Hi Dhan Team,
Visualizing order flow via Market By Order (MBO) data is a massive step forward, but the true power of MBO lies in execution efficiency. Currently, when identifying high-conviction order flow events—such as large resting institutional blocks or aggressive absorption—traders must manually calculate prices and place limit orders, often resulting in missed fills or adverse slippage.
I am requesting the addition of MBO-Triggered Conditional Limit Orders on DEXT T3:
1. “Join Passive Liquidity” Limit Orders (Queue Positioning):
Allow traders to place a limit order directly behind verified resting passive limit orders detected in the MBO feed.
The order should dynamically track the resting block: if the large resting order moves or cancels, the system alerts the trader or adjusts the limit price accordingly.
2. Absorption / Event-Triggered Limit Orders:
Allow triggers based on real-time execution markers (e.g., Diamond or Square markers indicating large aggressive trades hitting large resting blocks).
Example logic: If an aggressive sell order of \ge X quantity fails to break a resting bid level and gets absorbed, trigger a limit buy order at the current bid to ride the rejection.
3. Book-Depletion Limit Exits:
Enable limit exit orders that automatically trigger when resting queue depth at a specific price level drops below a set threshold, protecting against liquidity vacuum slippages.
Community Benefit:
This feature bridges the gap between advanced order flow analysis and rapid execution. Instead of treating MBO data solely as a charting indicator, traders will be able to interact directly with the order book mechanics, giving Dhan a market-first edge in quantitative and institutional-style retail trading.
How MBO-Based Limit Orders Function Mechanically
Queue Protection: Placing a limit order one tick in front of a verified massive passive block uses that resting order as a “shield,” minimizing downside risk if market orders hit the level.
Absorption Fades: When MBO data detects that heavy market aggression is failing to move price through a resting wall, an automated limit order captures the reversal before the book thins out.
