FAQ #6

How does Price Execution work ?

There are 5 fields you can use to setup the price execution logic 

1) Initiation price 

2) Revision attempts 

3) Increase by tick 

4) Timeout and 

5) Final Action 

Initiation price options are a) Avg of Bid and Ask b) Best Price 3) Market Price 4) LTP …. 

If Avg of Bid and Ask price is chosen, for each leg and each tranch the trading engine will fetch the ask and bid price in real time, calculate the avg of both and submit a limit order at that price ; Best price, for all buy orders the best bid price will be used as the limit price and for sell orders the best ask price will be used ; 

for Market price, Order will be placed with price 0 to get the order filled as market order ; 

for LTP, the LTP will be used as Limit price. 

0 price will not be submitted as the order price in final action ("execute at Market price") if initiation price is LTP, avg of bid-ask or best price due to the various inherent risks involved in such a strategy. 

Once the initial price has been submitted, now the engine will look at revising the price with the goal of getting the order filled. 

You can set this no of attempts in the 2nd setting. 

During each revision, the price should get closer to getting filled by how many ticks can be mentioned in the 3rd setting . 

Between each revision how much time should elapse for a timeout can be mentioned in the 4th setting and finally if after all revisions, the order is not filled what should be the final action - should the order be filled at market price or be cancelled can be setup in the 5th setting. If final action is selected as market, a limit order will be placed with a price 5% above initiation price in case of buy order and 5% below initiation price in case of sell order