 What are Cash Orders?
| Ans: Cash Orders are intended for settlement by delivery. Cash Buy orders are processed by IDBIDirect.in after ensuring that you have sufficient Buying Power to pay for all your obligations if the order is executed. IDBIDirect.in processes Cash Sell orders after checking that your delivery obligation can be met from stocks available in your Selling Power.
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 What are Margin Orders?
| Ans:Margin order basically means that you need to square off the position before the close of the market and do not intend to settle the transaction by delivery. In this case, only the margin amount is checked against your Buying Power Therefore, in Margin Orders you can place Buy orders of value greater than the amount of funds available with you, or place Sell orders without having the securities in your Selling Power. An initial margin amount is blocked from your Buying Power at the time of placing the order. |
What’s the difference between Margin and Cash orders?
| Ans:Margin implies the intra-day transaction which gives you five times exposure for the Buying Power on select scripts specified from time to time by IDBIDirect.in and the same are compulsorily settled (squared-off) on the same day. Intra Day or Margin orders are allowed on select scripts, the list of which is available for you to see on the trading site. Cash transaction trades are settled on T (Trading) +2 basis. To view the list of the scripts on which Margin Orders can be placed, click the Margin Stock List under the Help section of the Classic/Streaming platform |
Can I convert a Margin Order and Trades into delivery?
| Ans: To convert margin order to delivery order you need to cancel the margin order and place a delivery order. However, you can covert a Margin Trade into a Delivery Trade from “Today’s Trades” under Trading Site. |
How is a Cash Order processed?
Ans: Cash orders are intended to be settled by delivery, although you have the flexibility to square off within the same settlement.
Buy Order Processing:
Buy Order Processing: When you place cash Buy Order, we check your Buying Power at that time. If your Buying power is equal to or more than the Order value, the order is accepted and sent to the exchange for execution. If your Buying power is less than the Order value, the order is rejected.
Sell Order Processing:
When you place cash Sell Order, we check your selling power for that. If your selling power is equal to or more than the order quantity, the order is accepted and sent to the exchange for execution. If your selling power is less than the order quantity, the order is rejected.
Processing at the Exchange:
Once an order is validated for adequate buying power or selling power, it is sent to the stock exchange for execution until the order is executed, it would appear in your Pending Orders screen. At the stock exchange, orders are matched on price-time-priority & once a match is found, the order gets executed. One order may result in one or more trades.
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How is a margin order processed?
Ans: In case of margin orders, only a specified percentage of the order value is blocked out of your Buying Power. These orders are intended to be squared off before the cut off time of 3.00 pm.
Initial margin amount is blocked for both buy and sell orders. As soon as a margin order is placed, our system would check whether your Buying Power is more than or equal to the initial margin required. If yes, the order would be accepted and sent to the Stock Exchange. Until the order is executed, it would appear in your Pending Orders screen. At the Stock Exchange, orders are matched on price-time-priority and once a match is found, the order gets executed. This means that you have now created a buy position (if you had placed an order to buy shares) or a sell position (if you had placed an order to sell shares). Having created a position, you have two options:
- Square off the position during the day:
Squaring off a position means closing out a margin position. Once a position is squared off, you would book the profit or loss arising from the same, which would be credited or debited by the Stock Exchange on day T+2 (T being the trade date).
- Convert the Position to delivery:
If you do not wish to square off your Open Position completely, you would have to convert the position to delivery. A Margin Order once converted to delivery is treated exactly like a Cash Order.
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What is Square Off?
| Ans: A process whereby investors/traders buy or sell shares and later reverse their trade to complete a transaction is called squaring off of a trade. (E.g. an Open Buy Position can be squared off by placing a Sell Order). For instance, if you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position. |
What happens if I don’t square off my positions by 3.00 pm?
| Ans: The cut-off time for placing margin orders is 3:00 pm. If any margin positions are not squared off by 3.00 pm, IDBIDirect.in will automatically generate square off requests for such positions. |
What is additional margin call?
Ans: A margin position can be created subject to sufficient margins maintained with IDBIDirect.in. However, the value of your margin positions keeps changing continuously, depending on the fluctuations in the prices at the Stock Exchange. The margin positions are, therefore, continuously monitored to keep a track of the "Mark-to-Market (MTM) loss". If the MTM loss exceeds the threshold margin limit, a call for Additional Margin would be made, and the funds would be blocked to that extent. If enough funds are not available, securities are sold to release the margin.
