Smart plus is an order placement system wherein a client can execute an order (either buy/sell) and can place two counter orders without booking additional margin-one in profit and the other a stop loss order to minimize the loss.
Features?
Less Margins- margins are user defined and depends on the price difference between executed price and stop loss price.
Privacy on pending orders Both orders including stop loss will not appear in exchange terminals.
No user intervention required if one is executed; counter orders are cancelled automatically.
Auto Square off All open positions will be squared off automatically, hence no need to worry about closing open positions.
How It Works?
Smart Plus basically is a three leg order where the First order (buy/sell) will be executed at market price; the counter Second and Third leg orders will be a normal profit order and a loss minimizing stop loss order respectively.
Order placement Customer/Dealer has the provision to place 2 legs of orders.
Buy or Sell market order in the first leg.
Profit order and a stop loss orders in the second leg.
Upon receiving the order, the system will forward the first leg order to the exchange after booking the required margin using the "Last Traded Price". The second leg of orders are maintained and monitored in the server and not at exchange.
The following parameters are accepted: -
First leg order will be market order.
The second leg of orders will be opposite of the first leg. Two orders are accepted; one for maximizing the Profit (Profit order) and the other for minimizing the Loss (stop loss order).
Margin Requirement
On New Order
Margin Requirement for the Order = (Last Traded Price – Stop Loss Order Price) + (50 % of Last Traded Price – Stop Loss Order Price))* Qty.
On First Leg Order Execution
Margin Requirement For the Order =((Executed Price – Stop Loss Order Price)+ (50% of Executed Price – Stop Loss Order Price))* Qty.
(% is configurable based on market conditions).
Other points
If any one of the second leg of orders are triggered, the other order in the leg is cancelled by the system.
The counter order accepts price parameter and can be specified in two modes. Price difference in value or the difference in % of the executed price.
Eg: - If a buy order is executed for Rs. 100, the customer can instruct the system to trigger the counter orders in any of the following way using the second leg of order. Place a profit order in the price difference of Rs 10. ie , 110 or in 0.1 %.
Profit order & stop loss order Orders should be placed at difference of .5% ( price difference is configurable based on market conditions).
This product should be made available only those who have accepted the T&C for this product.
Product conversion is not allowed for this product.
This product shall be available only for selected securities/contracts.
Square off
Square-off orders are initiated either by the customer or automated by the system at 3.10 PM.
Customer Initiated - Square-off On initiating the square-off request by the customer, the system will trigger one of the counter orders to the exchange
System Triggered - Square-off The system will trigger one of the counter orders and cancels the other in one of the scenario:-
If the market price touches the price condition as specified in one of the counter orders.
If the orders are open in the auto-square off window. The system will trigger one off the counter order as per the square-off process.
