These days markets are volatile and we are seeing few stock positions change from extreme sides - open on positive and close on negative or it is the opposite. But that’s what markets are like, and in between that you have opportunities to trade fast and make your profit.
When markets are volatile, you want to profit off of the fast moving sentiment from bearish to bullish and vice versa. So here we are with our latest feature to help you trade smarter and faster. When market sentiments change, you can also change your positions now with our latest offering - in a single tap. No need to place two orders, now in a single order. Yes, you read that right.
Introducing new & industry first feature - Reverse Your Position in single tap
Assume that you bought 1 stock of Tata Motors. And for some reason, the market changes its direction from bullish to bearish. In such market conditions, to profit off the bearish trend you want to short Tata Motors. So now, instead of placing two orders - square-offing the first position and creating a new short position, you can simply reverse the position. So you don’t have to make two trades and pay the brokerage twice.
This feature will help you to execute orders quickly with changing market conditions with a single click and one-time brokerage. We are the first in the industry to have this feature and we believe it would make your trading experience effortless.
Here’s the video for your reference:
Available on Dhan Android & iOS app.
Happy trading!
-Naman
Product
As return on the community that reverse order with save brokerage but it’s not correct explaination that it will not charged brokerage , it charge me as normal order. There isn’t any saving of brokerage. And reverse order is useless as it donot place instantly and we would lose some pips in the liquid market or several pips at illiquid market.
When you take a position, say buy 10 stocks - go to manage positions and tap on reverse, instead of exiting current position of 10 stocks and then placing a short order of 10, Dhan places one single order of 20 stocks to sell.
Instead of 2 orders, we post one single order. Hope this is clear.
But what about illiquid market as there spreads are wider and we donot have reverse position to treat it for limit position. Market order can give any price for the trade and thus the reverse order too and it will affect PnL of the player. And reverse order as written
Was bit assure that it will only charge brokerage for original order not for reverse order after looking at picture but after looking at statement confirmed me that what is actual matter is.
Also that reverse order takes time to processed even after it is market order.
I am unsure of the point you are trying to make - if it is illiquid, it is illiquid for all - market types, and even all platforms. As user, there is always a choice for user to place a limit or market order. Market order - if you place in liquid stock it is always instant, if it is illiquid - say for MRF for example sake, it will take time for sure. It doesn’t matter then which platform then you place orders from - TradingView, Dhan, APIs or for that matter any other broking service.
But in illiquid stock ask and bid spread are generally wider. Assume that we are at one buy positon of ‘x’ stock@2400 and bid of @2800 and ask of @2000 on order book and we placed reverse order in illiquid stock then it will be market excution and we will be selling the stock @2000 direct 400 loss plus we will be sell position and you can see bid price @2800 even if square off the position at market it would 800 loss.
Total loss on that would be 1200.
So it would be better if this reverse order would be work on liquid stock with close spread only. There would be minimum loss to the DHAN client
higher the spread lower the liquidity.
spread=bid-ask
Before placing an order user should check the market depth or one should trade on liquid stocks only. In here as @PravinJ noted if you are placing any sort of market order on an illiquid stock you will end up with slippage loss. The problem is not with the platform.
This boils down to the trading system one is using. I typically take trades on ITM options with around Rs.0.5 spread between bid and ask. This slippage is very small for my trend following system relative to rewards.
If one is scalping, option selling for small profits look for tighter spreads than that.
.
