How does Tranching work ?
Tranching in Tradetron
Tradetron allows you to split your multiple lots and multi leg order into various tranches so that you can get the best price with the least slippage.
Tranching has two parameters, Tranch size and One tranch every
You can setup this in the Tranching dropdown which by default is at 100% meaning the total quantity is pushed at one go.
If you wish to send it in 2 tranches, set this to 50% ; 10% for 10 tranches, 1% for 100 tranches.
If there is only 1 leg and the quantity is more than enough for each tranch, it will be equally divided, the remainder of the lots is handled in the last tranch.
So lets say there are 21 lots and 10 tranches, the engine will post 2 lots in each tranch and the balance 1 lot is handled in the 11th tranch. If the number of lots are lesser than the tranches then it will get completed with the least no of lots per tranch possible.
So if there are 3 lots and 10 tranches it will get executed in 3 tranches of 1 lot each. If there are multiple legs with differing quantities then the one with the least quantity will get finished before the last tranch is fully executed.
So lets say for leg 1 the quantity is 21 lots and for leg 2 is 5 lots so from tranch 1 to 5 the order will be for 2 lots of leg 1 and 1 lot of leg 2 ; from tranch 5 to 10 the order will be 2 lots of leg 1 and the 11th tranch will be 1 lot of leg 1
Note: If the first tranch is not filled, the second tranch is not executed.
Tranching has now been updated to allow you to fire orders more than the max freeze quantity of the exchange.
Example: If the max freeze quantity is 36 lots for Nifty Bank, and you fire an order for 40 Lots the server will automatically break down your order into two parts. One will fire a trade of 36 lots and then the remaining quantity will be fired. This will ensure that you never get an error due to max quantity freezes set by the exchange.
Check the video below for more detailed info
Updated on: 07/12/2022