Is stoploss in Bracket order - SL or SLM?

General
1

Hi, I am new to this forum and stock.

My doubt is regarding stop-loss in bracket order(BO). What is the nature of stop loss technique in BO? Is it normal SL or SLM?

Is there a chance that stoploss will not trigger in case of nifty futures?

Thank You.

2

As per my knowledge Stop loss which we placed using Bracket order must be SL-M.

Because if it SL order it must ask us limit price to execute when we place an order but I did not saw an option like that and If it SL order and it not get executed when triggered along with us broker will also be in trouble because Broker is taking risk by giving us an option like Bracket order for their Business.

Then it must be SL-M order.

Note : I did not use Bracket/Cover Orders.

3

Thanks for replying.

I did used bracket order today and i can confirm you that it is SL-M.

In cover order we are entering trigger value. So it will also be SL-M. Correct me if i am wrong.

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4

Yes, the stoploss order in a Bracket order is an SLM( Stoploss Market) order. For an SLM order, you only enter the trigger price. When the trigger price is reached, a market order is then sent to the exchange.
So if you place a Sell SLM order with trigger price at 100 when the stock is trading at 100, then if the stock price reaches or goes below 100, your SLM order is triggered and a Sell Market order is sent to the exchange.

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5

i am a regular day trader from past 3 years…today i have experienced BO with SL (were you cant change the trigger price after execution & trigger & limit price is auto filled by zerodha which is again very huge differences)

Have you experienced the same?

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6

Hey @MAC

Check out this post. The exit leg of BOs have been changed from SL-M to SL.