SL triggered, Trade not executed

[mave_rick]

Hi all,

This is query regarding the Stop Loss triggered. I am using 5paisa TTadv.

The issue is sometimes, when my Stop Loss gets triggered, the trade is not executed. It goes away and against my direction of trade (as it would when a SL gets triggered.) however the trade is not executed.

To illustrate my point, say in DLF, I have gone long @ 275, SL @ 273.40 and Trigger Price @ 273.50. When the price reaches 273.50, my SL gets triggered. However, the trade does not get executed @ 273.40. It goes much below that.

So instead losing 1.6 points in my trade and I lose more than that depending on where I square off manually.

This is having a adverse affect on my trading account and trading psychology. I cant seem to trade properly after this happens.

1. I want to know from the people in the Traderji forum if anyone else has experience this issue with 5paisa or any other brokers?

2. Is there something I am doing or any fault with the software?

3. Is there anyway I can overcome this things?

4. If it is normal and happens sometimes, does people also take into account this type of situation while trading and treat it as part and parcel of the trading.

5. Any other suggestion which help me overcome this things or help me trade normally after this things happens.

 

[simple_trader]

Hi all,

This is query regarding the Stop Loss triggered. I am using 5paisa TTadv.

The issue is sometimes, when my Stop Loss gets triggered, the trade is not executed. It goes away and against my direction of trade (as it would when a SL gets triggered.) however the trade is not executed.

To illustrate my point, say in DLF, I have gone long @ 275, SL @ 273.40 and Trigger Price @ 273.50. When the price reaches 273.50, my SL gets triggered. However, the trade does not get executed @ 273.40. It goes much below that.

So instead losing 1.6 points in my trade and I lose more than that depending on where I square off manually.

This is having a adverse affect on my trading account and trading psychology. I cant seem to trade properly after this happens.

1. I want to know from the people in the Traderji forum if anyone else has experience this issue with 5paisa or any other brokers?

2. Is there something I am doing or any fault with the software?

3. Is there anyway I can overcome this things?

4. If it is normal and happens sometimes, does people also take into account this type of situation while trading and treat it as part and parcel of the trading.

5. Any other suggestion which help me overcome this things or help me trade normally after this things happens.

Does it happen daily? Some unfair practices may be there! Was it a future position or cash?

 

[mave_rick]

Hi simple_trader,

Thanks for the reply. It does not happen daily. It happens once in a while. I trade in TATASTEEL,DLF,etc and only in Cash. It happens with different scrips and happens randomly to find any pattern.

I hope this information helps.

I have talked with 5paisa Customer Care, they say, it happens sometimes and at that time you have to square it off manually. I can do it manually, the problem is that, sometimes I have to go away from the terminal and at that time if it hits my SL and goes against my position by long way (though it did not happen till now, touch wood) and it will certainly hurt me by good measure.

 

[loke4300]

Hi all,

This is query regarding the Stop Loss triggered. I am using 5paisa TTadv.

The issue is sometimes, when my Stop Loss gets triggered, the trade is not executed. It goes away and against my direction of trade (as it would when a SL gets triggered.) however the trade is not executed.

To illustrate my point, say in DLF, I have gone long @ 275, SL @ 273.40 and Trigger Price @ 273.50. When the price reaches 273.50, my SL gets triggered. However, the trade does not get executed @ 273.40. It goes much below that.

This should not happen unless you use the combination of Trigger price with Market order.

If you are using Trigger Price with Limit Price - you are specifically stating for the order be executed at your quote only.

check with your RM/broker at the earliest.

 

[trader.trends]

Hi all,

This is query regarding the Stop Loss triggered. I am using 5paisa TTadv.

The issue is sometimes, when my Stop Loss gets triggered, the trade is not executed. It goes away and against my direction of trade (as it would when a SL gets triggered.) however the trade is not executed.

To illustrate my point, say in DLF, I have gone long @ 275, SL @ 273.40 and Trigger Price @ 273.50. When the price reaches 273.50, my SL gets triggered. However, the trade does not get executed @ 273.40. It goes much below that.

So instead losing 1.6 points in my trade and I lose more than that depending on where I square off manually.

This is having a adverse affect on my trading account and trading psychology. I cant seem to trade properly after this happens.

1. I want to know from the people in the Traderji forum if anyone else has experience this issue with 5paisa or any other brokers?

2. Is there something I am doing or any fault with the software?

3. Is there anyway I can overcome this things?

4. If it is normal and happens sometimes, does people also take into account this type of situation while trading and treat it as part and parcel of the trading.

5. Any other suggestion which help me overcome this things or help me trade normally after this things happens.

mave_rick

You have to understand how the SL mechanism works. You have a trigger at 237.50 and sell rate at 237.40. The moment someone sells at 237.50 your order enters the system. Now it becomes a price order at sell 237.40. If the buyer is at 237 and someone who had a trigger too at 237.50 but had put a mkt order instead of a price order, then the next trade will happen at 237 and your order will have to wait till there is a buyer at 237.40. It may or may not happen.

