What is the Spread order facility on SELFIE Platinum/Flip?
The Spread Order facility on trading platforms is a specialized feature designed for rolling over futures and options positions from one expiry to another by combining orders into a single transaction. Spread orders are especially useful for traders managing strategies that need synchronized entry and exit across different contract months, allowing them to avoid the risks of price fluctuation between separate order placements.
For example, suppose Mr. Shah has a long position in a BANKNIFTY futures contract expiring at the end of the month. To carry his position forward to the next month, he would normally need to place two separate orders: one to close the current contract and another to open the next month’s contract. With the Spread Order facility, Mr. Shah can submit both these orders together as a single order, simplifying the rollover process.
Key Features:
- Availability: Spread orders are available on SELFIE Platinum, Flip mobile, and web platforms for equity derivatives and NCDEX commodity derivatives.
- Multiple Order Placement: Enables placing multiple orders in a single order window, which is particularly beneficial for calendar spread strategies (buying/selling one month’s contract and taking an opposing position on a different month’s contract).
- Margin Efficiency: Spread orders generally require lower margins compared to placing individual orders for each leg separately, making them a cost-effective rollover tool.
Pricing: The trade occurs at a spread rate, representing the difference between the two futures contracts involved in the spread.
In summary, the Spread Order facility is ideal for traders looking to streamline the rollover of positions while benefiting from margin savings and reducing the risks associated with separate order placement.
Note : Effective February 1, 2025, There will be no margin benefits for calendar spreads on expiry day. 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
To place a Spread order on FLIP:
Step 1. Log in to Flip.
Step 2. Click the Search bar on the Watchlist page.
Step 3. A window will open up with different categories. Select 'Spread'.
Step 4. Search for the desired future contract and add it to the watchlist.
Step 5. Now, right click on that future contract and proceed to buy.
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