Introducing Iceberg orders

05 May 2022

Active traders lose much more to impact costs than all charges, especially with larger trades. You can now use Iceberg orders on Kite to slice large orders into smaller legs that are executed only once the previous leg is, helping reduce impact costs.

Impact cost, or the money a trader loses in the bid-ask spreads, increases substantially with high volumes or overtrading. Given the very low brokerage costs, it is easy to think that quick buy & sells at small price difference can generate profits, but very tough in reality.

For eg, if an option is at Rs 50 & the bid-ask spread is Rs 0.5, in 10 trades, a trader will lose Rs 5 or 10% of the premium. To profit, a trader not only has to get the direction right, but also be right by a margin of 10% (impact cost) Most traders ignore to factor this in.

You can now also set the validity of all order types in minutes. This can help traders who want orders to be cancelled if not executed within a certain time after a trading signal is generated or after a few minutes of the market opening or a news event & more.

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