There are two alternatives you can think of, one have a trigger at 237.50 and a market order alternatively have a trigger at 237.50 and have an order at 236.50. That is a wider margin than the 10 paisa margin that you have given but stands better chance of execution and you will get a price between 236.50 and anything above that where a buyer is located.
If you are trading a high volume stock or Nifty then putting a market order does not carry much risk as enough liquidity will ensure that you get a price around your trigger. In low volume stocks this can be dicey. But not putting a market order in a low volume stock can be equally dicey as you may be left holding something and it can go along all the way to the circuit giving you no chance to exit. No exaggeration. It happens everyday in the market. Hope that helps.

 

[simple_trader]

Hi simple_trader,

Thanks for the reply. It does not happen daily. It happens once in a while. I trade in TATASTEEL,DLF,etc and only in Cash. It happens with different scrips and happens randomly to find any pattern.

I hope this information helps.

I have talked with 5paisa Customer Care, they say, it happens sometimes and at that time you have to square it off manually. I can do it manually, the problem is that, sometimes I have to go away from the terminal and at that time if it hits my SL and goes against my position by long way (though it did not happen till now, touch wood) and it will certainly hurt me by good measure.

OK. I guess then it happens sometime in less liquid stocks. But DLF has good liquidity, so I am wondering!

I personally trade in liquid stock futures and keep SL trigger and limit order at the same price always. Does not find much skipping of SL.

Do not recommend to use market order with trigger. My personal opinion.

 

[mave_rick]

Hi all,
It seems all your suggestions are pointing to the same direction. :thumb:

So, as simple_trader has also mentioned, I would like other people in the Traderji Forum (more the better) including all of you who have already replied (loke4300, trader.trends), to provide in the thread, which is the best way of putting the SL. Whether its SL with Market order or SL with Limit Price for highly liquid stocks? It could be your personal opinion but honestly it does count and will help me to determine which way to go.

Currently I am using SL with Limit Price. I hope all of you will enrich this thread with your priceless thoughts and inputs.
:thumb:

 

[MarketRider]

Hi all,
It seems all your suggestions are pointing to the same direction. :thumb:

So, as simple_trader has also mentioned, I would like other people in the Traderji Forum (more the better) including all of you who have already replied (loke4300, trader.trends), to provide in the thread, which is the best way of putting the SL. Whether its SL with Market order or SL with Limit Price for highly liquid stocks? It could be your personal opinion but honestly it does count and will help me to determine which way to go.

Currently I am using SL with Limit Price. I hope all of you will enrich this thread with your priceless thoughts and inputs.
:thumb:

hey, trends has answered this query rightly....say your SL is 235..then limit price should be around 234.5 etc...your trade will be executed between these two prices....I mean give a wider margin than your 0.10 margin..I also trade in IIFL (5paisa) , but never had such a problem due to wider margin...infact IIFL is a good brokerage house, absolutely no problems with IIFL....:thumb:

 

[savkar]

I think there seems to be more clarification on the red quoted statement in bold coz it can be confusing.

hey, trends has answered this query rightly....say your SL is 235..then limit price should be around 234.5 etc...your trade will be executed between these two prices....I mean give a wider margin than your 0.10 margin..I also trade in IIFL (5paisa) , but never had such a problem due to wider margin...infact IIFL is a good brokerage house, absolutely no problems with IIFL....:thumb:

Let me give an example to clear it
Suppose a sell order is placed with following values

SL=234.5
TP(trigger price)=235


Now lets assume CMP (current market price) is 240.
Your order is passive and nothing happens

suppose CMP becomes 234.9
Your order is simply converted permanently into a pure limit order. there is no selling yet

now assume price goes up from 234.9 to 237
Your order is passive and nothing happens

now the moment the price goes below 234.5
a sell is triggered and the best price match is found to sell the stock.
now you stock will be sold at any price below 234.5
if liquidity is bad and if there is a buyer at 215, then your stock will be sold at 215


the reason for TP is to cushion those sudden up and downs which happen from time to time.

SL and TP are not 2 ranges in which the stock is sold.

the best way to remember this is

TP is the price at which SL order becomes active. it does not mean a buy or sell will happen. with high liquid stock, usually the order is triggered near TP

coming back to the original issue, mayb 5 paisa is sending the order with a lil delay to exchange which might be causing a problem.

while buy or sell there is an option called GTD or IOC.
GTD=good to day
IOC=immediate or cancel

i think your order might be an IOC, try with GTD

 

[shanki99]

I think there seems to be more clarification on the red quoted statement in bold coz it can be confusing.

Let me give an example to clear it
Suppose a sell order is placed with following values

SL=234.5
TP(trigger price)=235


Now lets assume CMP (current market price) is 240.
Your order is passive and nothing happens

suppose CMP becomes 234.9
Your order is simply converted permanently into a pure limit order. there is no selling yet

now assume price goes up from 234.9 to 237
Your order is passive and nothing happens

now the moment the price goes below 234.5
a sell is triggered and the best price match is found to sell the stock.
now you stock will be sold at any price below 234.5
if liquidity is bad and if there is a buyer at 215, then your stock will be sold at 215

Are u sure what have u written above is correct???

Just confirm it once again

My understanding is that Best price is taken between the Trigger price and the Limit price, both inclusive (in case of Sell)

But u have said the other way ("now you stock will be sold at any price below 234.5")