to almost 100 rupees. Since NEST RMS can't calculate the real time liquidity of every scrip, it allowed the order to go through. Immediately the client went in debit and we had to square off his position at a loss. Both us and the client had to share a loss of over 70K on a simple trade.
This is always the risk of buying options @ market price. Ideally if NEST could monitor option instruments and categorize them by "liquid" and "illiquid" realtime, it would be the best solution.
We are looking at other ways to address this problem. Maybe have some sort of market protection order when buying options.
On the second query -- yes we allow bracket orders on the platform.
On the first query -- we are pushing for market orders on the option sell side fairly soon... While ideally we do want to leave such decisions to the trader, a simple mistake has turned out to be costly for us and the trader many times.
We had an instance where a trader was looking to buy a scrip priced at Rs. 20 - 30 for a quantity of 1,000 so he expected to spend Rs. 20k - 30k. However, on that illiquid stock, the full quantity wasn't available at 20 - 30 rupees and it soon went to almost 100 rupees. Since NEST RMS can't calculate the real time liquidity of every scrip, it allowed the order to go through. Immediately the client went in debit and we had to square off his position at a loss. Both us and the client had to share a loss of over 70K on a simple trade.
This is always the risk of buying options @ market price. Ideally if NEST could monitor option instruments and categorize them by "liquid" and "illiquid" realtime, it would be the best solution.
We are looking at other ways to address this problem. Maybe have some sort of market protection order when buying options.
