Robo Orders: Your Intraday trading Ally

6 mins read
by Angel One
ગુજરાતી

Are you interested in intraday trading?

Do you find it difficult to make time for trading from your busy schedule?

Now, trade intraday at ease with our Robo Orders, and get back to your work on time.

What is a Robo Order?

A Robo order is a multi-leg order used in intraday trading that allows you to place two more orders along with your initial order. Among the other two orders, one of the orders is to set returns at the specified price and the other is to minimise losses at a trigger price.

Important features of Robo Order

  • Robo order can only be placed in Intraday trading
  • It is a 3-leg order that includes an initial Buy/Sell Limit Order followed by a Target order and a Stop loss order
  • Saves your time as you need not keep a tab on market movements all time. Just place your orders and get back to your work.
  • Effective in minimising losses with Trailing stop loss feature

How do Robo Orders work?

Robo order works as follows:

Case 1: Case2:
If the initial order is a Buy order, then both the Target and Stop-loss orders should be Sell orders. If the initial order is a Sell order, then both the Target and Stop-loss orders should be Buy orders.
For instance, if you are buying the shares of  Company XYZ at ₹ 1000, and want to place a Robo order, let us assume you’ve placed,

  • An initial Buy order at a limit price of ₹ 1,000
  • A Sell order with a target price of ₹ 1050
  • A Stop-loss Sell order with trigger price at ₹ 990.

Once the initial limit order is filled and any of the 2 following orders is triggered and executed, the remaining order will automatically get cancelled.

In the above case,

  • If the initial limit order at ₹ 1,000 is executed and the market moves in favour of the investor and hits the target price of ₹ 1,050, the Target order is triggered and executed, the Stop loss order will be automatically cancelled.
  • If the limit order is executed and the market moves in the reverse direction and hits the trigger price of ₹ 990, the Stop-loss Sell order is triggered and executed automatically cancelling the Target order.
 For instance, if you are selling the shares of  Company XYZ at ₹ 1000, and want to place a Robo order, let us assume you’ve placed,

  • An initial Sell order at a limit price of ₹ 1,000
  • A Buy order with a target price of ₹990
  • A Stop-loss Buy order with trigger price at ₹ 1005.

Once the initial Limit order is filled and any of the 2 following orders is triggered and executed, the remaining order will automatically get cancelled.

In the above case,

  • If the initial limit order at ₹ 1,000 is executed and the market moves in favour of the investor and hits the target price of ₹ 990, the Target Buy order is triggered and executed, the Stop loss order will be automatically cancelled.
  • If the limit order is executed and the market moves in the unfavourable direction hitting the trigger price of ₹ 1005, the Stop-loss Buy order is triggered and executed automatically cancelling the Target Buy order.
Note: If your first-leg order is executed and neither the second-leg nor the third-leg order gets executed your position will get auto-squared off at 3:10 pm.

 Trailing Stop loss in Robo Orders

The Robo Order comes with a unique feature of trailing stop loss, where you can trail your losses to minimise the losses and generate the possible returns out of every trade by setting a LTP Jump Price.

Case 1:For example, if you are buying a scrip ‘X’ at a limit price of ₹ 100 with a Stop loss Sell order placed at ₹ 90 and target price at ₹ 110, and if you have set a LTP jump price of ₹ 2, then for every ₹ 2 rise in Last Traded Price (LTP), Stop loss Sell order trigger price will jump by ₹ 2.

  • In the above case, if LTP becomes ₹ 102, the trigger price for Stop loss sell order will jump to ₹ 92 and so on.
  • However, the stop loss remains unchanged if the LTP goes down in this case. The Stop loss trigger price remains at ₹ 90 if the LTP falls below ₹ 100.

Case 2:For example, if you are selling a scrip ‘X’ at a limit price of ₹ 100 with Stop loss Buy order placed at ₹ 105 and target price at ₹ 90, and if you have set a LTP jump price of ₹ 2, then for every ₹ 2 fall in LTP, stop loss Buy order trigger price will fall by ₹ 2.

  • In the above case, if LTP becomes ₹ 98, the trigger price for Stop loss Buy order will fall to ₹ 103 and so on.
  • However, the stop loss remains unchanged if the price goes up in this case. The Stop loss trigger price remains at ₹ 105 if the LTP rises above ₹ 100.

Robo orders give you all the convenience you are looking for in Intraday trading. Now that you know how to place Robo orders, relax and enjoy your Intraday trading journey. Happy trading!!

FAQs

  1. What is a Robo order?

A Robo order is a multi-leg order used in intraday trading which allows you to place 2 more orders along with the initial order. This order type can be used to book profits at specified target prices as well as to minimise losses at a trigger price.

  1. Can I place a Robo order on the NSE and BSE?

Yes, Robo orders can be placed in both NSE and BSE

  1. Which trading allows to place Robo Orders?

You can place Robo orders only in Intraday trading.

  1. Can I avail MTF facility for Robo order?

No, the MTF facility is unavailable for Robo orders.

  1. Can I place a delivery order using RoBo order?

No, you cannot place a Robo order in Delivery trading.

  1. Can I place Robo orders in commodities and currencies?

Robo orders can only be placed in the cash market segment (Equity and Derivatives) for stocks and indices.

  1. Can I place a Robo order in all stocks?

You can place a Robo order in all the cash segment scrips available for Intraday trading.

  1. Can I place a Robo order at any time during the day?

You can place a Robo order between 9:15 AM to 3:10 PM on a trading day.

  1. What if my Robo order does not get executed during the day?
  • If your first-leg order (initial Limit order) doesn’t get executed during the market hours of the trading day, then the Robo order will get cancelled.
  • If your first-leg order is executed and neither the second-leg nor the third-leg order gets executed your position will get auto-squared off at 3:10 pm.
  1. How to place a Robo order?
  • Click on the scrip you want to place an order
  • Click on Buy/Sell
  • Go to Advance Trade & click on ‘Robo Order’
  • Fill in the quantity and respective prices
  • Click on Buy/Sell and Confirm Buy/Sell

 How many times a Robo order can be modified?

Robo order can be modified in the following ways any number of times:

Initial Limit Order Target Buy/Sell Order Stop-loss Buy/Sell Order Modification case
Unexecuted Unexecuted Unexecuted Only the initial Limit order can be modified
Executed Unexecuted Unexecuted Only Stop loss and Target orders can be modified
Executed Executed Cancelled Cannot be modified
Executed Cancelled Triggered Cannot be modified
  1. How does a Robo order works?

Refer to ‘How do Robo orders work?’ in the above article  to learn how Robo order works in each case.

  1. What is the Stop-loss condition in Robo order?

Robo Order comes with 2 Stop loss conditions:

  1. Normal Stop loss, where you only set a Stop loss trigger price
  2. Trailing Stop loss, where you set a Stop loss trigger price as well as a LTP Jump Price. Learn how to place a Trailing Stop Order in Robo Orders here
  1. What is Trailing Stop loss in Robo Order?

The Robo Order comes with a unique feature of Trailing stop loss where you can trail your losses by setting a LTP Jump Price, to minimize the losses and generate the best returns out of every trade.