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New trading products. Designing products for tomorrow. CO. Presenting. “CO” (Cover Order). What is CO ?. Cover Order is a special order type for day trading where as the name resembles every trading buy or sell order is placed hand in hand with a stop loss order.

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Presentation Transcript
new trading products
New trading products

Designing products for tomorrow...

slide3
CO

Presenting

co cover order
“CO” (Cover Order)

What is CO ?

Cover Order is a special order type for day trading where as the name resembles every trading buy or sell order is placed hand in hand with a stop loss order.

Outstanding trades are subject to square off, No conversion no carry forward allowed.

slide5
CO

CO Legs

Each cover order has got two legs,

1st Leg is for a BUY or Sell Decision.

2nd Leg is a auto for Stop loss for Leg1.

slide6
CO

Can be a Buy or Sell as per Clients Bullish or Bearish View.

Decide for a stop loss price, for the main Buy or Sell Leg1.

Leg 1 & Leg 2 are linked with each other, can not exist alone.

slide7
CO

CO Legs Characteristics

Leg 1

[1] Trades at market.

[2] Can not be placed like a limit order.

[3] Linked with Leg 2, If for any reason Leg 1 gets rejected Leg 2 will not be placed.

slide8
CO

CO Legs Characteristics

Leg 2

[1] Placed as SL-M (stop loss at market rate).

[2] Requires a trigger price for maximum loss for Leg 1.

[3] Linked with Leg 1, If for any reason Leg 1 gets rejected Leg 2 will not be placed.

[4] Based on trigger price for Leg 2, Margin required will be calculated.

slide9

Placing a CO.

CO

Right click on the Contract and click Cover Order.

Other options are “Shift + F1” for Buy &

“Shift + F2” for Sell

slide10

Placing a CO.

CO

Can be invoked from “Orders and trades Menu”

slide11

If Nifty is trading at 5400 and you want to take a stop loss of 25 Points i.e. 50*25=Rs.1250, then fill the Trigger price as 5375

Placing a CO – Bull View.

CO

Buy Cover Order form.

Select client

Trigger price range

Choose trigger price from range specified.

Finally click submit

slide12

If Nifty is trading at 5400 and you want to take a stop loss of 25 Points i.e. 50*25=Rs.1250, then fill the Trigger price as 5425

Placing a CO – Bear View.

CO

Sell Cover Order form.

Select client

Trigger price range

Choose trigger price from range specified.

Finally click submit

slide13

Some facts on CO.

CO

1] All Orders Placed by the user for the product “CO” (cover order) shall be a market order.

2] System would auto place an SL order at price specified while entering order.

3] Trigger price entered by the user for stop loss should be within this % from last rate defined in field Perc max.

4] Selective Contracts are allowed under this facility (Check with RMS equity for current available contracts). (Currently NIFTY, MINIFTY, BANKNIFTY, USDINR).

5] Trades under this facility can not be modified to any other trading product like NRML or MIS.

slide14

Some facts on CO.

CO

6] Orders once placed under CO can\'t be cancelled and one need to book the profit or Loss to exit the position by selecting the Stop Loss Trigger Order and clickingexit button. (This will send CO SL Trigger order at market rate to exit position.) One can modify the Stop Losses as per his perception for risks within range subject to fund availability in his/her account).

7] A minimum %age which system should block is currently (0.5% of contract value + Cushion 0.075 % of contract value) stands currently around 1700/- per order as minimum required.

8] For CDS %age which system should block is currently (0.5% of contract value + Cushion 0.023 % of contract value) stands currently around 300/- per order as minimum required.

9] Profit or Loss for the day under CO product will be adjusted with limit Excluding Cushion Amount for days trading.

slide15

Some facts on CO.

CO

10] The Amount blocked for an CO order will depend as higher of Minimum percentage defined or Value derived using difference between Stop loss price and Market price adjusted with Cushion (See Cases 1 to 5 in later slides).

11] Please note Once order is placed the second Leg of CO can not be cancelled, The lone option is EXIT button in Order Book to square at market rate (Stop Loss range can be modified within range subject to availability of fund) But in no circumstances positions under CO Product can be carried forward for next trading day irrespective of Clients margin.

slide16
CO

What is the difference between CO and Other trading products ?

You will wonder what is the difference when you can place the two orders separately in other products like NRML or MIS?

Here is the deal.

You can trade NIFTY from margin money as low as 1700/-

Ever wondered trading NIFTY with that amount, To place a CO you require higher of stop loss range value to market price or 1700/-.

slide17

Understand how CO works.

CO

CO works on Higher of

[.] Covered price range value.

or

[.] 0.5% of the contract value

Plus ( + ) : 0.075% of contract value as price cushion amount for NIFTY, BANKNIFTY and MINIFTY.

Covered price range is the difference between stop loss price to market price multiplied by lot size.

- A 25 Points stop loss order in nifty makes a SL range value equal to 50*25=Rs.1250/-

+

slide18

Understand how CO works.

CO

Calculation for a buy cover order.

slide19

Understand how CO works.

CO

Calculation for a Sell cover order.

slide20

Understand how CO works.

CO

So we see that as we increase the stop loss range from 10 to 20 to 30 and so on the amount required increases.

The CO SL trigger price can be modified anytime after placement during the day, subject to availability of fund.

The Stop loss trigger pending order can not be cancelled.

slide21

Understand how CO works.

CO

Calculation for a Buy cover order USDINR.

slide22

Understand how CO works.

CO

Calculation for a Sell cover order USDINR.

slide23

Key prospects CO holds for you.

CO

Trade NIFTY and BANKNIFTY starting as low as 1700/-

Trade MINIFTY starting as low as 600/-

Trade USDINR starting as low as 300/-

Ideal for risk averse investor, who want to take benefit of sentiment and technical analysis from the small moves of contracts.

Holds the power to generate returns which were otherwise not possible using traditional trading products.

Ideal for even the investors who have small capital or want to start with small capital.

slide24

Key prospects CO holds for you.

CO

Gear up and train your colleague\'s and client’s to reap benefit using CO.

CO offers almost 10 times leverage to traditional trading products, That means you have got a power out of which your returns potential has become more than 10 times.

Not a master of market trends still want to take a bet– don’t worry divide your capital in 4 to 5 equal halves and choose trading product accordingly like NIFTY at 1700/- or MINIFTY at 600/-, and let the Game of Probability has its course starting from first divided capital if goes wrong u are left with 5 other equal attempts to regenerate the lost and make new equally strong attempts.

Try this and you will have a retail base making handsome turnover for your business location.

Many locations have already started doing the big, join the rally.

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