Espresso, the subsidiary of Sharekhan, supports several types of orders. In my review of Sharekhan Espresso, I had covered the order types supported by the broker in brief. I have covered the same here in detail.
Orders on Espresso are grouped into these four categories – MIS, MIS+, CNC, and EMF. Let’s first understand the “CNC” type. CNC is the abbreviation for cash and carry. If you have sufficient funds in your trading account, you may want to purchase shares for a long term or for certain days. To do so, you must place a CNC order on Espresso.
When you place this order, shares you bought today will be delivered to your demat account on the next day. The cash and carry orders are not backed by any margin benefit. You must have the amount in your trading account to buy the shares of the specific quantity. For example, to purchase 125 shares of Infosys, you must have this much amount in your account – 125 x latest price of Infosys in the stock market.
One of my favorite features of Espresso is bracket order. BOs save time of the users. They also minimize the losses unless you modify the trigger price after place one. For example, if you create a bracket order for Reliance industries which was trading at a price of Rs 2400, you have to specify three things – stop loss trigger, book profit trigger, and the limit price. Espresso supports market bracket orders i.e. you don’t have to enter the limit price if you choose the option “MKT” on the order form. MKT is a short form for “Market”.
If you fill the first two fields I’ve mentioned in the above paragraph, you will find that the price drops to 1/5 of the actual price of the share i.e. you’re given 5 times margin for buying shares. BO is a part of the category MIS+. The difference between MIS and MIS+ is BO. The former doesn’t support BO but the latter one supports it. Another difference is that MIS orders can be squared off by the user or by Espresso automatically just before the end of the trading session. MIS+ BOs can exit once the price is less than or equal to the price you’ve entered in the “trigger” box or “target” box. Users can exit BOs manually or the system can square off the order automatically.
Before placing any type of order on Espresso, you can see the estimated charges by clicking on the “charges” link. This link appears on the corner left side of the order form.
Espresso can prefill some of the form entries. To set the values for textboxes displayed in the form, click on the gear icon and fill the following fields displayed in the popup:
- favorite product.
- default quantity.
- stop loss trigger.
- book profit trigger.
How much does Espress charge per order? The company charges Rs 20 per order for options and 0.03% on equities if the 0.03% of the total cost of the share is less than 20 else, you’ll be charged Rs 20.
