LIMIT / SL-LIMIT ENTRY ORDERS
Positions can be entered with Limit and/or SL-Limit orders.
This option can be selected from under Advanced Settings on the algo configuration page under ‘Entry order type’.
In the case of normal entry orders without Wait & Trade, and in the case of Wait & Trade with Immediate settings, the buffer value is added or subtracted to or from the LTP to define the limit price for entry. In the case of a Buy entry order, buffer value is added to LTP and Limit order is placed (LTP + buffer value = limit price). In case of a Sell entry order, buffer value is subtracted from the LTP and limit order is placed (LTP - buffer value = limit price)
In what case will Limit orders be placed, and in what case SL-Limit orders be placed for entries?
- Buy entry order with ⬆️ W&T settings, SL-Limit order will be placed
- Buy entry order with ⬇️ W&T settings, Limit order will be placed
- Sell entry order with ⬆️ W&T settings, Limit order will be placed
- Sell entry order with ⬇️ W&T settings, SL-Limit order will be placed
In what cases is the buffer value used?
1. In the case of normal entry orders without Wait & Trade
2. In the case of W&T entries with ‘Immediate’ settings
3. For SL-Limit entries
Points to remember:
1. Make sure to use ‘Square off and terminate algo’ button if you choose to deactivate the algo where the positions have not entered already. If you use the ‘Terminate algo’ option, the entry orders placed in Limit or SL-Limit will not get cancelled, and will stay open.
2. For Wait & Trade Limit orders, buffer will not be used. The limit price will be entry price calculated from the reference price itself.
3. Once the algo goes into ‘Trade Active’ status, the entry order type settings ie. buffer value in, buffer value and ’N’ seconds setting cannot be modified.
4. In the case where the calculated entry price from the reference prices gives a negative value, an order will not be placed. Any previous pending Limit/Sl-Limit order will stay as it is. In such a case, the status of the order will show Pending in red color on the algo dashboard (refer to the sample screenshot shared in the mailer emailed to you). Incase you get this error, you should change to W&T settings where the limit price can be a positive number.
5. If you modify the W&T settings from a value to Immediate, the entry order will get modified from Limit/SL-Limit order to a Limit order where the limit price would be LTP+/- buffer value (as explained above).
6. It is not advisable to keep W&T settings with small values like 0, 1, 2 etc. If the LTP goes below or above the trigger price in the case of Sell and Buy respectively, then the order will get rejected, because in the case of Sell SL Limit order the trigger price has to be lower than LTP and in the case of Buy SL Limit order the trigger price has to be higher than the LTP (refer to the sample screenshot shared in the mailer emailed to you).
7. If 'Trade only first entry' is selected, and in the case where the price has moved too fast, it is possible that more than 1 leg gets executed because of very quick price movement before the 2nd leg order can get cancelled. If the order gets executed, then it will have to be squared off manually. Such a scenario can occur when CE has ⬆️ W&T setting and PE has ⬇️ W&T setting and the market has moved up very quickly, and vice versa