What is the Spread order facility on SELFIE Platinum?
A Spread order is a combination order that facilitates the rolling over of open futures and options positions from one expiry to another. It combines individual orders (legs) to create a trading strategy.
For example, Mr. Shah has an open long position in a BANKNIFTY futures contract due to expire on the last Thursday of this month. If he wishes to carry forward his position to the next month, he will have to place 2 orders- to exit his current position, and to enter the next month's contract. With a Spread order, he can place both these orders together and avoid the risk of price fluctuations during separate order placement.
- The exchange has provided brokers with the facility for Spread order placement in the futures segment.
- It is available on SELFIE Platinum in the futures segment for equity derivatives and NCDEX commodity derivatives.
- It is useful for traders who run strategies that require the simultaneous placement of multiple orders. It allows for multiple order placement in the same order window. After execution, it will be shown in your positions as normal contracts.
- These orders have lower margin requirements as compared to placing each leg separately, and are a good roll over tool.
- It is typically used for calendar spread positions which involve buying/selling a particular month's contract and selling/buying (taking an opposite position) the same contract of a different month.
- The rates at which these contracts are traded will be the spread rate, which is the difference between the two futures contracts.
To place a Spread order on SELFIE Platinum:
Step 1. Log in and search for the desired futures contract
Step 2. Press the Enter key to add to Watchlist
Step 3. Use the '+' key to open the order window
Step 4. Select/enter the required fields > Submit
Note: Effective February 1, 2025, There will be no margin benefits for calendar spreads on expiry day
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