totally confused in slt and limit prise

[mandal]

if XYZ share value come below 100 i would buy it
if ABC share value goes above 100 i would buy it

please give what should my order parameters in both cases

 

[amit yadav]

if XYZ share value come below 100 i would buy it
if ABC share value goes above 100 i would buy it

please give what should my order parameters in both cases

Hi..!! Mandal,
It would have been more convenient to reply if you would have mentioned your trading platform.
Anywazz...in first case of xyz you need to use buying Limit order with desired limit price.
I hope this helps...!!
I think seniors dint reply to your query cozzz...its weekend, soon you will get more replies...

 

[rigel]

If the price is at 100 and you wish to buy it, there are 3 methods for entry.

1. So in the rising market, if you wish to enter the market you can hit market order and you will be in around 100, or 101 or 102, depending on the market and how liquid that market is ie. in less liquid markets you will encounter slippage.

2. However if you wish to enter the market when price reaches 105, that you place a stop order at 105 and when price crosses that, your order is filled, in this case you are waiting for the market to prove itself, that there is buying momentum.

3. If you are not happy to chase the market but think there is still more upside, then you wait for retracement below 100 to say 95 and then wish to enter, in this case you place a limit order at 95, when the market hits that or 94 you will be filled. Ofcourse the risk here is that market may just keep rising from 100 without retracement.

Hope this helps

 

[rajeabc]

if XYZ share value come below 100 i would buy it

In this case you can put a limit buy order to buy @99.99 (for example) when share is trading at ,say,102(ex). So when stock price will hit 99.99 your order will get executed.

if ABC share value goes above 100 i would buy it(here buy is not same as closing position I assume)
Neither Limit Price nor stl will apply here. Ex: say Stock is trading at 99.99 and you want to buy once it crosses 100 then you will have to keep check and do that. Suppose you place a limit order @ 100.10 (you want to buy at 100.10) your order will get executed asap as CMP is lower than your quoted (limit) price.

please give what should my order parameters in both cases

So what is Limit Order.

Limit price is the max price you are willing to pay to buy a stock. So if a stock is trading @ X then if you put a limit order @Y then
If (Y > X) your order will get executed/activated(if seller is there) asap.
if (Y<X) then it will wait till price come down to Y and then your order will get activated.

Now then what is a Stop Loss Order:
This concept comes in to close(square off) your position automatically once price reaches your STP Loss price.
Lets take few examples to make it clear:

1: You have a position open and stock is trading @ Y price. Now suppose it start going down and your want to close the position once price reaches @ Stp Loss Price. This can be done in two ways.

1: Keep watching move of your stock and if it hits @stp Loss price close this.

2:you can place a stp loss (price) in your position and when/if stock hits stp loss price your position will be closed.

So stop loss is used to close your position in a case stock price start moving in opposite direction of what you would have thought and you start making loss. To limit your loss you put a stp loss

Hope this helps.

 

[mandal]

Hi..!! Mandal,
It would have been more convenient to reply if you would have mentioned your trading platform.
Anywazz...in first case of xyz you need to use buying Limit order with desired limit price.
I hope this helps...!!
I think seniors dint reply to your query cozzz...its weekend, soon you will get more replies...

i am just new comer