OR
Additional Margin is the margin amount required to safeguard a position when it has been identified as short of margin. Additional margin is required when the Available margin against the position goes below the Minimum margin required to be maintained for the position |
What are Limit Orders?
| Ans: A limit order is an order to buy or sell a stock at a specific price or better. A limit order can only be executed if the stock market price for that particular scrip reaches the limit price. A limit order is not guaranteed to execute. |
What are Market Orders?
| Ans: A market order is an order which an investor makes to buy or sell a stock immediately at the
best available current price. A market order is most likely to get executed as it does not contain
restrictions on the buy/sell price or the timeframe in which the order can be executed. |
Should I place a Limit Order or a Market Order?
| Ans: The advantage of a Limit Order is that you can be sure of the price at which the trade will take place. But the disadvantage is that the trade may not take place at all if your limit price is not reached. All orders placed with IDBIDirect are Day Orders. So, if not executed, they expire at the end of the day.
You should enter a Limit Order, when you are ready to buy or sell only at your price. You can check regularly how the market price is moving and modify the Limit Price if required. You should enter a Market Order, when you want to be sure that your order will be executed at the best available price. |
What is a Stop-Loss Order?
| Ans:A stop-loss order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price. Investors generally use a buy stop order to limit a loss or to protect a profit on a stock that they have sold short. A sell stop order is entered at a stop price below the current market price. Investors generally use a sell stop order to limit a loss or to protect a profit on a stock that they own. It is designed to limit an investor's loss on a security position. |
When should I specify Disclosed Quantity?
| Ans: : If you want to disclose only a partial quantity to the market, specify the Disclosed Quantity in your order. This is an advanced option and is normally not used by small investors. It can be left blank. Disclosed Quantity allows you to disclose only a portion of the total order quantity to the market. For example, if the order quantity is 10,000 and the disclosed quantity is 2,000, then only 2,000 is disclosed to the market. After this quantity is fully matched and traded, a subsequent quantity of 2,000 is disclosed. Thus, totally five disclosures with the same order number are shown one after the other in the market. This option is useful if you are placing a large order and you do not want the market to know the full quantity |
What is an Immediate Or Cancel order (IOC)?
| Ans: A Market or Limit Price Order which is to be executed in whole or in part as soon as such order is placed in exchange, and the portion not executed is to be treated as cancelled. |
What is Order Status?
| Ans: As soon as you place an order online, it is sent to the Exchange for execution. However, the exchange matches orders on price-time priority and until a match is found for your order, it will remain 'Pending' at the exchange. It is also possible that only part of your ordered quantity gets executed at the exchange. The remaining quantity is called 'Pending Quantity' and such an order is called a 'Partially Traded Order'. Click on ‘Pending Orders’ to view such orders. If an order does not get fully executed till the end of a trading day, then the pending part of the order expires at the end of the day. 'Expired Orders’ are deleted at the end of the day. Once an order is fully traded, its status becomes 'Traded’. When an order has been rejected by our system (for example, orders rejected for insufficient funds or insufficient selling power or at the exchange) for any reason, its status is 'Rejected'.
When you have cancelled an order, and such a cancellation request is accepted by the Exchange, the status of that order is 'Cancelled'. |
What are Open Positions?
Ans: Open Position is the net number of shares of any company that you have bought or sold on any day. You can close an open position by squaring it off, i.e. selling a buy position or buying back a sell position.
Open Margin Positions are created on execution of Margin Orders. The open positions are reduced on execution of Cover Margin Orders or conversion of open positions to delivery. Open Cash Positions are created on execution of cash orders, or on conversion of Open Margin Positions to Delivery. The Open Quantity multiplied by the Average Buy or Sell price of a position gives the value of the position. |
What are Open Settlements?
| Ans: Open Settlements are settlements where trading has been done, but settlement has not yet been completed. At both NSE and BSE, the trading cycle is on a 'T+2' basis. Thus, trades executed on March 4, 2007 get settled on March 06, 2007. Hence, on March 06, 2007, there will be two Open Settlements with trade dates on March 05, and March 04, 2007. |
How is Realized Profit / Loss calculated?
| Ans: For every position created, you can view the actual and notional profit or loss generated by that position. The Realized Profit is calculated on the transactions, which are closed. It is the actual or Realized Profit/Loss that has been crystallized by closing all or part of a position. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 per share and sell 20 shares of ACC at the average price of Rs.220 per share, then the realized profit or loss is (220-200)*20 = Rs.400. |
How is Unrealized Profit/Loss calculated?
| Ans: The notional or unrealized profit is calculated by comparing the last traded price with the average buy price of the Open Position (that is, the Net Quantity). The Total P&L is the addition of the Realized and the Unrealized Profit. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 and sell 20 shares at an average price of Rs.220, then you have a net buy position of 80 shares in ACC. Suppose the market price of ACC is Rs.225. Then the Unrealized profit or loss is (225-200)*80= Rs.2000/- |
What is short selling?
| Ans:Short selling (or "selling short") is a technique used by people who try to profit from the falling price of a stock. It is a trading strategy that seeks to capitalize on an anticipated decline in the price of a security. Short sellers assume that they will be able to buy the stock at a lower price than the price at which they sold short, netting a profit in the process. For example “A” thinks HUL is overvalued. He sells short 200 shares of HUL at Rs. 520 per share. The stock market crashes after 2 weeks and HUL's share price falls to Rs. 510 per share. “A” buys back 200 shares of HUL and closes out the short sale. “A” gains the difference between the sales proceeds and the purchase costs and pockets Rs. 2,000 from the short sale, excluding transaction costs. |
Why do I need Buying Power for a Margin Sell Order?
