Stock Market Trainig- Introduction of ODIN & How to Place Orders
17
INTRODUCTION The trading on stock exchange in INDIA used to take place through open outcry method without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity, and transparency NSE and BSE introduced nation wide online fully automated “SCREEN BASED TRADING SYSTEM”
Stock Market Trainig- Introduction of ODIN & How to Place Orders
Introduction of ODIN Platform. It's working nature.
Citation preview
INTRODUCTION
The trading on stock exchange in INDIA used to take place
through open outcry method without use of information technology
for immediate matching or recording of trades. This was time
consuming and inefficient. This imposed limits on trading volumes
and efficiency. In order to provide efficiency, liquidity, and
transparency NSE and BSE introduced nation wide online fully
automated SCREEN BASED TRADING SYSTEM
SCREEN BASED TRADING NSEs screen based trading is known as NEAT-
National exchange for automated trading. BSES screen based trading
is known as BOLT- Bombay online trading.
Ticker window
MECHANISM OF ONLINE TRADING NSE has main computer which is
connected through VERY SMALL APERTURE TERMINAL(VSAT) installed at
its office. THE main computer runs on a fault tolerant STRATUS
mainframe computer at the exchange. Brokers have terminals
installed at their premises which are connected through VSATS.
HOW TO PLACE ORDER An investor informs broker to place an order
on his behalf. The broker enters the order through his PC, which
runs under windows NT and sends signal to the satellite via VSAT.
The signal is directed to mainframe computer at NSE via VSAT at
NSEs office. A message relating to the order activity is broad
casted to respective member.
To enter a buy order
BASIS OF OPERATION The online trading operates on the strict
basis of PRICE PRIORITY and TIME PRIORITY
HOW TO ENTER SELL ORDER
Same as the process involved in the placing of the buy
order.
To enter a Sell order
LOGGING ON
On starting NEAT application, the logon screen appears with the
following details. USER ID TRADING MEMBER ID PASSWORD NEW
PASSWORD
TERMINOLOGIES OF ONLINE TRADING Snap quote:- feature available
to get instantaneous market information on a desired security.
Active and Passive orders:- when any order enters the trading
system, it is an active order. It tries to find a match on the
other side of books. If it finds a match trade is generated, if
does not finds match it turns to passive order which is stored in
order book.
Circuit breakers:- Started implementing compulsorily from July
02, 2001. The circuit breakers will be operated at the three stages
of INDEX movement, either way viz at 10%, 15%, 20%.
