Are you frustrated with market orders eating into your trading profits? Or tired of watching limit orders sit unfilled while opportunities slip away?
At FYERS, we understand the dilemma: choosing between costly slippage or missed trades. That's why we're excited to introduce Smart Limit Orders –an innovative breakthrough that combines the best of both worlds.
Here's how smart limit orders can simplify your trading:
Our Smart Limit Order with advanced Market Price Protection (MPP) is designed to overcome challenges faced by you as a trader by providing more control over order execution. Here’s how it helps:
Custom Expiry Times and Actions: Set custom expiry times and specify actions when the expiry time is reached.
Market Price Protection (MPP): Ensures that if a limit order converts to a market order, it will only execute within a specified price range, protecting you from undesirable execution prices.
Set Max/Min Price with Convert to Market: You can now specify a price range for execution when using the ‘convert to market’ option, ensuring your order only executes within your chosen limits.
Available actions as we approach "expiry time" of the Smart Limit Order:
Convert to Market: Converts the limit order to a market order at the specified expiry time, ensuring execution at the best available price.
Cancel the Order: Cancels the limit order at the specified expiry time if it has not been executed.
Using Smart Limit Orders in a variety of scenarios:
Scenario 1: Using Smart Limit Order for Buying Opportunity
Priya, a software engineer, has a crucial client call from 2 PM to 3 PM. She's interested in buying shares of TCS, currently trading at ₹4393, but she believes the price could drop to ₹4320 during the day. She doesn't want to miss out on the opportunity entirely, so she sets up a Smart Limit Buy Order.
Order Setup:
Buy Limit : ₹4320
End Time: 14:55 Hrs
Action at Expiry: Convert to Market
Quantity: 100 shares
This order will:
If the TCS price doesn't drop to ₹4320 by 14:55 Hrs, convert to a market order.
If it does, buy 100 shares at ₹4320.
If not, convert to a market order at 14:55 Hrs, ensuring Priya buys the shares at the market price.
This strategy allows Priya to focus on her important call without worrying about missing out on the stock purchase. It's a win-win situation: she either gets the shares at her desired price or secures them at the market price before her workday ends.
Scenario 2: Using Smart Limit Order as a Stop Loss
Ravi, a part-time trader, holds 100 shares of LT, which he bought at ₹3,680 per share. He's going on a family vacation but wants to protect his positions. Here's how he sets up a Smart Limit Order as a Stop Loss:
Trigger Sell Price: ₹3,655
Limit Price: ₹3,650
Order Type: Stop Limit
End Time: 14:50 Hrs
Action at End Time: Convert to Market
Quantity: 100 shares (his entire holding)
This order will:
Trigger if the stock falls to ₹3,655: The stop limit order is activated.
Attempt to sell at ₹3,650: Once triggered, the order will try to sell at ₹3,650 or higher.
Automatically convert to a market order at 14:50 Hrs if not executed: This ensures Ravi exits his position by the end of the trading day, limiting potential losses while he's away.
This strategy allows Ravi to enjoy his vacation without constantly monitoring the market. It provides a safety net for his investment, giving him peace of mind that his potential losses are limited, even if he can't actively trade while he's away.
Scenario 3: Using Market Price Protection (MPP) with Smart Limit Order
Neha, a young professional, has been following the electric vehicle market. She's interested in buying shares of Tata Motors, which has been making strides in this sector. Here's how she sets up her order:
1. Quantity: 50 shares
2. Limit Price: ₹975
3. MPP: 1.5%
4. Action at End Time: Convert to Market
5. End Time: 13:30 Hrs
Neha's order will:
If the LTP of the stock is ₹1100, it will be executed close to that particular price.
The maximum execution price will not go beyond MPP of 1.5% that is ₹1007.90 (993 + 1.5%) ensuring undesirable price executions.
This approach gives Neha a balance between flexibility and control in her investment strategy.
Scenario 4: Smart Limit Order with End Action - Cancel the order
Rohan is interested in purchasing 100 shares of Reliance, which are currently trading at ₹3052.35. He wants to buy these shares only if the price drops to ₹3010. To achieve this, he has set up a Smart Limit Order with the following details:
Buy Limit Price: ₹3010
Quantity: 100 shares
End Time: 14:55 Hrs
Action at End Time: Cancel the order
If the share price does not reach ₹3010 by 14:55 Hrs, the order will automatically cancel at 14:55 Hrs.
Scenario 5: Nidhi wants to buy Power Grid stock, currently priced at ₹354.65. However, she prefers to purchase it at ₹350. To protect herself from sudden market fluctuations, she decides to use the Smart Limit Advanced feature, which allows her to set a maximum price for buying the stock. She sets ₹365 as the maximum price.
Buy Limit: ₹350
End Time: 14:15 Hrs
Max Price Set: ₹365
Now, three scenarios can happen:
If the price reaches ₹350 by 14:15 Hrs, the stock will be bought at ₹350.
If the price is between ₹350 and ₹365 by 14:15 Hrs, the stock will be bought at that price.
If the price goes above ₹365, the stock won’t be purchased, as Nidhi set ₹365 as the maximum price and will be cancelled.
This feature helps Nidhi avoid sudden market fluctuations.
Benefits of Smart Limit Orders
Reducing Slippage: Focus on executing orders at your desired prices with multiple checks and balances in place, helping you reduce slippage.
Overcoming Non-Execution Anxiety: Ensures your order is more likely to be executed within the desired parameters, giving you the confidence to trade without hesitation.
Max/Min Execution Control: Gain more control over how and at what price your market order executes.
How to Use the Smart Limit Order ?
You can place a Smart Limit Order on our App or the Web easily. Here are the steps to help you place such an order on the FYERS App:
Access the order window on the FYERS mobile app.
From the list of order types, choose 'Smart Limit Order'.
Fill out the necessary custom parameters:
Quantity: Enter the quantity you wish to trade.
End Time: Specify the expiry time for the order.
Price: Set your desired limit price.
Action at End Time: Choose the action to be taken at the end time (e.g., convert to market order).
MPP: Set the Market Price Protection limits to safeguard your order from executing beyond a certain price range. The default setting will automatically calculate the optimal MPP values for you.
Tap the 'Start' button on the mobile app to initiate the order.
Swipe to see the options to see applicable actions.
You can use these steps to place a Smart Limit Order on the FYERS Web as well.
With the introduction of FYERS Smart Limit Orders, we are one step closer to our ultimate goal - getting trading simplified for you!
Download our app to explore more about our features and benefits!