Comment on Stop Loss orders - Limit/Market

Krishna commented on 14 Oct 2017, 06:56 AM

Rajat,

You can place SL/SL-M buy orders. That is possible but there is one catch.
Normally we used to buy shares at lower price and sell at higher prices but what if after buying shares price started to go down? So some people will buy share only when price from their CMP started to go up. They will loose little bit of money but they will be ensured that the price is moving in their direction. Hence if you are going for fresh buy in intraday put your SL/SL-M trigger price more than CMP. It will 100% execute without any error.

Eg.
Stock-BPCL
CMP-485

Case-1: Normal CNC buy order (Here you can provide Limit order also. No need to provide trigger price)
Wait for price to go down and purchase and whenever price is higher than your buy price sell your stocks with MIS (SL/SL-M).
Lets say price has gone upto 490.
To Sell-
1. SL:
Limit price < Trigger price < 490
after putting these values you can sell your shares any time at higher price more than 490 and whenever price touches trigger price automatically your stocks will go to exchange for to be executed at limit price provided by you.

2. SL-M (here you have to provide only trigger price)
Trigger price Trigger price > 485

2. SL-M:
Trigger price > 485

Sell order is same as that of above.

Please note, SL/SL-M during intraday buy is generally used when you want to ensure that price will move in your expected direction.

View the full comment thread »