Dear all,
Today I placed order Sell SL-Market at 8100 at 09.20am. I got filled at 8097. huge 3 pt slippage.
I want guidance from senior.
to avoid such silpage SL- Limit order is solution or there are some other disadvantage of SL- Limit order.
I do not want to miss the trade.
Regards
Mukesh
When you place a SL-M order, as soon as your trigger is hit, the system will place a sell order at market rate i.e what is the best
bid available. So there will be slippages.
In SL-L order, as soon as your trigger is hit, the system will place a limit order i.e it will get executed only if buyers are available at your limit price. Otherwise it will not get executed.
Both have advantages/disadvantages. Market orders are best when you are trading a highly liquid instrument like Nifty/Bank Nifty. If you are in a profitable position and you see the market reversing quickly you can use market order to quickly take some profits. But using market orders on instruments that are not liquid can cause you a lot of pain.
If you want to avoid slippage then you have to use limit orders.
You can use a SL-limit order as below
SL trigger :- 8100
Limit Price: - 8099
