Why did my CO/BO order get executed at different price points?

Why did my CO/BO order get executed at different price points?

The BO/CO orders are multi-legged orders placed with stop-loss or/and target along with Leg 1 order (entry) of Buy or Sell. 


All order types are executed based on the Bid/Ask available in the market for the scrip, you wish to trade in. However, In BO/CO, target or/and stop-loss legs are placed as per the execution of the Leg 1 order (Entry). Therefore, as per execution, orders may split into multiple orders and may result in different entry prices, SL, and targets.


Let us take a few scenarios to back up the above theory.


Scenario 1: Mr. X, a client of FYERS, placed an intraday buy order of 4 lots in Bank Nifty 41400PE at the market (LTP: ₹100), the order got split and executed at 99, 102, 100, and 103, respectively. Even though Mr. X has placed a single order of 4 lots due to Bid/Ask disparity, the orders split in multiple trades. Since, this order does not have a SL/TP, the platform will display the buy average as ₹101 (404/4).


Scenario 2: However, let's use the above example, and this time Mr. X placed a Bracket Order at market with a stop loss of 4 points and a target of 4 points. Imagine what would the individual numbers look like?


Lot
Entry Price (Premiums)
Stop Loss
Target
1
99
95
103
2
102
98
106
3
100
96
104
4
103
99
107

As you can see, the entry price of Lot 1 is the stop-loss of Lot 4 whereas the target of Lot 1 is the entry price for Lot 4. Hence, different stop loss and targets appear on the platform, and you may find it harder to trail your SL/Targets.


What is the difference between scenario 1 and scenario 2 order execution?


Nothing! The orders are executed at the exchange based on the Bid/Ask available at the market irrespective of it being an Intraday/BO/CO/CNC/Margin. These product types are at the broker level, only to provide convenience to the trading community.


The only difference you might find is that there are 4 different stop-loss and target orders compared to no open orders in Intraday. 


But, What is the solution?


We strongly recommend selecting high-liquidity stocks or any derivative contracts you wish to trade in. High liquidity scrips will have a higher number of buyers and sellers, having the highest probability of order execution in one go. You can check the liquidity of each scrip using the market depth available on the FYERS Web and App 2.0.


The market depth of Bank Nifty 41400PE is displayed in the image below:

On FYERS Web:



On FYERS 2.0 App:


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