TWAP-Price Band

In the context of TWAP - Price band is a risk control feature that sets an upper and a lower price limit. This ensures that the trade is not executed at a price that is less or above the price limit set.

When To Use?

It is ideal to use TWAP - Price band when you want to ensure that the trade price is not sacrificed due to inconsistency in the execution arising due to unexpected price swings.



How it Works?

Orders are sent based on the above parameters

1 Once the start time is reached, a quick check is done to determine if the last traded price matches the price range specified by the user
  • If it does, the order, equal to the slicing quantity is placed
  • If not, then it waits for a time equal to time interval to do a double check
    • 2 The Automated strategy does a check after every time interval and sends order slices accordingly
    3 Once the total quantity is met or the time is ended, it stops




    When not to use?

    We strongly recommend you to not use this automated strategy for illiquid stocks (including out of the money Options)

    Download The PL Capital App

    Open your PL Account in minutes!

    • PL Capital Logo

    • Regd. Office : 3rd Floor, Sadhana House,
      570, P. B. Marg, Behind Mahindra Tower,
      Worli, Mumbai - 400 018, India

      View on Google Maps

    • Tel. : 02266322222

      Call us

    Prabhudas Lilladher Private Limited | CIN: U67190MH1983PTC029670 | Registered Office Address: 3rd Floor, Sadhana House, 570, P.B. Marg, Worli, Mumbai – 400018, Maharashtra, India | SEBI Registration Details: Stock Broking: INZ000196637 [Membership Codes: NSE – 05977; BSE – 564; MCX – 40690] | Depository Participant: IN-DP-439-2019 [DP Codes: CDSL – 12011300; NSDL – IN303868 | Portfolio Management: INP000009001| Research Analyst: INZ000000271 | Investment Advisors: INA000018267 [BSEASL Membership Code: BASL2042] | AMFI ARN: 3276 | Compliance Officer: Mrs. Snehal Kathrani; Tel: 02266322420; email: co@plindia.com | For any Grievance/ Dispute: Stock Broking; email: grievance-br@plindia.com; Tel: 02266322366; Depository Participant; email: grievance-dp@plindia.com; Tel: 02266322452; Portfolio Management; email: grievance-pms@plindia.com; Tel: 02266322350.

    To register your grievance on SCORES log onto: https://scores.gov.in/scores/Welcome.html. Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, Email ID

    To register your grievance on Smart ODR Portal log onto: Online Dispute Resolution Portal (ODR Portal).

    Standard Disclaimers: (a) Investment in securities market are subject to market risks, read all the related documents carefully before investing. (b) Brokerage will not exceed the SEBI prescribed limits. (c) Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

    The brand name and Logo ‘PL Capital’ are the registered trademarks of Prabhudas Lilladher Advisory Services Private Limited which is the holding company of Prabhudas Lilladher Group of Companies .

    Prabhudas Lilladher Private Limited is not associated with any unregulated platform which claims performance/return for algorithmic strategy for trading. Trading with unregulated platforms for algorithmic strategy shall be at your own risk and Prabhudas Lilladher Private Limited or its affiliates shall not be liable for the same.

    Risk Disclosure on Derivatives: (a) 9 out of 10 individual traders in equity futures and options segment, incurred net losses. (b) On an average, loss makers registered net trading loss close to ₹ 50,000 (c) Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs. (d) Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

    Source