| Ans: You need Buying Power for a Margin Sell because IDBIDirect uses the funds blocked for risk management. Initial margin amount is blocked for both buy and sell orders. As soon as a Margin Order is placed, our system would check whether your Buying Power is more than or equal to the Initial margin required. If yes, the order would be accepted and sent to the Stock Exchange. |
How can I be sure that I shall be trading at a price I want to or at a price appearing on the website?
| Ans:On IDBIDirect you have an option to select the Market Depth of scrip wherein the top five bidders and sellers with the quantity and the price at that point of time on the respective exchanges are displayed. This facilitates you to select his bid/offer price. The traded orders are displayed in the “Today’s Trade” option on the site where as the pending order can be viewed from the “Today’s Order” option. Moreover, you also have the option of modifying or cancelling the order till the moment the order is executed at the exchange. Finally, an online trade confirmation reaches you as soon as we receive it from the exchange, while contract notes are dispatched at the end of the day through registered emails. On IDBIDirect, you decide what you want to buy and buy the share at the price you want to and therefore you are in total control of your trades. |
How can I Modify or Cancel my order?
| Ans:You can Modify or Cancel an order any time before execution. You can do this by accessing ‘Today’s Order’ on the Trading Site and clicking on the 'Modify' or ‘Cancel’ hyperlink against the order, which you wish to modify/Cancel. However, you cannot modify/cancel your order while it is
“In Process”, i.e., confirmation is awaited from the Exchange for the acceptance of the placement of any order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified/cancelled. |
How can I know if my order is executed?
| Ans: You can monitor the status of your orders as well as trades online on the ‘Today’s Orders’ screen. The status of an order is updated real-time in your ‘Today’s Orders’ screen. As soon as the order gets executed at the Exchange, it is displayed under ‘Today’s Trade’. As soon as the order gets executed at the exchange, its status becomes 'Traded'. One order could result in multiple trades at the Exchange. On the ‘Today’s Trades’ screen you can view the trade-level details of all trades executed for you. |
What is the Average Execution Price?
| Ans: The order placed by you may have resulted in multiple trades. For each trade, certain quantity would have been bought (or sold) at a particular price. The Average Buy (or Sell) Price, is the weighted average Buy (or Sell) price across all executed trades. |
How can I view the market watch under Power streaming?
Ans: Please follow the below mentioned steps:
- Download Sun Java on your system, a link is provided on the login screen to install it.
- Enable the Sun Java by making the IE settings shown in the PDF link on login screen.
- Disable the Pop-up Blocker on Internet Explorer web browser for a temporary period of time while you are trading.
- Delete cookies and delete files on Internet Options
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What are the timings for placing an After Market Order?
| Ans: IDBIDirect.in provides you with a facility to place your orders after the market hours and this is termed as After Market Order (AMO). AMO can be placed between 17.30 Hrs to 8:45 Hrs the next day. |
What’s the procedure to sell the shares?
| Ans: You need to allocate the shares from the Demat allocation. Put a Sell Order by specifying the sell quantity, price in the order form and click the Submit button. Confirm your transaction by clicking the Confirm button. |
What is to be done when an error message “Exposure not allowed” is displayed while selling the shares?
| Ans:Every order requires some margin to be blocked at the time of placing an order. Even for Sell orders, the system checks for the margin to be blocked. If there is no sufficient margin left in Buying Power to be blocked for the sell order, the system gives the error message “Exposure not allowed”. At this time the user should cancel the pending orders in the system or transfer some funds (approx. 20% of the trade value.) |
What is a contract note?
| Ans: A confirming note, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note shows: the date and time of deal, the title of the security, the number bought/sold, the price paid/received, the total value of the deal, the stamp duty (if a purchase of shares), and the amount of commission charged by the broker. Traditionally, contract notes were posted, but are now often emailed. |
I am not able to see the updated Last Traded Price in the Classic trading platform
| Ans: Unlike the Streaming platform that reflects real time prices automatically, to refresh and view the updated Last Traded Price in the Classic platform you need to click the ‘Get Quote’ button. |
Why a message “Cancelled by Exchange” is displayed while placing an order?
| Ans: This kind of a message is displayed when an order is placed with an Immediate or Cancel Order (IOC) option. |
Why a message “Frozen by Exchange” is displayed while placing an order?
| Ans: This kind of message is displayed when an order is placed at a much higher price than its current market price. |
Why a message “Rejected by Exchange” is displayed while placing an order?
| Ans: This kind of message is displayed when an order is placed outside the upper and lower circuit prices. |
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