Comment on Stop Loss orders - Limit/Market

Nithin Kamath commented on 29 Aug 2013, 06:41 AM

1. X @ 105, you want to buy for delivery at Rs 100.
Yes put a limit order with product type as CNC @100, so u r correct
Yes if stock goes to 103, you can sell it at 103 as product type as CNC and this will be considered as an intraday trade. Yep you are right about using the same product type.

2. Guess you would have already figured this out, the order type is called bracket and presently not allowed. How you will have to do this is first place a buying at 100 and once it is executed place a SL at 95. If you choose SL-M, when 95 is hit on the exchange a market selling order is sent and if you choose only SL, you have to mention the price at which you have to send this as mentioned in the blog above.

3. “I have to place one buy order SL/SL-M at trigger price Rs 110 to first buy the stock as the buy order will be triggered at Rs 110.” , yes you are correct. But as I said earlier, you can’t place 2 orders at the same time for examples that you have given. You have to wait for the first to execute and only then place the 2nd.
As I mentioned earlier the difference between SL and SL-M is that when the trigger is hit in a SL a limit order is sent and in a SL-M a market order is sent.

Phew!! Hope this clarifies. 🙂

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