Comment on Deciphering NSE's 'Execution Range' circular.

Nithin Kamath commented on 10 May 2014, 09:12 PM

If you are placing a limit order, you would know the price, so wouldn’t affect unless you do a mistake while placing the limit order. For example assume a certain call option best offers are 1 lot at Rs 30 and 20 lots at Rs 60, if you by mistake place a limit order to buy 20 lots at Rs 60, you could have still lost quite a bit as 1 lot would get bought at 30 and the rest 19 at 60. But with the new execution range, 1 lot will get bought at 30, but the rest of the order will get cancelled as the price available is above the execution range. The execution range in this case would be 24 to 36 ( 20% above and below 30).

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