• HDFC securities
• 08 Dec 2021
• Order Slicing

The way in which you execute your trades can make a world of difference. It could not just mean the difference between success and failure but also the level of profit or loss. While most of us invest a huge amount of time in identifying the best trading strategies, entry and exit points and even selecting the brokerage firm, very few of us spend time on how the actual order execution is conducted.
Stock trading means that a delay of even a few minutes could turn a winning trade into a losing one. This is why we tend to be in a rush to get our orders executed. The result is that we jump in with a huge order in one go. In other words, if the share price is declining, we rush to buy a large quantity of the stock and vice versa. Did you know that a better way to execute such trades is through order slicing?

What is Order Slicing

Order slicing refers to the dividing up of a large order into several smaller ones, regardless of whether a stock is being bought or sold. By splitting orders in this manner, trades can become eligible for faster executions. There are times when market liquidity might be insufficient to fulfil a large order. This could lead to delays and the loss of the desired price. To avoid such a situation, order slicing can be a good option.

Another key benefit of order slicing is that it can bring down the cost of trading. The stockbroker would allow their clients to place multiple buys and sell orders for smaller quantities of shares, rather than pushing them to place a large order that the trader might not be able to comfortably afford.

With a view to the benefits of order slicing and a commitment to providing clients with the best trading conditions, HDFC Securities has introduced the Order Slicing facility on its trading platform. This is part of a larger #FaydeKeFeatures campaign being currently run by the company to empower traders with the most innovative features to ease trading.

How Does Order Slicing Work?

Also known as Child Orders, traders can place multiple orders on the same scrip, on the same day, and in the same direction via Order Slicing on the HDFC Securities HSL Pro-Terminal Web Trading Platform. A single large order could directly influence price discovery and market liquidity. However, with Order Slicing, investors can control or even minimise Cost of Carry.
All you need to do is fill in the basic information of the Manual Order Slicing option, such as the total order quantity, limit order, etc. The slicing is then done by the system and the multiple orders are placed on your behalf, one at a time, one after another.

This feature has been introduced to help active traders capitalize on stock price movements. It operates under the following conditions:

• Order slicing is available only for the cash segment.
• It is available for both NSE and BSE, as well as for both buy and sell orders.
• Only the Limit Order type is available for order slicing.
• Order placement after market hours is not supported in this option.
• Order can be sliced into a minimum 2 and a maximum 25 child orders.

To make things even more convenient for clients, HDFC Securities allows traders to modify and cancel their order, if the need arises, as long as the order is still in pending status in the order book. Most importantly, there are no additional margin requirements for orders that are initiated via the Order Slicing screen.
HDFC Securities is committed to regularly bringing new and innovative features to power traders with the latest technology.

 

*Disclaimer - The information is only for consumption by the client and such material should not be redistributed.