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Market Orders Banned / Limit Order Execution Update (API Changes)

Market orders have been disabled via API. Going forward, only limit orders will be allowed from API and AlgoTest.

What do you need to do?

All users are required to update their execution settings for both 920 strategies and Signal strategies.

Entry & Exit order type needs to be LIMIT.

After 31 March 2026, you will NOT be able to see Market order as an Entry or Exit order Type on AlgoTest.

If on 1 April, 2026, a strategy is activated with Market order in its execution settings, the strategy will go directly into error mode. So, it is better to make this change now. 

Read carefully below on the appropriate execution settings.

Frequently Asked Questions (FAQs)​

1. What will happen after 1st April, 2026?​

Answer:
In execution settings, only the Limit Order option will be available.
The Market Order option will be removed from the dashboard, and users will no longer be able to select it.

2. What is the right way to set a limit order?​

Answer:
Users must define an appropriate Limit buffer while placing limit orders. A low buffer may result in your limit order being skipped.

Recommended buffer:

  • Options: Minimum 8–10%

  • Cash & Futures: Around 1%

This helps ensure better execution.

3. How much time will the system chase the price if a Limit order is skipped?​

Answer:
The system will chase the price for up to 50 seconds to fill the order.

4. How does the chasing mechanism work and what will happen in the 50 secs?​

Answer:
The chasing works as follows:

  • Instrument: 25000 CE

  • Order Type: Buy

  • Trigger Buffer: 0 pts

  • Limit buffer: 3 Pts

  • LTP: Rs 100

Chasing during Entry:

  • We will place a Limit order to buy at LTP + Limit Buffer = Rs 100 + 3 = Rs 103

  • As soon as the system placed the order, the price jumped and reached Rs 110, and our Limit order was not filled. 

  • The system will check with the broker that the Limit order is not completed and will increase the price by the limit buffer or Current Limit Price + Limit buffer = Rs 103 + 3 = Rs 106. The system will keep modifying the order and increasing the limit price by the limit buffer for 45 secs till the order is filled.

  • Chasing mechanism in our EXAMPLE will be Rs 103 -> 106 -> 109 -> 112 ->115 -> 118 and so on

  • Limit Price modification happens every time your broker responds that the order is open so, it can happen many times within one sec

Chasing During Exit

  • We have a Stop Loss Limit (SLL order) with Trigger price Rs 100 and Limit Price Rs 103

  • As soon as the trigger price of Rs 100 was reached, the price jumped and reached Rs 110 and our Limit order was not filled. 

  • The system will check with the broker that the Limit order is not completed and will increase the price by the limit buffer or Current Limit Price + Limit buffer = Rs 103 + 3 = Rs 106. The system will keep modifying the order and increasing the limit price by the limit buffer for 45 secs till the order is filled.

  • Chasing mechanism in our EXAMPLE will be Rs 103 -> 106 -> 109 -> 112 ->115 -> 118 and so on

  • Limit Price modification happens every time

IMPORTANT: This is just an example of how chasing works on AlgoTest. Your price modification depends on your limit buffer and will be different from the Rs 3 price modification used in the example.

5. What will happen if the limit order is not filled within 50 seconds?​

Answer:
If the order is not filled within 50 seconds of chasing, the strategy will throw an error AND we shall CANCEL your pending Limit order. So there will be NO open limit order left in your broker’s order book. 

Example: Let us say you wish to Buy a 25000 CE currently trading at Rs 100. As soon as you place the Limit order to buy, with a Limit price of Rs 105, the price spikes and reaches Rs 200. We will chase the price as per the chasing mechanism (Mentioned in Point 4). If after 50 secs, the order is not filled, this LIMIT order will be cancelled and the strategy will be put in ERROR state.

6. How will orders execute in Strategy Builder?​

Answer:
In Strategy Builder, users must place orders using Limit Order only.
Market orders will not work.

7. Will this affect my crypto strategies?​

Answer:
Currently all the changes are being applied platform WIDE and users will only be able to use LIMIT order. Soon, we shall provide exchange-wise execution settings where MARKET order will be allowed for Crypto.

8. How does Exit by TARGET work?​

Answer:
We will modify your Stop Loss Limit order into a Limit order and close the position.

Example: You have a Sell position on 25000 PE

  • Entry Price: Rs 200

  • Stop Loss: Rs 300

  • Target: Rs 100

  • Trigger Buffer: 0 Pts

  • Limit Buffer: 3 Pts

  • Stop Loss Limit Order: Trigger Price Rs 200, Limit Price Rs 203

  • Once the LTP comes to Rs 100, we will convert this SLL order to a limit order to buy at a price = LTP + Limit Buffer = Rs 100 + 3 = Rs 103

  • This is how it happens currently as well. Even today, we DO NOT exit with a market order and cancel the SLL order. 

