Considering a person who has day job. He did his analysis on weekend then placed a Buy CNC Order for Monday. Now he wants to hedge his position buy putting his Stop Loss incase buy gets triggered.
Current Share price -110
1] CNC - Buy Limit - 100 (quantity - 10)
2] CNC - Sell-Market - Trigger - 95 (quantity - 10)
Now before going to work i can place order Order 1 i.e. Buy but can’t place order 2 since i don’t have holdings. Hence a basic Buy with Stoploss order is not present. Is there any way to do this.
Secondly I would like to propose a solution, let me know if it would work. This is utilizing MIS.
Suppose to accomplish above what i do is that i use MIS Category.
I place following orders.
1] MIS - Buy Limit - 100 (quantity - 10)
2] MIS - Sell Limit - 95 (quantity - 10)
At 3:00 PM
- if none of them get hit then i have no positions.
- If Only Order 1 Gets Hit I have 10 position which i can convert to CNC (Provided i have margins) and now i can take delivery.
- If Both order 1 & 2 Gets hit, did i successfully accomplish what i was trying above. Will Zerodha tread positions which got bought in order 1 to square of my sell positions in order 2. So by 3:00 P.M. I have same as no positions with total 5*10=50 Rs Loss.
I see this is the only way in which i can put orders and leave for work and then check once at 3:00 PM to see status.