Comment on Stop Loss orders - Limit/Market

Sukesh commented on 23 Dec 2014, 11:05 AM

Hi Nithin,

Earlier i was trading in Nifty F&O however i realized that BankNifty is much better for my strategy and started trading in BankNifty now.

Few issues i face with BankNifty is that it is not as liquid as Nifty. There is a huge difference between the 1st and the 5th best buy/sell prices.

I plan to trade in huge number of lots, here my concern is that i am not able to see the best buy/sell prices for 6th & above best buy/sell due to which i am scared to place a market order on huge number of lots however my strategy requires that i place a market order itself (as i have to enter and exit all hedging positions at the same time).

Usually would there be a huge difference in price between the 5th & 6th best bid/offer prices? (Specially for BankNifty).

Is there any suggestion/work around you would like to suggest for my problem?

Thanks
Sukesh

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