9. How does Time Based Entry work with Limit Orders?​

Answer: At the time of Entry, we place a limit order with the Limit price being determined based on the LTP and the Limit Buffer.

Example 1: Time based entry Option BUYING

  • Entry time: 9:20 am

  • Instrument: 25000 CE

  • Order Type: Buy

  • LTP: Rs 150

  • Trigger Buffer: 0 Pts

  • Limit Buffer: 3 Pts

  • Limit Price Sent @ 9:20 am: LTP + Limit Buffer = Rs 150 + 3 = Rs 153

Example 2: Time Based entry Option SELLING

  • Entry time: 9:20 am

  • Instrument: 25000 CE

  • Order Type: Sell

  • LTP: Rs 150

  • Trigger Buffer: 0 Pts

  • Limit Buffer: 3 Pts

  • Limit Price Sent @ 9:20 am: LTP - Limit Buffer = Rs 150 - 3 = Rs 147

10. How do OVERALL Settings like Overall SL/Target/Lock profit/Lock & Trail/Trail SL work?​

Answer: At the time when the Overall conditions are met, all the leg Stop Loss Limit (SLL) orders are converted to Limit orders to exit all the positions

Example: Straddle Sell with Rs 1300 Overall SL

  • Instrument: 25000 CE & PE

  • Entry Price CE: Rs 100

  • Entry Price PE: Rs 90

  • Legwise SL: 50%

  • Exit Trigger Buffer: 0 Pts

  • Exit Limit Buffer: 3 Pts

  • Stop Loss CE: Trigger Price = 150, Limit Price = 153

  • Stop Loss PE: Trigger Price = 135, Limit Price = 138

  • Overall SL: Rs 1300 or 20 premium points

  • Once the Overall SL condition is met: CE Price = 130 & PE price = 80

  • MTM Loss: (100 + 90) - (130 + 80) = - 20 pts or Rs 1300

  • **Convert SLL order to Limit Order: **

    • CE Limit Price: Rs 130 + 3 = Rs 133

    • PE Limit Price: Rs 80 + 3 = Rs 83

If the limit order is not filled, chasing takes place.

11. Does using Limit order increase slippages?​

Answer: NOT AT ALL! On the contrary, in most cases it leads to reduced slippages. Let us look at it case by case:

  • Time based Entry: If you use an appropriate Limit buffer, your limit order will get filled and the prices you receive will be the best bid/ask price available, similar to a market order. 

  • Momentum/range breakout/Re-cost based entry: Using limit orders lead to reduced slippages. If you place a Stop Loss Limit order in advance on your broker terminal (Which goes directly to the exchange NSE/BSE) with your desired entry price, your slippages will reduce compared to if you use a market order. Market order is placed by AlgoTest after we receive the price from your broker on the pricefeed. This process is slower than if an advance order is already placed in the broker terminal (Which goes directly to the exchange NSE/BSE).

  • Stop Loss based Exit: Using limit orders lead to reduced slippages. Legwise SL places a limit order in advance in the broker terminal (Which goes directly to the exchange NSE/BSE), which leads to lower slippages compared to sending an exit order via market order when the price comes on the pricefeed. 

  • Exit based on Target/Overall settings: Your SLL orders in the broker terminal (Which goes directly to the exchange NSE/BSE) are modified into Limit orders and your exit happens. If you were always using Limit order as Exit order type, this was the mechanism even today. 

In reality, most users are already using Limit orders to enter and exit even today. The slippages shall remain unaffected as long as the proper limit buffer is maintained. 

12. Can I resume my strategy if the price is not filled and the strategy goes into error?​

Answer: Yes, you can resume your strategy. If your strategy goes into error after chasing the price for 45 secs, your limit order is cancelled. If you resume your strategy, we shall again start chasing the price from the CURRENT LTP at the time of resuming the strategy.

Example: The chasing works as follows:

  • Instrument: 25000 CE

  • Order Type: Buy

  • Trigger Buffer: 0 pts

  • Limit buffer: 5 Pts

  • LTP: Rs 100

  • Let us say you wish to Buy a 25000 CE currently trading at Rs 100. As soon as you place the Limit order to buy, with a Limit price of Rs 105, the price spikes and reaches Rs 200. We will chase the price as per the chasing mechanism (Mentioned in Point 4). If after 45 secs, the order is not filled, this LIMIT order will be cancelled and the strategy will be put in ERROR state.

  • Strategy Resumed

  • Current LTP = Rs 210

  • Chasing now will start as per the new LTP. We shall place a Limit order to Buy at New LTP + Limit Buffer = 210 + 5 = Rs 215. 

  • If this order is not filled, chasing will start again