General Queries

Why isn't my order getting executed even though it has been placed successfully in Futures and Options?

Your order may not be executed even after being placed successfully due to certain market-related factors. The most common reasons are explained below.

1. Price–Time Priority System

As exchange follows a Price–Time Priority (FIFO) system for order matching. This ensures fairness and efficiency during pre-open and regular trading sessions.

How Price–Time Priority Works

Price Comes First:

• For buyers, the highest bid price gets priority.
• For sellers, the lowest ask price gets priority.

Time Breaks the Tie:

• If multiple orders are placed at the same price, the order that was placed earlier is executed first (First-In, First-Out).

Example Scenario  

Underlying Asset: Reliance Futures

Exchange: NSE

Matching Rule: Price–Time Priority (FIFO)

Buy Orders:

• Buy Order 1: 100 lots @ ₹2800 (Time: 9:40 AM)
• Buy Order 2: 50 lots @ ₹2800 (Time: 9:45 AM)
• Buy Order 3: 200 lots @ ₹2799 (Time: 9:42 AM)

Incoming Sell Order:

• 150 lots @ ₹2800

Matching Process:

• The system checks the best price, which is ₹2800.
• At ₹2800, Buy Order 1 and Buy Order 2 are eligible.
• Buy Order 1 gets priority because it was placed earlier.

Execution Outcome:

• 100 lots are matched with Buy Order 1 (fully filled).
• Remaining 50 lots are matched with Buy Order 2 (fully filled).
• Buy Order 3 remains unexecuted as it is at a lower price (₹2799).

Key Takeaway:

Orders are executed first based on the best price, and if prices are the same, based on the earliest time of placement.

Order Matching During Different Trading Sessions

Pre-Open Session for F&O (9:00 AM – 9:08 AM)

• Orders (buy, sell, modify, cancel) are collected.
• Matching happens using price–time priority to determine the opening price.

Regular Market Session (9:15 AM – 3:30 PM)

• Orders are matched continuously in real time.
• Best price gets priority, followed by earliest order at that price.

Ways to Avoid Non-Execution:

• After Market Orders (AMO):

  • Can be placed outside market hours.
  • Market orders usually have a higher chance of execution.

• Pre-Market Orders (9:00 AM onwards):

  • Placing orders in the pre-open session may offer a better execution chance than AMOs.
  • However, execution is not guaranteed.

Important: Even AMO or pre-market orders do not guarantee execution.

2. Low Liquidity

If an F&O contract has low trading volume, there may not be enough buyers or sellers available to match your order, leading to non-execution.

3. Limit Price Not Reached

• Limit orders execute only when the market price reaches or improves upon your specified price.
• If the market does not touch your limit price, the order will remain unexecuted.

4. Circuit Limits and Volatility Controls

• Unlike equity stock, F&O contracts do not have circuit limits. But  they may still face restrictions or special measures during periods of high volatility.

5. Insufficient Margin

• F&O trading requires sufficient margin in your account.
• If adequate funds are not available, the order may be rejected.

Example: Buying options requires payment of the option premium and any additional margin, especially before physical settlement.

6. Trade Restrictions or Surveillance

• Exchanges may place certain F&O contracts under trade restrictions or surveillance.
• This can limit or temporarily restrict trading in those contracts.