Comment on Stop Loss orders - Limit/Market

Nithin Kamath commented on 12 Aug 2013, 07:04 AM

sharekumar Aug 12 2013, 10:51 am
Thank You for Your detailed Answers.

1.Now in below Example, Which is I have Asked You at Aug 10 2013, 3:33 pm

For example,

I Buy XYZ Stock @ Rs.100 and for safe side I put Sell Order In Stop Loss in Market Price Mode @ Rs.97

Now Stock Price moves in my favour and LTP is Rs.106. I am still expecting that price of this Stock will go up ferther at Rs.110.

But I do not want to Loss my initial profit / winning situation. So I Modify My previous Stop Loss Order and Put Price Rs.105 instead of Rs.97

And also I Place Normal Sell Order @ Rs.110

Now for any reason – Power Cut, Computer Problem – I am not able to cancel my remaining order.

In above example, If Normal Sell Square Off Order executed @ Rs. 110

So What will happen to pending Stop Loss Order. Will It executed As Short Sell Order If Price go down @ Rs.106 ?

2.For Options

Its Better for me that,

If I am Bullish, I have to Buy Call Option and

If I am Bearish, I have to Buy Put Option.

Other Two Are more risky and not suitable for me. Right ?

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