Basics of Stop Loss Order

Dear All, Hi

Pl clear to me following SL theory with example.

Stop Loss order can be placed while placing a fresh order as well as a square off order.

Basics of Stop Loss Order: -

Buy: Market Price < Trigger price < Order Price. (Trigger price entered should be greater than the market price)

Sell: Market Price > Trigger price > Order Price. (Trigger price entered should be lesser than the market price)

When the market hits the trigger price, the order is forwarded to the exchange and the same gets traded at a price between the Trigger price and the order price.

Looking co-operation

Amit

Amit..basically for stoploss order we need to put 3 orders. (1) buy order (2)sell order (3) sell order or buy order (i.e stop loss order)
lemme try by giving example..
xyz scrip...(1) priced at 105 but u want to buy it 50@ 103.. so first u put that buy order.. wen the xyz hits 103 u get ur scrips.
(2) u are targetting a profit of 3 rs per share.. so u put sell order of sell.. @ 106 .. ur profit 150 (3 x 50)
(3) now important.. u knw the support level is 100 so wud not keep if that support level breaks... so u put stop loss order.. infact other sell order put the order price and trigger price at same.. i.e 100.
which ever order is triggered.. u cancel the other one. for eg if scrips hit 106 u cancel the stop loss order...
if it hits 100 u cancel the sell order of 106.
hope it helps you.

Amit..basically for stoploss order we need to put 3 orders. (1) buy order (2)sell order (3) sell order or buy order (i.e stop loss order)
lemme try by giving example..
xyz scrip...(1) priced at 105 but u want to buy it 50@ 103.. so first u put that buy order.. wen the xyz hits 103 u get ur scrips.
(2) u are targetting a profit of 3 rs per share.. so u put sell order of sell.. @ 106 .. ur profit 150 (3 x 50)
(3) now important.. u knw the support level is 100 so wud not keep if that support level breaks... so u put stop loss order.. infact other sell order put the order price and trigger price at same.. i.e 100.
which ever order is triggered.. u cancel the other one. for eg if scrips hit 106 u cancel the stop loss order...
if it hits 100 u cancel the sell order of 106.
hope it helps you.

What happens if
1.sell order is triggered and stop loss order is not cancelled
2. stop loss order is triggered and sell order is not canelled
hoping scrip reaches both the orders in a intraday

Amit..basically for stoploss order we need to put 3 orders. (1) buy order (2)sell order (3) sell order or buy order (i.e stop loss order)
lemme try by giving example..
xyz scrip...(1) priced at 105 but u want to buy it 50@ 103.. so first u put that buy order.. wen the xyz hits 103 u get ur scrips.
(2) u are targetting a profit of 3 rs per share.. so u put sell order of sell.. @ 106 .. ur profit 150 (3 x 50)
(3) now important.. u knw the support level is 100 so wud not keep if that support level breaks... so u put stop loss order.. infact other sell order put the order price and trigger price at same.. i.e 100.
which ever order is triggered.. u cancel the other one. for eg if scrips hit 106 u cancel the stop loss order...
if it hits 100 u cancel the sell order of 106.
hope it helps you.

It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.