FAQ #5

How does Tranching work ?

Tradetron allows you to split your multiple lots and multi leg order into various tranches so that you can get the best price with the least slippage. 

To do that the total order you can setup this in the Tranching dropdown which by default is at 100% meaning the total quantity is pushed at one go. 

If you wish to send it in 2 tranches, set this to 50% ; 10% for 10 tranches, 1% for 100 tranches. 

If there is only 1 leg and the quantity is more than enough for each tranch, it will be equally divided .. the remainder of the lots is handled in the last tranch. 

So lets say there are 21 lots and 10 tranches, the engine will post 2 lots in each tranch and the balance 1 lot is handled in the 11th tranch. If the number of lots are lesser than the tranches then it will get completed with the least no of lots per tranch possible. 

So if there are 3 lots and 10 tranches it will get executed in 3 tranches of 1 lot each. If there are multiple legs with differing quantities then the one with the least quantity will get finished before the last tranch is fully executed. 

So lets say for leg 1 the quantity is 21 lots and for leg 2 is 5 lots so from tranch 1 to 5 the order will be for 2 lots of leg 1 and 1 lot of leg 2 ; from tranch 5 to 10 the order will be 2 lots of leg 1 and the 11th tranch will be 1 lot of leg 1