# Can i use slm order for profit booking

Can someone pls explain if i cn use slm order to book profit

As i see, the diff b/w slm order and a normal order is slm is with the trigger Price. If suppose i bought 100 shares of sbi and put a slm order of 102 and log out of mrkt (wth a 98 slm in place) . Wil it square off position if price reaches 102 ?

No, use limit order for that

Ur second slm will be triggered and executed immediately.

SL (Stop Loss): If you bought a stock at 112 and you want to limit your losses to 102
which is 10 points. So if the markets comeâ€™s against you your order
should ideally get squared off at 102.

SL-M (Stop Loss Market): Now with the same example what if the market crashes and passes your SL of 102 but does not execute can leave your SL order pending? this can
happen if we have sudden fall. So to avoid these situations we use SL-M
and keep a trigger price which is 102. Now even if the markets fall by a
margin the order will get executed 102 or below.

Can you pls also tell what will happen with the slm order of 102 (in my example) , if sbi reaches 102 ?

The second slm (of 98rs) wont get executed and i wil have to cancel it manually, rht ?

Isnt the slm order is like a normal order with a trigger price ? If i place a slm sell order (of102)after buying 100 shares, will my current 100 shares nt be sold if price reaches 102 ?

Nt sure of the things bt this is what confuses me â€¦ have a look at first para

SL (Stop Loss): If you bought a stock at 112 and you want to limit your losses to 102
which is 10 points. So if the markets comeâ€™s against you your order
should ideally get squared off at 102.

SL-M (Stop Loss Market): Now with the same example what if the market crashes and passes your SL of 102 but does not execute can leave your SL order pending? this can
happen if we have sudden fall. So to avoid these situations we use SL-M
and keep a trigger price which is 102. Now even if the markets fall by a
margin the order will get executed 102 or below.

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Stop-loss of 102 will be triggered immediately, As current price is already down compared to that. So all stocks will be sold at 100.

It wont as sl n slm orders come with a â€śtrigger priceâ€ť â€¦ it shall wait for the mrkt to trade on that price

but, why donâ€™t you use limit order to book profit?

Dear lotus

Pls dnt bother Wl experiment to find out

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order will get rejected. For targets use Limit order. For stop loss use SL-M

Just want that i donâ€™t have to sit in market continuously n secondly whenever my trgt comes, it gets booked on the mrkt price

got your point. As there is no trigger price and market order mechanism in limit order. Why donâ€™t you try with small quantity and let us also know.

Exactly brothr â€¦ sure will update in this thread

Actually you have written two number 102 SLM and 98 SLM which confuse me OK i got UR point try it and also share with us.

As @RahulN mentioned, it mite get rejected i feel same â€¦ wil update here â€¦

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Thanks for ans