Comment on Stop Loss orders - Limit/Market

Ravindranath commented on 17 May 2017, 06:15 PM

Dear Nitin,

If I want to short the stock at a higher price than the CMP, I take it that I just have to use Limit order and only when I want to short it at a lower price than the CMP, a SL-M has to be used.

Now, kindly explain:
1. What happens if I use a Limit order for shorting at a price lower than the CMP?
2. What happens if I use a SL-M to short at a higher price than the CMP?
3. What about this scenario where I want to go long at a lower price than the CMP? Do I have to use SL-M, or just a Limit order?
4. What is to be used if I have to go long at a price higher than the CMP? (although I’m not sure if such a scenario exists).

Thank you.

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