How does a stop loss trigger work?

#71
stoploss is used to "stop loss" -to cut the loses.you can use a pivot calculator for simple stop loss calculation for delivery based trading and intraday stop loss depends on how much you are ready to lose - imean the maximum amount you are ready to lose- it also depends on the price movements of the scrip for that particular day

in your case - if you asked the broker to put a stop loss at 123 =it means that the broker placed and order for selling the stock at one condition -if it breaches a tigger price. so for a stop loss sell order for 123 the trigger will be slightly higher. lets say that the stock is quoting at 125.you place a stop loss sell order at 123 with a trigger price of say 123.25.when the price reaches 123.25 or below the stop loss sell order get activated or triggered.the order will be placed as a sell order for 123.but if the price starts moving up say from 123.10 to 124 the order wont be excecuted.
Dear Friends at Traderji,

Good day to everyone of you, I have around Rs.1,000,000.00 (ten Lacs) and want to invest I am an NRI and currently the money is in saving account in one of the banks in India. could anyone help me how I can invest this amount. The thing is that I intend to buy a shop or a flat but I may use about 2-3 lacs from this amount. I do not have much knowledge about trading but would like to learn if anyone will help me dear.

Regards,
Dav
 

stock72

Well-Known Member
#72
Dear Friends at Traderji,

Good day to everyone of you, I have around Rs.1,000,000.00 (ten Lacs) and want to invest I am an NRI and currently the money is in saving account in one of the banks in India. could anyone help me how I can invest this amount. The thing is that I intend to buy a shop or a flat but I may use about 2-3 lacs from this amount. I do not have much knowledge about trading but would like to learn if anyone will help me dear.

Regards,
Dav
1) How you will buy a flat for 2-3 lakhs ?
2) what type of returns you expect and what level of risk you will take ?
3) best thing is buy a ground of land (2400 sqft )for 10 lacks .
 

OHLC

New Member
#73
Hello friends:

This is my first post

I have a question regarding the use of Trigger and Market Prices. I understand the basic concept of Trigger Price and Limit Price. But I have a specific doubt in a particular scenario. Here is my doubt:

Lets say I bought 10 shares at a price of 100. After sometime the share went up to 130. Now I put stop loss sell order with Trigger price at 125 and a limit price at 120. Let us suppose the share dropped to 124 and my order is triggered, that is the order is placed in the queue. Assume someone else also has already placed a buy order of qty 10 at 124.


My first question in this scenario is whether my sell order be executed at 124 or 123 or 122 etc because all these are good prices above 120 for a sell order or will it get executed only when the buy order in the market reaches my limit price sell order of 120.

The reason why I am asking is that many times when the share prices fall rapidly my order gets triggered but the order is not executed because the price falls fast below my limit price.

My second question is whether it is possible to put a range for limits; like in this case how can I put an order which says trigger at 125 and sell my order anywhere between 120 and 125, not necessarily only at 120.

Thanks,
 
#74
Validity = Validity period for your order to remain in the exchange (Generally it is the current day)

Trigger Price = usually used as stoploss price.
Suppose u bought a stock at 100. If price falls u want to sell it at 95 not holding anymore.
Let the stock is now trading around 99. Now if u give sell order at 95 it will be immediately executed at current price of 99. So u have to give sell order with Trigger Price = 95 and Limit Price = 94 (or anything below 95).
Then your order to sell will be triggered in the exchange only if the price falls to 95.

For other terms see : http://www.traderji.com/beginners-guide/29378-please-explain-what-disclosed-qty.html
THANKS:thumb:
 
#75
Hi Traderji members,

Thank you for your invitation.

I introduce myself as a new trader in Indian stocks.

Frankly speaking I have not yet succeeded in my trading business.

Presently I am trading through Integrated India Enterprises.

The problem I am facing is the trading platform which is not providing with advanced charting facility.

Can Traderji members suggest a solution for my problem referred above.

Best regards to all of you an I wish all of you in career

Hariboy Pereira

[email protected]
 
#77
I know this is reply to very old post. I just happen to stumble upon this post recently since I had doubts on stop loss. Thanks for all the member for pouring in their thoughts. It immensely helped me.

Just for benefit of others here is what I will suggest -

In order to understand stop loss concept, once must first try to understand following concepts.
1. Market order - http://www.investopedia.com/terms/m/marketorder.asp

2. Limit order - http://www.investopedia.com/terms/l/limitorder.asp. Look at the nice little video that explains this concept (video is given the link).

3. Stop loss order - http://www.investopedia.com/terms/s/stop-lossorder.asp. Again just have a look at the video that explains this concpet.

Once you are clear with all these terminology. I will suggest you to read post# 31 (http://www.traderji.com/brokers-tra...does-stop-loss-trigger-work-4.html#post148063) by marcus. He had explained this very wonderfully. As his explanation involves number of hidden concepts. So to understand what he is trying to explain first get clear on stuff like market / limit order / LTP.

After going through all this, may be you can go through http://www.zerodha.com/z-connect/blo...s-limit-market (as mentioned by TradeRaid ) and finally I will suggest to read on beautiful article by Alxeander Elder - http://www.tradingpicks.com/stop_loss.htm

Hope this helps you,
Swapnil
 
#78
Last 15 years i am looking for a utility in stock exchange wherein i can place an order where trigger price should be more than my stop loss. I want to place an after market order of a script closing price at 100 rs i want when it touch 109 rupees the system should trigger and my stop loss shroud be than 108 ruppes. But this facility is not provided by any exchange. They dont want retail investor should earn from the market. I
 
#79
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