uTrade AlgosThe difference arises because the order value is your intended trade, while the traded value reflects the actual executed transaction, which may vary due to market conditions.
To understand the difference, it’s helpful to consider the trading process:
- Order Value: This is the total value of the trade you intend to make. It’s calculated by multiplying the price you specify (or the current market price if it’s a market order) by the number of shares or contracts you want to trade.
- Traded Value: This is the actual value of the trade that executes. It represents the price at which your order was actually filled, multiplied by the quantity.
Here’s why they might differ:
- Price Fluctuations: The market price can change between the time you place your order and the time it’s executed. If you place a market order, the traded value might be slightly higher or lower than the order value due to these fluctuations.
- Limit Orders: If you use a limit order (specifying the maximum price you’re willing to pay or the minimum you’ll accept), your order might only be partially filled, or not filled at all, if the market doesn’t reach your price. In this case, the traded value would reflect only the filled portion or be zero if the order wasn’t executed.
- Partial Fills: Sometimes, especially with large orders or less liquid securities, only part of your order might be executed at your desired price. The traded value would then reflect the value of this partial fill.
Impact on Algo Trading
For algorithmic trading, these differences can affect position sizing, risk management, and execution efficiency. Since algos rely on precise calculations, understanding these variations helps refine strategies for better execution and control.
To set foot into the algo trading world with Share India, visit.
If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.