@nithin
Today, BO orders were creating SL_L order instead of SL-M order (for the stop loss). Not sure what was the issue.
Please confirm.
Stop loss should be always SL=M. else if price jumps wont be able to get out and have to book higher losses. Lets wait for teams response
Hey @tarakesh,
Until yesterday in Bracket Orders (BO), the exit leg was an SL-M order. However, new exchange mandates require the broker to have market protection percentage for all Algo orders. BO is considered as an Algo order.
Due to this, the exit leg of BO has been changed to Stop Loss (SL) instead of SL-M (stop loss market)
Click here for more details.
Will it change for Cover Orders as well or is only for BO?
This change of BO Stop loss order to SL came as an unexpected surprise.
SL is a dangerous order type. Stops should always be Market order to make sure the position is exited immediately and not left hanging with a Limit. SL-M took care of this nicely.
Since yesterday i’m seeing SL for the BO exit leg. But so far the stops are working fine. The position are getting exited immediately with a minor slippage as usual for MKT orders.
Hope this change works for the better . Stops loss orders are crucial for any trade so its not a wise idea to mess with it. SL-M used to work fine overall so lets hope SL doesn’t disappoints.
@Kshiteesh_Saralaya One more thing. In SL order window for the BO exit legs the trigger price can be modified as usual. But the Price on the left can’t be modified. I’ve tried changing it but the system seems to be placing its own value.
From what i’ve read this is the RMS Market Protection Price which is set to a certain % as per its policy.
How to be sure that this won’t increase the loss. Because this RMS Price value is set far away from the actual Stop/Trigger price. Like several points away and this gets a bit unnerving at times.
What if the Trigger price is hit and the position is still not being exited due to that Far away Limit which is set by the RMS ??
Yes so far this didn’t occurred but i’m not sure that this behaviour will continue. Of course i’m only concerned about High liquid stocks when it comes to BO but still that RMS value is really far away.
Not sure which brain in the exchange decided against the SL-M order. What if the price goes through the limit order ?
It defies the very logic of stop loss. It seems to be some definition (algo-trader) mis-match. Hope the common sense prevails (Or is there any thing I am missing totally).
1 Like
Exactly my thought. The same brain that is always trying to make the life of a retail trader difficult day by day ( cough… cough… F/O lot size… cough… cough ).
I mean seriously what a stupid move to change SL-M to SL. SL-M was working perfectly and it makes no sense to change something that is not broken.
Thank you for the information. 
1 Like
One more thing. In SL order window for the BO exit legs the trigger price can be modified as usual. But the Price on the left can’t be modified. I’ve tried changing it but the system seems to be placing its own value.
Whenever you modify your trigger, the SL price will also change and it will be a set % of the LTP. (3% as of now). Ex - if you’ve bought a share at 1000 with the initial trigger as 980, the SL price would by default set to 970. Now lets say the price moves to 1020 and you edit your trigger to 1000, then the SL price will be 989 i.e 1020- 3%
Same will be applied if you modify the trigger when the price moves down.
Once your trigger price is hit the order will get executed at the next best bid/offer, so essentially its similar to SL-M in this aspect, however, the execution will be restricted to the range between price and trigger price.
For the end user, this change won’t make much of a difference. The only thing to be aware of is when you are placing a BO initially, and the trigger is below the 3% market price protection percentage, the trigger will be just 1 tick above the price. So one has to be aware and modify the trigger.
1 Like
Ok. So now its clear. Thank you for clarifying.
What if the bid/offer is beyond the limit (theoretically possible) ?
Hey @tarakesh
Our RMS team allows BO only on liquid scrips, which have tight spreads. So, this scenario happening is unlikely.
In the off case that this does happen, then there would be an open order at the SL price. You’d have to wait for a bid/offer at your SL price. A quicker alternative to exit in this scenario would be to change your trigger so that the SL would change based on the Market protection percentage on the LTP.
I see that as a work around for illogical order of Exhange. If the benefit is almost nil, they could have continued with SL-M order without making it complex. Not sure, how is this implemented (OCO, one cancel other orders) in the US exchanges.
The market protection percentage has been increased to 20%. In essence, it is as good as an SL-M order.
The support website article is not updated to reflect this. Is this 20% applies to specific kind of instruments or across the board?
On all BO enabled scrips, also if 20% is beyond circuit limits then stop loss limit will sit at circuit limits.