Dear All,
When we started building this community, we focussed a lot on understanding the pains that traders and investors have, and exploring if we could build products and features that could solve it. We have shipped faster and built incrementally - which means it helps us release new features, as well as iterate on them as the usage of these features, products and platforms becomes more and more evident and we are able to gather insights…
Lately, if you may have noticed, we have been talking a lot about performance of some of the core features and platforms of Dhan, and underlying thesis / thoughts behind the same and also how these are being consumed by our users.
We started long time back with - What goes behind the scenes on Charts, later started with Performance of own trading engine - DEXT, have kept updating the same (one more post is due), also sharing the technical architecture of DEXT and more recently we launched our first order type that we build on top of DEXT - Super Orders which was followed by the end-user performance of Super Orders by traders. We continue to build-upon DEXT in many ways and have also recently completed a massive infrastructure upgrade that resulted in even better performance (a post is due as mentioned above).
Dhan had introduced Iceberg Orders for traders and investors who want to execute very large orders quickly by automatically slicing the same. It should help traders to overcome the limitations of freeze limits set in exchange. Iceberg Orders automatically break down a large quantity order into smaller, visible slices, executing them smoothly. And over time, Iceberg Orders became a go-to tool for thousands of traders on Dhan looking to optimize their entries and exits.
Just a few weeks back we introduced a major update with Icerberg Plus - where DEXT automatically upgrades the Iceberg Order to Iceberg Plus as long as you hold required margins for the execution of the same. This turned out to be a powerful upgrade to the original Iceberg Order. Unlike regular Iceberg Orders, which send one slice (leg) after the other in exchange, Iceberg Plus allows all slices to be sent to the exchange simultaneously, significantly enhancing execution speed. This meant faster fills, reduced slippage, and better price control for large-volume traders.
Since its launch, the adoption of Iceberg Orders on Dhan has been phenomenal. As Dhan is home for serious and professional power traders, the features like Iceberg really helped them in their trading. Even after the launch of Iceberg Plus, we continued with the Regular Iceberg order as well. Till today, 80% of all Iceberg Orders are routed as Iceberg Plus. But what is even more exciting is the data that tells us about execution speed.
When comparing execution time, Iceberg Plus stands out significantly. The speed to execute an Iceberg Plus order is around 60% faster than regular Iceberg orders, and much faster when compared to the already faster standard order types. This means users who choose Iceberg Plus are not only benefiting from slicing but also getting faster executions, crucial in volatile markets.
At Dhan, traders can slice a single large order up to 99 individual legs using Iceberg Orders. Each of these legs can carry a quantity up to the exchange-defined freeze limit. For example, in Nifty derivatives, the freeze limit is 1,800 quantity, which is 24 lots. This means, in one go, a trader on Dhan can effectively place up to 1,78,200 quantity (1,800 × 99) through a single Iceberg Order.
In regular Iceberg Orders, each of these 99 legs is sent to the exchange one after another. While this ensures controlled execution, it also means the total time taken to complete the full order with upto 99 legs can vary between 1.5 to 2.5 seconds. This is where Iceberg Plus brings a meaningful difference. Instead of sending legs sequentially, Iceberg Plus fires all slices to the exchange simultaneously, drastically reducing the end-to-end execution time and offering a level of speed that is game-changing.
In Iceberg Plus, when a 99-leg order is placed, the entire execution completes in just around 600 milliseconds, that is ~6 milliseconds per order. The aggregate number is much lower for lesser legged order. For traders dealing in high volumes, where every millisecond matters, this translates into a decisive edge. The full order gets dispatched, received, and acknowledged by the exchange in well under a second. What once took multiple seconds is now nearly instant.
As always, this is just the beginning. The journey of execution excellence continues. Iceberg Plus is a glimpse of what DEXT can do, and we are working on more advanced execution tools that will further redefine what is possible for active traders on Dhan.
Try Iceberg Plus, you will feel the speed in play on DEXT.
Pravin