Big doubt on short selling

Please help, I did intraday short sell 2-3 shares so what happened is for eg today i short sell apollo hospital @₹2111.50 i place order at this price and my target was @₹2107.50 but when i placed the order it executed @2114.50 which was current market price (CMP) i did limit order not the market order but i dont know how it got placed ₹4 earlier, i faced loss due to this problem my broker is angel broking, please help me here.

You placed wrong order type.
“Limit” order imply worst prices you can take.
So when you put in “limit” sell @ 2111.50. It means I want to sell at 2111.50 or better and not below 2111.50.
As someone was willing to buy even at 2114.5. Exchange filled the order at that better price.

If CMP is 2110. and then you put Limit sell of 2111.50, then your order will remain pending till somebody offers to buy at 2111.50.

In your case, The order type you wanted to use was “Stop” order with trigger at 2111.50

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If you are trying to sell at a certain level only, try ‘SL’ order type with ‘trigger’ and ‘price’ as the same; in this case 2111.5. so the order will not be triggered until the LTP reach 2111.5. Hope that helps

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Thnku so much sir, really it helped me.

Hey thnku so much for helping me

Sir as u said i did the same yesterday i short tataelexsi 90 shares with SL type but when it reached the price it didn’t executed and fall till there where i have to book my profit so i have to cancel that order, i don’t know y it showed pending btw my broker is angel broking.

Because you put in wrong order type as suggested by Rejeesh!
There are two order types SL & SL-M.
In SL-M you just put in trigger price. When this trigger is breached your order gets executed as Market order. So execution is guaranteed.

But you put in SL order which has both Trigger and Limit prices as input. And as suggested by Mathew you put in same values in both fields. So what happened was that as soon as your trigger price was breached the order was activated as Limit order of same price.
But even before your order could be filled the price went below your limit price. And as your order was limit order, it remained pending rather than being executed. Had there been pullback to your price, that order would have certainly got executed.

  1. Always use SL-M order in case of exiting the position. Why? you think of the reason!!
  2. Always keep some distance between trigger & Limit price in case of entering new position. So that order will get executed a tick or 2 away from your price but will definitely get triggered.

Yes sir point second was my problem solution and thnks for the helping se :slightly_smiling_face:

Yeah, during rapid price moves this could be a problem, mostly for highly liquid instruments under normal conditions it will work well. And most often the price doesn’t just fall on a straight line, it come back up too hence opening a window for the limit price to get execution even after breaching the price and falling. Between SL and SL-M you can choose based on your priority - price or execution. If you want to ensure your order is filled you need to be flexible on the price and if you are frim on a specific on price you cant be sure that the order is filled. Sorry for not sharing the nuances in my earlier response.

The solution however is (as suggested by maddy) to keep the trigger price (slightly) away from the limit price.

Hope you finally found what you were looking for, good luck and happy trading!

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Yes sir it helped me and this knowledge is will remain with me for life time and thnku sir for sharing knowledge and helping me.

There is confusion in ur statement. If u short sell executed at 2114 , instead of 2111 it is 3 rupees extra advantage for you.

Instead of selling at a lower price u sold at higher price?

He is talking about Breakout style trading. Where we use SL orders to enter.
If LTP is 100, BO trader want to sell at 95 and not above that.
So there is no confusion in his statement!!!
:rofl: :rofl:

@maddy_Des ok thx now got it. Lets say at 95 a strong resistance is broken and hence after the major Breakout he does not want to short sell

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No No.

If LTP is at 100. And 95 is a strong support.
If a Breakout trader wants to enter on breakout but without waiting for candle end or confirmation then she will put in the SL order of trigger at <94.95. So as soon as level is broken her order will get triggered, executed at market or limit and she will be in short position.

Many traders wait for candle end or confirmation or pullback etc. This mechanism is not useful for them.

So 95 is strong resistance. Resistance already broken once and stock is now at 100.

Short seller keeps SL at 94.5. That means he is waitng for a pullback below resistance level of 95. He expects that if stock moves below the 95 resistance level it will fall further. The idea is once a resistance is broken that resistance level now becomes support viz. 95

If stock comes down again below 95 now that new support level broken

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I edited small mistake in my earlier reply.

What has happened earlier is of not much importance for this discussion.

This is also not important.

Only statements important are:

Rather going into specificities of PA, it is simple to say that in BO strategy, trader want to short on breakdown below certain level and buy above breakout of certain level.