Comment on Stop Loss orders - Limit/Market

Nithin Kamath commented on 21 Nov 2013, 02:46 PM


The first order that you placed, SL-M buy with trigger of 36.20 when the market was at 35.90 is the correct way of doing it. The only way this can get executed is if the markets was illiquid and price moved to 36.20 and fell immediately to trigger your buy order.

The second SL-M order you placed was a wrong order. If market is trading at 36.2 and you place a SL-M buy order with trigger at 35.9, your order will get triggered immediately since the price is lower than your trigger price and will get bought at the best available price. In this case all you had to do was place a limit buying order at price 35.9

a. Buy SL-M with trigger 102.
b. Sell limit with price 104

a. Buy limit with price 98
b. Sell limit at 99.

a. Sell Sl with trigger 95.05 and limit price 95. (This because you said you don’t want to place market at 95, but want to sell at exact 95)
b. Buy limit at 93

a. Sell limit at 105
b. Buy limit at 102.

Before you trade futures, give it a shot with equity shares, so you can figure this out with practice.

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