Comment on Margins- 2 Exit orders for 1 position

Rahul commented on 26 Apr 2019, 05:59 PM


Getting confused in placing orders with Stop loss and Target for intraday. Need some help here.

Lets say I want to buy 1000 qty of X stock at the current market price which is 100 with stop loss at 98 and a target price of 104. My capital will be 11K with 10x margin. Total capital with margin 1.1L.

A) As per my understanding, I need to place 3 orders for the above scenario.

1) MIS market order for buy position.
2) MIS limit order for 104 for my exit position.
3) MIS SL-M order for 98 for my exit position.

I will have to close on of my positions either exit or stop loss position manually here I guess.

If I do the above, would I be requiring additional margin requirements or not? Also, this step is a little tedious. Any other alternatives to get it done efficiently?

B) I understand that the above scenario can be executed with bracket orders where the stop loss will be market order and target will be the limit order but my entry in bracket order will be limit order not market order. To make my entry position a market order instead of a limit order. I need to place a buy price higher than the current market price. So in bracket order, if the stock is trading at 100, if I put a price of lets say 101 or 110, the trade will be executed at market price of 100. Am I correct here?

Any help in clearing my confusion will be much appreciated.


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