Order Slicing- HDFC Securities
Order Slicing is an additional feature on the web trading platform that gives an edge to the Active Traders to divide the Large Quantity Order into multiple orders which is known as Child Orders. Order Slicing is important because if its not done than One single large quantity order can have direct implication on market liquidity and price discovery in very next moment. If traders execute a large order into a multiple order in the same stock, in the same direction, and on the same day. The one of the reasons is to minimize and have control on Cost of Carry for holding a position. Consistent with this, we find that traders who engage in order Slicing more often are more active and are larger-size traders.
Functionality: –
Order Slicing functionality is newly introduced features which have been introduced in HSL Pro-Terminal Web Trading Platform and operates in following conditions: –
• Segment – Cash
• Exchange – NSE & BSE
• Validity – Day for NSE | SES for BSE
• Product – CASH Only
• Order Type – LIMIT Only
• AMO is not supported
• Transaction Type – BUY & SELL
• No. of Slice – (Min 2) | (Max 25)
Type of Order Slicing: –
Here, it’s a Manual Order Slicing mechanism which is being performed upfront dividing into small – small orders based on the input enter by the users on the order form.
• Type – Manual Slicing
• Order Placement – Immediate
• All Orders will be Treated independently
• All Sliced Orders will be placed One – By – One in Loop – One after another (FIFO)
Steps for Order Slicing: –
1. User has to enter a large order quantity in qty. field on the order form.
2. User has to enter a Limit Price in price field on the order form and that too between the day price range.
3. For Order Slicing – a tick has to be checked.
4. The moment tick is done, below panel (Advance Options) on the order form gets expanded for user to define rest of the required inputs.
Leesom 