Zerodha....

[chandra1]

[....]

Difference between SL-L and SL-M is as below:
Assuming you have bought Nifty @ 5100...
You can place a SL-L (Stop Loss-Limit) with trigger at 5080 and Limit Price at 5076. Hence if the price comes to 5080, a sell order is sent to the exchange at 5076 and depending on the best buy the order gets executed. However, if the price of Nifty falls from 5080 to 5075 in one tick, although your trigger is activated the Stop loss does not get executed as the limit sell is at 5076.
However, if you place a SL-M (Stop Loss Market) you will be allowed to enter only the Trigger Price. Assuming you put the trigger at 5080, the moment Nifty hits 5080, it gets sold at whatever is the "Best Buy" Price in the market.

@ Zerodha

1. So, one can conclude that it is better to place SL-M than SL-L.
And even one wants to place SL-L order, then he should place SL-M order instead of SL-L order and put the trigger price equal to what we want to put in limit price in SL-L. Am I right in my conclusion.

2. What will happen if, suppose trigger price is 5049 and Nifty falls from 5050 to 5048 in one tick. The SL-M will get executed or not.

3. Can we change/modify SL-L or SL-M or trigger price before the activation of trigger price placed in the order. What will be the procedure. How to do it.

Thanks

 

[Zerodha]

Answers in RED

1. So, one can conclude that it is better to place SL-M than SL-L.
And even one wants to place SL-L order, then he should place SL-M order instead of SL-L order and put the trigger price equal to what we want to put in limit price in SL-L. Am I right in my conclusion.
Yes definitely better. Stop losses are most critical when market gaps and not in flat markets.. When market gaps, you need to exit it as fast as possible, because usually the trend continues..

2. What will happen if, suppose trigger price is 5049 and Nifty falls from 5050 to 5048 in one tick. The SL-M will get executed or not.
Yes SL-M will get executed, it will get sold at the best available price below 5049, in this case at 5048

3. Can we change/modify SL-L or SL-M or trigger price before the activation of trigger price placed in the order. What will be the procedure. How to do it.

Once you have placed the Stop loss order, go to order book.. you will get two options Open orders and completed orders.. if you are not seeing these 2 sub-boxes in order book, press ctrl + 3 ... Click on the opne SL order and click on the button modify at the bottom of the order book page

 

[chandra1]

What is the difference between Open Order and Pending Order.
You mean we can modify only open order and not pending order.
Thanks

 

[Zerodha]

What is the difference between Open Order and Pending Order.
You mean we can modify only open order and not pending order.
Thanks

Both means the same.. my typo...

I meant open and completed orders..

 

[TheDreamer]

@ Zerodha

1. So, one can conclude that it is better to place SL-M than SL-L.
And even one wants to place SL-L order, then he should place SL-M order instead of SL-L order and put the trigger price equal to what we want to put in limit price in SL-L. Am I right in my conclusion.

2. What will happen if, suppose trigger price is 5049 and Nifty falls from 5050 to 5048 in one tick. The SL-M will get executed or not.

3. Can we change/modify SL-L or SL-M or trigger price before the activation of trigger price placed in the order. What will be the procedure. How to do it.

Thanks

Answers in RED

1. So, one can conclude that it is better to place SL-M than SL-L.
And even one wants to place SL-L order, then he should place SL-M order instead of SL-L order and put the trigger price equal to what we want to put in limit price in SL-L. Am I right in my conclusion.
Yes definitely better. Stop losses are most critical when market gaps and not in flat markets.. When market gaps, you need to exit it as fast as possible, because usually the trend continues..

2. What will happen if, suppose trigger price is 5049 and Nifty falls from 5050 to 5048 in one tick. The SL-M will get executed or not.
Yes SL-M will get executed, it will get sold at the best available price below 5049, in this case at 5048

3. Can we change/modify SL-L or SL-M or trigger price before the activation of trigger price placed in the order. What will be the procedure. How to do it.

Once you have placed the Stop loss order, go to order book.. you will get two options Open orders and completed orders.. if you are not seeing these 2 sub-boxes in order book, press ctrl + 3 ... Click on the opne SL order and click on the button modify at the bottom of the order book page

One request... Don't put stop loss-market order in your system... Rather keep 5 points (if trading in Nifty futures) difference between your stop-loss trigger and limit orders. The market is too shallow these days and SL-M order may hit you so badly that you may never be able to trade again...

One recent example... On 20th April, 2012 market was comfortably trading above 5300... many kept s/l at 5300... around 2:20 p.m. market zoomed down to 5000 low (in 5-10 ticks)... but ended the day at 5304... think about this... your sl-m could give you loss of Rs. 10,000/lot in extreme case.... If trading with 5 lots, it's Rs. 50,000 loss... If trading with 10 lots, the loss will wipe out the whole trading capital of some of the small traders among us...

 

[sumosanammain]

One request... Don't put stop loss-market order in your system... Rather keep 5 points (if trading in Nifty futures) difference between your stop-loss trigger and limit orders. The market is too shallow these days and SL-M order may hit you so badly that you may never be able to trade again...

One recent example... On 20th April, 2012 market was comfortably trading above 5300... many kept s/l at 5300... around 2:20 p.m. market zoomed down to 5000 low (in 5-10 ticks)... but ended the day at 5304... think about this... your sl-m could give you loss of Rs. 10,000/lot in extreme case.... If trading with 5 lots, it's Rs. 50,000 loss... If trading with 10 lots, the loss will wipe out the whole trading capital of some of the small traders among us...

I would suggest 25 points as a fail safe

 

[TheDreamer]

... ... ...

3. Can we change/modify SL-L or SL-M or trigger price before the activation of trigger price placed in the order. What will be the procedure. How to do it.

Thanks

You can change your sl-l or sl-m order as long as it's not fully complete... I have done it several times...

say, you have kept 10 lots NF short at SL-M of 4990... If 5 lots get executed, you can immediately cancel the order and execute the rest 5 at 4995 or higher...

 

[TheDreamer]

I would suggest 25 points as a fail safe

The big trader you are, 50 points might not be your stop-loss...

 

[sumosanammain]

The big trader you are, 50 points might not be your stop-loss...

Didnt quite understand your post.

If you put in a 25 point sl trigger, and if it triggers, 2 times a year, I think its good insurance.

I have seen 5 point triggers screwed into the ground, turning into pending orders, with the trader freezing in fear, not able to take a decision on what to do.

Still, if I have made a mistake in recommending a fail safe, request traders to consider it my eccentricity and ignore this insane traders post.

 

[TheDreamer]

Didnt quite understand your post.

If you put in a 25 point sl trigger, and if it triggers, 2 times a year, I think its good insurance.

I have seen 5 point triggers screwed into the ground, turning into pending orders, with the trader freezing in fear, not able to take a decision on what to do.

Still, if I have made a mistake in recommending a fail safe, request traders to consider it my eccentricity and ignore this insane traders post.

AFAIK, if stop-loss gets triggered, but the whole order doesn't get executed, it remains as open order and one can change it at will...

Now 25 points remain the profit target for small-time intraday traders like me... How can they dare to keep it as difference between sl-trigger and price!!!

25 points might be FAILSAFE for you but FAILSURE for traders like me... Kuch Samjha karo yaar!!!