The Ultimate Guide to Basket Order: How It Works and Why You Need It?
In this article, we will discuss:
- Let’s Understand ‘Basket Orders’ at a Glance
- A Quick Look at How Samco’s New Basket Order Feature Works
- How to Create the Basket Order?
- How to Execute the Basket Order?
- Why Should You Use Basket Orders in Your Trading Regime?
- Enhance Your Trading Experience Today
Trading is a dynamic activity that requires the simultaneous execution of various tasks. As a trader, you may often find yourself spending extended hours in front of a computer screen, carefully analyzing charts in search of the optimal trade setup. Once this setup becomes apparent, the next task on the card is the quick formulation of orders and their sequences.
Whether the goal is to hedge a risky trade or diversify a portfolio, you may often want to buy and sell different instruments simultaneously. However, placing multiple orders individually can be time-consuming and cumbersome, especially when the market is volatile.
This is where a valuable tool comes into play — the Basket Order. This tool enables traders to execute multiple orders with just a single click. In this write-up, we will take a closer look at what Basket Order is and how it can boost your trading game.
Let’s Understand ‘ Basket Orders ’ at a Glance
Basket orders are the type of orders that allow you to place multiple buy or sell orders at the same time. You can include different assets, such as futures, options, and stocks, all within a single bracket order. If you are a trader who engages in different segments simultaneously, using a basket order can be a smart and hassle-free way to trade efficiently.
Along with quick and error-free execution of multiple orders at once, you can unlock other benefits with Samco’s new bracket order feature. You can use intelligent margin optimisation and sequential execution and execute up to 50 orders in a single click.
To understand this better, let us understand the functionality of Samco’s smart basket orders.
A Quick Look at How Samco’s New Basket Order Feature Works
Placing a basket order on the Samco trading platform is a two-step process - (i) creating the basket and (ii) executing it. Let’s take a look at the process.
How to Create the Basket Order ?
Method 1
- Search the instrument that you wish to buy/sell
- Tap on it to open the action menu or Quote page
- Tap on the basket icon available at the top right corner
- Create a new basket or add the instrument to an existing basket
- Choose the order specifications and tap ‘Add to Basket’.
Method 2
- Tap on Orders at the bottom
- Tap on Baskets on the top menu
- Tap on ‘+’ icon to create a new basket
- Name your basket
- Search and tap on ‘+’ icon next to the instrument
- Choose the order specifications and tap ‘Add to Basket’.
How to Execute the Basket Order?
Once the basket is ready, you can execute it in two ways.
Execute All
When this option is selected, all your orders are sent to the stock exchange together. To avoid rejection of orders, you must maintain sufficient funds in your account to cover the Max Margin requirement.
Execute One by One
Upon selecting this option, the orders in your basket are sent to the exchange one after another. This optimal sequencing ensures that the orders are not rejected even if the margin available is less than the Max Margin but sufficient to cover the Final Margin.
Using Samco’s new basket order feature eliminates the need for manual analysis of margin requirements and the determination of order sequencing. Its smart order routing system optimally arranges the orders sequentially to minimize margin requirements.
Why Should You Use Basket Orders in Your Trading Regime?
There are many benefits of using basket orders. For starters, it can save you a lot of time. They say that time is the ultimate currency in a world of trading. Why waste it placing numerous orders manually when a basket order can get the job done in a single click? Its other benefits include -
- Smart Order Addition: Samco’s new bracket order feature optimizes your trades for maximum margin benefit. By using bracket orders, you can quickly execute trades without manually rearranging them.
- Sequential Execution: Samco’s ‘One by One' order execution feature executes your orders systematically as per the chosen sequence. It ensures there is no order rejection due to margin requirements.
- Margin Transparency: You can conveniently check Max Margin and Final Margin requirements based on the available funds and make an informed decision before executing your basket order.
- Total Cost Estimate: Get a comprehensive estimated cost for all legs in your basket, providing clear insight into the total charges associated with your order.
- Reduced Slippage: Often, a volatile market leads to slippage if trades execute at an undesired price. This impact is minimized by basket orders as multiple trades are executed simultaneously at market price.
Enhance Your Trading Experience Today
In intraday trading, the swiftness with which you make decisions and execute orders is crucial. While experience helps you master quick decision-making, a reliable platform with intuitive features is vital for a super-fast trading experience. With Samco’s smart basket order feature, you can achieve unparalleled excellence in executing trade with a single click. Incorporating this tool into your intraday trading strategy can be instrumental, providing you with a robust, predictable, and lightning-fast order execution process. Try it today!
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