Hi NoviceStockTrader,
Thank you for the clarification. I want some more.
Today I had had an overnight BANKNIFTY01DEC1618400PE at an average of Rs 200. When price reached Rs 230, I had placed a SL order for the following price.
Trigger price: 225.05
Limit price: 225.00
At about 10:43 A.M. price moved down below 225 and my order did not get filled. I had to chase the price and I placed another order with the following price.
Trigger price: 211.00
Limit price: 210.00
Guess what, at 10:46 again this order also did not get filled. Luckily for me the price moved up a little and I got out at 212. What if the price increased very fast and never returned.
I believe either something is wrong with the Broker or with the Web Terminal I am using.
Is it normal with you guys. Please clarify, I am seriously thinking of changing my broker.
Hello Pannet, NoviceStocktrader and others
I did notice that this is quite old question but still answering it because it is one of the common problem for a newcomer. Each broker terminal is different in UI. Some provide additional drop-down but the actual mechanism at the exchange relies and works on two prices.
Chances are that there was nothing wrong with the broker terminal on that day. You just did not understand how it is meant to work.
Limit Price and Trigger Price work against each other like two opposite arms of a scissor.
One another reason for reply is that the statement made by NoviceStockTrader in his Post
Link to post
Hi NoviceStockTrader,
.... Even if the bid/ask hits your trigger then order will be placed. ....
is not entirely correct
I shall attempt to explain the logic behind order filling and also rectifying the wrong assertion made by NoviceTrader.
Lets assume you bought some stock at 200 and its LTP is now at 230. Now, you wish to place the stop loss at 220.
Since we already bought, we would have to place a sell order at 220. For it to be classified as stop loss order, you
*MUST* provide
a trigger price. Providing Limit price is optional.
But Trigger price is MUST.
Whenever the Trigger price is used, Order Status must cycle thru "
Pending" to "
Triggered" before it can reach "
Executed". The order
cannot go directly from "
Pending" to "
Executed"
In your example case, before 10:43 A.M., your order was "Pending" and yet to be "Triggered"
Then, at about 10:43 A.M., LTP or Bid moved below 225.05 causing the order to reach "Triggered" status. But, It did not get executed because the limit price prevented it because LTP/Bid was already below 225.
You had set limit to 225 so it would sell it only at or above 225 but LTP/Bid was already below 225. It would place price of 225
with your quantity in the Ask queue and wait until it is executed.
Same thing was repeated at 10:46 A.M. for price pair 211 and 210. Price jumped from above 211 to below 210 in very short span of time.
In highly volatile scrips or low liquidity scenarios, it is quite common for order to get triggered but not executed. If it happens frequently, either increase the gap between the limit and the trigger or do not provide limit price at all.
Whenever the limit price is not provided in a stop loss order, the order will be converted into market order and executed immediately upon trigger as long as there is some other counter trader.