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Simulated Bracket Order

Simulated Bracket Orders (SIM-BO) templates submits a stop and/or target order once the entry order gets filled. SIM-BO templates are special in the sense the stop/target orders are held locally till the desired price level is hit. The SIM-BO templates are available for those connections which natively does not supports OCO or CO orders. The salient features are:

  • Entry orders can be paired with a stop and/or target order. Stop/target order(s) are submitted only when the entry order is completely filled.
  • Stop and target orders are held locally (in users PC). Until the stop/target is transmitted (to the exchange) the TimeInForce will be marked as SIM.
  • User will be able to modify or cancel the stop and target orders. Any such modification or cancellation are simulated locally.
  • The stop or target order will be transmitted only when the desired stop or target price is reached. The TimeInForce of the transmitted stop or target order will be that of the entry order.
  • The other order will be canceled before the stop/target is transmitted (to the exchange). The "other" order means the target order in case the stop is hit and vise-versa.
  • OCO simulation is managed locally.
  • SIM-BO templates are available for both Cash and Margin orders.

Advantages

  • The stop/target order is not sent to the exchange until the desired stop or target price is hit. This provides an anonymity as the orders are held locally and are not visible in the 'Order Book' of the exchange.
  • Since the stop/target orders are placed only when the entry order is completely filled, there is no chance of "slicing" of the stop/target orders.
  • Margin is not locked as the orders are held locally.
  • SIM-BO templates are available for all instruments. For example if BO/CO orders for instrument X is disallowed by your broker, then you can place a SIM-BO order with ProductType==Cash.
How to define a Simulated Bracket Order template

Please follow the below steps to define a new SIM-BO Order.

  • Click on the Add button of the Order Template
  • In the Order Template View select 'Simulated Bracket Order' from the drop down items
  • Append a suitable name in the Name textBox
  • Select the Calculation Mode
  • Set the Target and Stop price. If you do not wish to submit a stop (or target) then append the same as "0" (zero)
  • Click on the Ok button
SIMBO
Disclaimers

Please understand the below scenarios before placing an order using the SIM-BO template. The below list is not comprehensive and there may be other scenarios too.

  • Since the stop and target is held locally user cannot shut down the PC or disconnect from the connection.
  • OCO simulation is managed locally. As such user must run his/her PC till the stop/target is hit.
  • The stop/target order, since held locally, will NOT get rejected (due to say, insufficient margin or if the stop or target price is beyond the days price range etc) when they are initially submitted. They will get rejected when the orders are sent to the exchange when the desired price is achived.
  • If the entry order is a limit or stop order then the reference price to calculate the stop and target orders will be the limit price (in case the entry order is a limit order) or stop price (in case the entry order is a stop order). For market orders the reference price will be the average traded price.
  • The OCO simulation works only when the stop or target gets a fill (or part-filled). If you cancel any pending order then the other order will be not canceled. For example if have a standing stop and target order and you cancel the target order, the stop order will still persist.
  • Chances of over-fill (both stop and target getting filled) cannot be completely ruled out if the stop and target price is too tight or in a volatile market condition or both.
  • The "other" order is cancelled before the stop or target order is transmitted to the exchange. In case the transmitted order is not filled or is part-filled then the position will remain naked.
  • Use the SIM-BO template entiely at your risk. ArthaChitra is not liable for any damages, including any financial, general, special, incidental or consequential damages arising out of the use or inability to use this product.