Comment on Stop Loss orders - Limit/Market

Nithin Kamath commented on 10 Jul 2013, 10:00 AM

Shaf, you are confused I guess,

If you short a stock at 100 for what you are looking at, you will need the following 2 orders.

1. To buy at 95, place a limit buy order at 95.

2. To make sure your loss is not more than Rs 5, you put SL order with trigger price as 105. If you choose SLM, you need to mention only trigger, if you choose just SL, you need to mention trigger and limit price. Limit price will be the price at which you want to buy once stock goes to 105, you can keep limit as 105 itself. But it is always best to use SLM

Make sure that when either of the above 2 orders gets executed, you can cancel the one which hasn’t

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