Detailed explantion for cover order

General
1

I looked into many links in google and links provided here too, but i still feel i lack the understanding for cover-order. Let me put my understanding here... 

I am buying 200 shares of SBI @ 244.90 and setting up a trigger price of 242. 


Questions:

  1. What does this trigger price indicate here when i click on buy?
  2. I also see a trigger price when i click on sell too, what does that indicate?
  3. If i buy a share and set a trigger price, should i manually sell it or the system automatically sells it?
  4. Why do we have trigger price for both buy/sell? 
2

  1. Your trigger price here indicate that you placed a SELL stop loss order @ 242(meaning sell 200 shares of SBIN if it reaches 242 or below) along with your buy market order of 200 shares of SBIN. Since here it is a market order, you do not have control over the price which the stock is bought.

  2. It is Vice versa. if you SELL a stock, say for example @ 100, you will place a BUY stop loss order higher than you SELL price. In case, the price of the stock you sold rises, then BUY stop loss order will be triggerd at your trigger price hence limiting your loss.

  3. If you set a trigger price after you BUY, meaning that you already placed a SELL order. This SELL order will be executed automatically when it meets the trigger price.

  4. Trigger price is basically a STOP(say bus stop,railway station), where your order will wait for your required price for a particular stock to arrive(like you wait at bus stop for your bus reaching your destination to come). once arrived, your order will be sent to market for execuetion