Issues with Order Execution for Stocks Hitting Upper Circuits

General
1

Hi,

I am facing challenges in placing orders for stocks that frequently hit the upper circuit as soon as the market opens. I’ve noticed the following issues:

  1. Delay in AMO Execution: AMO orders often seem delayed, which reduces the chances of securing these stocks.
  2. Market Opening Order Delay: Even when I attempt to place an order right at the first second of market opening, the order appears to be sent with a delay of about 5-20 seconds.

Could you please clarify:

  1. Why these delays occur and if there are ways to mitigate them?
  2. Are there specific settings, features, or strategies within the Upstox platform that can help improve the execution speed?
  3. Does Upstox offer advanced tools for trading high-demand stocks more efficiently?

I would greatly appreciate your guidance on addressing these issues to enhance my trading experience.

Looking forward to your response.

Thanks & Regards
Sanjay Jain

2

Hi @Sanjay_Jain,

We understand your concern regarding order execution for stocks that hit the upper circuit quickly. Here’s why this happens:

Market Volatility & Execution Delays: In highly volatile stocks, execution at the exchange can take longer due to rapid price movements and order matching priorities.

First-Come, First-Serve at the Exchange: Orders are executed in the sequence they are received at the exchange. Since many traders place AMO or market open orders simultaneously, the execution depends on the queue position.

Impact of Volatility: When a stock moves sharply, the available liquidity dries up quickly, reducing the chances of order execution, especially for stocks that hit circuit limits.

In this scenario, you can place AMO orders earlier (well before markets open) to improve execution probability. You can also use limit orders instead of market orders that can help secure your preferred price rather than chasing volatile moves. Monitoring pre-market trends can help gauge early demand and plan accordingly.

Hope this helps :slight_smile:

1 Like
3

Hi,

I’ve noticed that my orders for stocks hitting the upper circuit at exactly 9:30:00 AM are being prioritized below and not executed on time.

Could you please clarify how much of a delay there is before delayed orders are sent to the exchange? Understanding the process and timeline would help me better manage my trades and expectations.

Looking forward to your response.

Thanks & Regards,
Sanjay Jain

4

Hi @Sanjay_Jain,

Just to clarify, there’s no manual delay in sending your orders to the Exchange from our side. However, every order goes through a sequence of steps - placing, processing, routing and each of these takes time, usually in milliseconds.

The difference between the time your order is placed and when it’s actually received by the Exchange is known as slippage. Under normal market conditions, slippage is typically under 100 milliseconds. However, during volatile periods like market opening, it can extend to a few seconds due to a high surge in order volumes. This is a market-wide behaviour and not unique to our platform. Hope this helps clarify your doubts, thanks.