Best Price Execution (BPE) on Paytm Money

When you buy or sell a stock, the price on the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange) may not be exactly the same. Sometimes the difference is small; sometimes it is significant.

Ideally, you want to buy at the lowest possible price and sell at the highest. But checking both exchanges and calculating the “real” price takes time—time you don’t have when the market is moving fast.

That is why we introduced Best Price Execution. We automatically identify which exchange offers the better deal the moment you open your order screen, while leaving you in complete control.

How Best Price Execution Works

Earlier trades were placed at the “Last Traded Price” (LTP). However, the LTP is just the price of the single last share sold. It doesn’t tell you if there are actually enough shares available at that price for your order.

Here’s how Best Price Execution works:

• We Check Market Depth: We look at the top 3 to 5 price levels on both NSE and BSE in real-time.
• We Calculate the Real Average: We compute a Volume-Weighted Average Price (VWAP). This means we look at the price and the number of shares available to find the “true” tradeable price.
• We Auto-Select the Winner:
  • If you are buying, we select the exchange with the lower average price.
  • If you are selling, we select the exchange with the higher average price.

You can tap the exchange chip to switch the exchange instantly before you place the order. We do not re-route the order after you hit Buy/Sell. The order is sent to whichever exchange is selected on the Orderpad at the moment you place it.

Let Us Understand With Examples

Why This Helps

• Using the top price levels on each exchange gives a more reliable picture of the price you can trade at. A single last traded price can be stale or based on a very small quantity. Weighted averages from real market depth help you avoid such situations.
• The selected exchange is shown clearly on your screen. There are no hidden steps and no changes after you confirm. You simply review the selection and place the order.

What to Keep in Mind

• If your order size is much larger than the quantities available in the top price levels, the weighted averages may not reflect the full execution cost. In such cases, consider checking depth manually or using a limit order.
• Market depth moves continuously, so final execution always depends on real-time supply and demand at the exchange. Best Price helps you start from the more suitable venue, but the market decides the final match.

Frequently Asked Questions (FAQs)

Can I choose NSE or BSE myself?

Yes. You can switch the exchange on the Orderpad before placing your order.

Why not use the lowest or highest last traded price?

Last traded prices can be outdated or based on small trades. Weighted averages from multiple levels provide a more realistic and tradable price.

What if depth changes after I place the order?

Depth changes all the time. Best Price gives you a strong starting point, and the final execution depends on live market conditions at the exchange.

Why do I sometimes see an exchange selected even though its LTP is higher than the other exchange?

We do not use LTP to pick the exchange. The selection is based on the live bid and ask prices and the volume available at those levels. This gives a better idea of the price at which your order can actually get filled.

In fast moving or volatile stocks, these levels can change before you place the order. It is a good idea to quickly check the market depth on both exchanges before confirming your trade.

Summary

Best Price Execution on Paytm Money helps you start with the exchange that shows a better tradeable price based on live market depth and volume weighted averages. You stay in full control of the final selection and the order goes only to the exchange you choose.