Comment on Stop Loss orders - Limit/Market

Krish commented on 11 Jan 2014, 06:48 PM

What is the difference between a normal LIMIT buy order and Stop Loss(limit) buy order?
Lets say a share X is currently trading at price 100, now I want to buy it once the price reaches 105. For this I can place a normal LIMIT buy order with LIMIT price 105 OR I can place a SL-L order by setting the trigger price at 104 and limit price at 105 ? isn’t it correct?
Can I place a Stop Loss alone for buying share for the first time -I mean without placing a normal order can I use stop loss orders for buy/sell – is there any restriction?

Also please can you help with the below requirement:

Share X
LTP 343

1. I want to buy X if it goes up to 346 and put a sell SL-L 343 and exit sell LIMIT order at 350
2. I also want to short sell X if price comes down to 341 and buy SL-L 343 and exit buy LIMIT order at 337

For 1, my idea is
Place a normal LIMIT buy order with a LIMIT 346
Place a sell SL-L order with a Trg Price 344 and limit price 343
Place an exit order with LIMIT 350

However it may happen that the price reaches 344 and Stop Loss gets triggered first( as i believe the SL doesn’t have any dependency whether the normal order was executed or not) , so I’ll be left with Short sell position -isn’t that correct?

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