Comment on Stop Loss orders - Limit/Market

Arjun1 commented on 08 Feb 2013, 09:51 AM

I am still not clear on using SL and SL-M. Would be great if you could explain with below example.

Current Reliance price 100

I want to buy @ 95 (delivery mode) so I place buy order with limit price @95.

Once I see buy order is executed successfully @95, I place sell order with limit price @115.

To stop loss, I also place another sell order with limit price @90 (Is that correct way to to put stop loss)

My understanding about Limit order is, If the share price doesn’t hit the price I mentioned in limit price, the order will not be executed. So how do we use SL and SL-M in both the above buy and sell order? Thank you.

View the full comment thread »