Demerger and Stop Loss confusion

Hi, Imagine I bought 20 stock at Rs 100 and put Stop loss at Rs 75. However the company accounced demerger and the stock price of the parent company reduce to Rs 50 per stock. Wil lthe parent stock will be executed as the price fell below Rs 75.

Also, Is it possible to correct the existing executed order like changing Stop Loss trigger price ?

I’m novice in Zerodha and in Stock. Please ignore any mistake from my side.

Hi,

Stock splits do not happen in the middle of trading sessions so a stock trading at 100 will not all of a sudden start trading at 50. The splits are announced in advance and come into action on a new trading session.

In your case, the stock will open around 50 on the day of stock split and you should place a new stop-loss order based on the ex-split price.

By the way, I hope you have taken 75 just as an example and it’s not a real stop-loss for a stock @ 100…it’s super wide :slight_smile:

Hope this helps…

~Cheers
Neha (www.VRDNation.com)