Did anyone trade with IndBank online trading facility

hello,

I am trading with Indbank online trading platform. I have some queries to clarify if anyone can answer me would be greatly helpful.

Did anyone earlier trade or trading with Indbank merchant banking services ltd. trading platform?

I have some queries regarding StopLoss feature in the trading facility screen while doing intraday. any insights into it would be highly appreciated.

Thanks.

yes i have been trading with indbank online trading facility

can you help me please in the stoploss issue. i'm relatively a beginner.

The other day I placed a shortsell order [email protected] with a StopLoss at 431. My order got executed, I went and checked my order book, it showed sold 50 shares without 431 being reached. Now is that correct when I placed SL?
So my question is when the order got executed so what is the purpose of SL? and when does it come into picture?

suddenly there was a price surge and it went to 435, now does it indicate my SL was triggered or not? but my sold price was 425.5. so what is the point in setting SL? when my order got executed for 425.5?

The same way I placed a buy order 50@422 with SL 421.5 and it did not execute and was squared off at 424 by closing time.

So where does SL come into picture in the above scenario? Did I go wrong anywhere? Correct me if i'm wrong.

Sai

Ok How the Sl order works.
First if you want to sell at 431, all u need to do is place a Normal order to sell @ 431.When the price reaches 431 it will be sold off. No need to give stop loss for that.

The stop loss order if u see will have a trigger price and a price. In case of sell orders, the price has to be lesser than or equal to the trigger price. What happens is if the price falls and reaches your trigger price, your order gets triggered and it will get executed at your price. Please note that if the price is 425 and u place a sl sell order with trigger at 431, it means the order has already trigered because the price is 425 ie below 431. So your order is activated and it will get executed.

So when do you use a Stop loss order to sell?

Suppose you bought 50 shares at 431. You want to take a risk of only 3 rs per share. ie if the price falls to 428 you want to square off. In that case 428 becomes your stop loss.

How u place that order?

You place an identical sell order, ie 50 shares with trigger at428. And you give the price at 427.9. Now what happens? As the price falls and reaches 428 your stop loss is trigerred and your order is now activated. As the price reaches 427.9, your order will be executed depending on how many orders were activated before your order. Now suppose your stop loss got trigered but the price fell quickly to 426. It is quite possible that your order does not get executed at all. Tht is because, as soon as the sl is trigered your order will show as sell 50 @ 427.9. But since the price fell too fast there may be no buyers ready to buy at that rate. And your order gets executed only if there are buyers to buy at the particular rate.

The second problem u mentioned might be similar one. By the time you placed the order the price would have already crossed 422 so it wont get executed at that price since for you to buy at 422 u need someone to sell at that rate. Which no body would be ready coz the price is above 422.

How to place a SL buy order?

Suppose you have shorted 50 shares at 431 and want to limit your losses at 3 per share, ie you want to square off or buy back if the price rises and crosses 434. Then you place an identical buy order with 50 shares and triger at 434 and price at 434.1. When the price rises and reaches 434 your order is activated and will get executed at 434.1 Similar to previous case if the price rises suddenly and shoots up to above 434.1, very much possible your order does not get executed.

In such cases if you leave the price column blank, then your order will be executed at the market price as soon as the sl is trigerred.

Hope it helps

Thanks for the wonderful explanation.. Let me go through the process once again and revert back to you with doubts if any.

Say if I got a call for shorting with CMP/LTP @446; Sell below 454; target 440-426; SL 460.

So how do i place the order for shorting ???

How do I place order for buying?

thanks in advance.

CMP is 446 and you have got a call to sell short below 454 means you are already late. because the call has already triggered. It has asked you to short below 454 which it already is. The call must have been given when the price was above 454. That s why they said short below 454. Hope you get the point.

Still if you want to enter. Sell at 446 normal order. And place another order for buy with same quantity and trigger at 460. And price equal to or more than trigger.

If you had got the call before 454 you would place a SL order (to short)for sell with Trigger at 454 and price equal to or less than trigger. But this works only when the CMP is more than 454. If it is less than 454 it means it is already triggered.

I know i was late in getting the call and my calculations were wrong on paper too....so the delay.
In the above scenario, I Sell 50@446 normal order, and then Buy 50@460 with trigger 460. Then am I not at loss of 14*50=700/-?

Is normal order supposed to be assuming that I already HOLD the scrips?

Please pardon my ignorance in understanding or grasping the information.

The buy order is the stop loss order. It is your protection incase the price goes up after you sell. In such a scenario as the price rises the stop loss is trigerred and your order will get executed if the price reaches 460. Not before that.

Suppose you sell 50 at 446 and place sl order at 460 with trigger at 460, the order is not activated as long as the price does not reach 460. Now when you short sell at 446, you hope the price to go further down.. What if you are wrong? and the price started to move up? Stop loss order will save you from a huge loss by limiting your maximum loss to 700 rs. Got the point? It comes to picture only if price rises and reaches 460 not before that.
Suppose price falls and reaches 435 and you feel you ll book half profit. So you can just square off from the net position tab and modify the quantity to 25 and keep price as 435 order type RL. 25 shares will get squared off at 435. Then you need to modify your stop loss order and reduce the quantity to 25 as that is what is remaining. You can even move your Sl trigger and price to your entry point so that even if the price goes up your position will be squared off at the entry point and th profit booked on 25 shares will be there..

I profoundly thank you for the insights into StopLoss. And the manner in which you presented is the most impressive.

No matter how many times I read about SL, I always get bemused....now after reading the last post, most of my SL got cleared hopefully. I think playing on paper is most essential in this feature.

I may revert back to you in case you don't mind.

yes practise is imp. I too did nt understand how to place sl orders earlier.
Sure feel free to ask. I too am a beginer but.. So dont know how much of a help i can be... Will try my best though