Stop Loss - Options

[mahesh1402]

Hi,
I am new to Options trading. I would like to limit my losses in options via stop loss.

For example if I bought a NIFTY lot (CE) and would like to set stoploss trigger price for squareoff the same, how do I do that ? I am trading with ICICDirect.

Can I mention stoploss when I sell NIFTY lot (CE) or selling NIFTY lot will e considered as fresh NIFTY (CE) sell order and will not be applicable for lot I already bought ?? Kindly help.....

 

[lemondew]

"For example if I bought a NIFTY lot (CE) and would like to set stoploss trigger price for squareoff the same, how do I do that ? I am trading with ICICDirect."

Enter a sell order for CE with SL trigger price and price. Keep a gap 3 points between trigger price and price so that the SL is triggered even if the market runs away or alternatively place a SL with market order.

" Can I mention stoploss when I sell NIFTY lot (CE) or selling NIFTY lot will e considered as fresh NIFTY (CE) sell order and will not be applicable for lot I already bought ??"
Selling after buying will square your position.

Hi,
I am new to Options trading. I would like to limit my losses in options via stop loss.

For example if I bought a NIFTY lot (CE) and would like to set stoploss trigger price for squareoff the same, how do I do that ? I am trading with ICICDirect.

Can I mention stoploss when I sell NIFTY lot (CE) or selling NIFTY lot will e considered as fresh NIFTY (CE) sell order and will not be applicable for lot I already bought ?? Kindly help.....

 

[mahesh1402]

Thanks a lot lemondew. That makes it clear.

So, e.g. If I bought BANKNIFTY lot CE 18700 @ Rs. 400 and now I want to sell it at higher price say Rs 450 but I want to limit my loss if it drags below Rs 375 then I need to place a BANKNIFTY sell order for CE 18700 with limit price of Rs 450 and stop loss trigger price at Rs 375. is that correct ?

 

[lemondew]

No in this case you place 2 orders.

1) Sell order limit price Rs 450
2) Sell order SL trigger 375 price 373

Thanks a lot lemondew. That makes it clear.

So, e.g. If I bought BANKNIFTY lot CE 18700 @ Rs. 400 and now I want to sell it at higher price say Rs 450 but I want to limit my loss if it drags below Rs 375 then I need to place a BANKNIFTY sell order for CE 18700 with limit price of Rs 450 and stop loss trigger price at Rs 375. is that correct ?