Option Plus

Can my Fresh/Cover SLTP order get part canceled by National Stock Exchange of India Ltd (NSE)?

Yes. Your Fresh/Cover SLTP order can get part canceled by National Stock Exchange of India Ltd (NSE) if part of the ordered quantity tries to match part opposite order whose price is not within the Trade Price execution Range. Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. At the time of Execution of cover order, there are two opposite orders finding match of 500 quantity each at Rs 91/- and 93/-, respectively. The Trade price Execution Range at that point is Rs 92-98. Such order will be partly canceled (Quantity 500 at Rs 91/-) and partly executed (Quantity 500 at Rs 93/-) by Exchange and you will be exposed to higher risk since there will be no order to cover your part open position. In such case I-Sec on best effort basis would try squaring off your net part open buy position (Quantity 500) at current market price. Assume you try taking a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. At the time of Execution of fresh order, there are two opposite orders finding match of 500 quantity each at Rs 97/- and 99/-. The Trade price Execution Range at that point is Rs 88-98. Such order will be partly canceled (Quantity 500 at Rs 99/-) and partly executed (Quantity 500 at Rs 97/-) by Exchange and you will be exposed to higher risk since reverse position will be created if cover SLTP order gets matched and traded within the Trade price Execution Range (88-98). In such case I-Sec on best effort basis would try canceling your part cover SLTP order or if cover SLTP order gets traded then try squaring off your net part open Sell position (Quantity 500) at current market price.