need help with stop loss please...

hi,

suppose i want to short intra day using a pre market order for the following example, how would i do it?

previous close - 100

i want to short if it goes below 99 but not below 97.50.

what would be my limit price and stop loss?

The reason being if it opens with a gap down of 4 - 5% and my short order gets filled at that price my risk would increase several fold.

can i place the order with the above condition that the order be executed only within that range?

thanx in advance and a very happy id to all muslims on the forum...

Your order wouldn't execute if you placed a limit order for 48 (it doesnt matter if it goes to 54 or 60 or whatever). Since it didnt hit 48 your buy order isnt executed

prabinbv

i have tried that with sharekhan...it doesnt accept the order. if ur limit price is 48 ur stop loss should be the previous close or higher.

i guess that applies for my previous query too. it wont work...

i am talking of after market orders here.

thanx

This is to inform you that a ‘Stop Limit’ order is made if you want to minimize losses.

For e.g. If you have built up position, and the prices of these shares start falling you would want a safety value to unload your stocks. What you can do in such cases is place a stop loss order. A stop loss order is independent of any existing orders that you may have.

A Stop Limit order can be a limit or a market order. Such an order gets released to the exchange once the trigger rate is reached.

Trigger Rate:

Trigger rate is the rate at which you want to activate your Stop Limit order. Till the time trigger rate is reached, your order is stored in Special Attribute Order Book & once the same is reached, your limit or market order is generated into the Regular Lot Book.

Kindly note that there are two types of order books i.e. Regular Lot order book & Special Attribute order book.
Regular Lot order book stores all normal Limit & Market orders, while in Special Attribute order book all orders with special attributes like Disclosed Quantity, Stop Limits are stored.

For e.g. If you have bought 100 shares of Reliance industries @ Rs.300/- & you want to cut down your losses to the extent of Rs.270/- i.e. if Reliance industries reaches Rs.270/- you want to sell them off.

In this case you have to place orders in the following manners:

1. Click Stop Limit Order Box.
2. In the trigger rate specify Rs.275/-.
3. At the same time you have to place a limit rate of Rs 270/-

OR

2. In the trigger rate specify Rs 270.
3. Instead of specifying limit you can select market.


Execution:

If you have specified a limit rate, & once the trigger of Rs 275 is reached, your limit order will be generated into the Regular Lot order book & your trade will be executed at any rate between Rs 275 to Rs 270.

If you have specified a market rate & once the trigger of Rs.270/- is reached, your market order will be generated into the Regular Lot order book.