What is the disclosed quantity? How is it beneficial for the client?
In normal orders, the entire order quantity is disclosed to the market. But an order with a disclosed quantity allows the investor to disclose only a part of the order to the market. The disclosed quantity, if entered, should not be greater than or equal to the order quantity and should also not be less than 10% of the order quantity.
Disclosed quantity can’t be used when trading futures & options.
For example, Mr. ABC wants to buy 10000 shares of a stock at the prevailing market price. If he does not want to disclose his order size to the market, he can set the disclosed quantity to 1000.
As soon as his 1000 shares are executed, the next order will automatically display with 1000 quantity. This process repeats until he has purchased 10000 shares.