The Economic Times daily newspaper is available online now.

    BSE to launch multi-legged order entry in derivatives from August

    Synopsis

    The trader will purchase or sell a variety of different futures and options at the same time, which otherwise would need separate orders.

    PTI
    NEW DELHI: BSE today said it will introduce multi-legged order entry facility in its equity derivatives segment from next month, a move that would allow a trader to place a combination of orders across different F&O contracts.

    Under the new facility, the trader will purchase or sell a variety of different futures and options at the same time, which otherwise would need separate orders for different contracts.

    The move will help the trader incorporate more advanced derivatives trading strategies. Besides, the trader would need to pay sales commission only once, as against the current practice of multiple fee payments.

    "It has been decided to make the functionality live in equity derivatives segment with effect from Monday, August 3, 2015," BSE said in a circular.

    The exchange, in May, had said that facility would be launched on July 20.

    With this facility, a trader can place orders across two, three or four contracts through a single combination order.

    A maximum of four legs can be entered in a multi-leg order and execution of all legs would be linked with each other.

    "Each leg of the multi-legged orders shall be executed in the ratio of its order quantity, either fully or partially," BSE said.

    Explaining by way of example, it said if the order comprises of a buy order for 400 in one leg and a sell order quantity of 300 in the second leg, then the trades would be executed in the ratio of 4:3, or else the order will be cancelled.



    Read More News on

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    Read More News on

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in