Why did this happen in ICICIDirect?

[bvpraveen]

One can place orders before start of the trading session but then he has to specify the limit. No order without a limit can be placed before/after market hours.

Further, a buy order is triggered if and only if the price is lower than or is equal to the limit price while a sell is triggered if the price is higher than or is equal to the limit price.

Best Regards,
--Ashish

Hi Ashish,

I promise that this is the last one - "Then how does the stock open with a gap"?

My view: If it performed well in the last trading day, then many might have put limit buy orders. The traders at the floor will eventually rise that stock price depending upon the demand.

Am I right?

Thanks a lot,
Praveen.

 

[aca_trader]

Hi Ashish,

I promise that this is the last one - "Then how does the stock open with a gap"?

My view: If it performed well in the last trading day, then many might have put limit buy orders. The traders at the floor will eventually rise that stock price depending upon the demand.

Am I right?

Thanks a lot,
Praveen.

What you are saying is exactly what Elder says.

In such a scenario, the only probability is that the open trade is a market order placed at the strike of gong and not limit order.

Regards,
-Ashish

P.S.: I don't think anybody is minding the number of questions.

 

[bvpraveen]

Thanks everybody for your contribution.

Praveen.

 

[Agilent]

Hi,

Thinking of getting into my first trade,
I tried to buy one Infosys share through ICICIDirect.
Here are the details:

buy order type - limit
stop loss trigger price - 1813.25
limit price - 1813.50
quantity - 1

Actually the last traded price was somewhere near 1813.10 or so.


Praveen.

Where did u get that figure from ? on NSE the close was 1831.3 , and on BSE it was 1829.

In a later post u said yr interpretation of limit buy order was that the limit should be the minimum you are willing to buy at .

That is intriguing... limit should be max u are willing to pay , and not min

AGILENT

 

[bvpraveen]

Where did u get that figure from ? on NSE the close was 1831.3 , and on BSE it was 1829.

In a later post u said yr interpretation of limit buy order was that the limit should be the minimum you are willing to buy at .

That is intriguing... limit should be max u are willing to pay , and not min

AGILENT

Here is the full detail:

1. Went to buy one share of Infosys, today morning at 9am.
2. Tried market order(i know it can't be made).
3. Then limit order : Here when i cliked the "Get quote" link(in ICICIDirect), it showed "Last traded price = Rs.1813.15(some where very close to this fig.)"
4. As I wanted to buy the share "immediately"(that is where I'm wrong...I thought I can but at Rs.1813.16"), I put a limit order at Rs.1813.50
5. Since we need to put stop loss trigger price, I assigned it Rs.1813.25.

Praveen.

 

[murthymsr]

..............
3. Then limit order : Here when i cliked the "Get quote" link(in ICICIDirect), it showed "Last traded price = Rs.1813.15(some where very close to this fig.)"

the last traded price of 1813.15 indicated at ICICIdirect 'get quote' must be the last traded price YESTERDAY, as you were placing the order at 9AM in the morning. as far as today's market is concerned, it is only informative and cannot be 'traded at'.

5. Since we need to put stop loss trigger price, I assigned it Rs.1813.25.

assigning stop loss trigger price is optional. keeping such a narrow stop loss is almost certain to trigger & you will only be benefitting the broker.

MurthyMSR

 

[bvpraveen]

.......

assigning stop loss trigger price is optional. keeping such a narrow stop loss is almost certain to trigger & you will only be benefitting the broker.

MurthyMSR

Hi Murthy,

All got cleared now.

The reason for giving such a narrow SLTP is for triggering the order immediately.

Praveen.

 

[Agilent]

Hi Pranay,

But limit order means that the order should get executed when the price is "atleast" the specifid limit price, right? Hence in my case, since Rs.1815 > Rs.1813.50, it should have got executed.

Just my view.

Praveen.

When u are a buyer, u will set the 'limit' as your ceiling ( ie max u are willing to pay)

when u are a seller, u will set yr limit as the floor (the min u want to get)

How did u get confused in these basics ?

AGILENT

 

[bvpraveen]

When u are a buyer, u will set the 'limit' as your ceiling ( ie max u are willing to pay)

when u are a seller, u will set yr limit as the floor (the min u want to get)

How did u get confused in these basics ?

AGILENT

Agilent,

I know them very well. Ofcourse they are very basic and I'm aware of that.
As I told before, my confusion had been with the last traded price(which ICICIDirect had showed), my timing of placing order, etc.

Now all are clear. I hope you are not angry with me.

Praveen.