Say I take a BO Buy where entry order is SL-Limit order. The order gets executed and I am in trade. Before my target or SL gets hit, I place another BO order but this time a BO sell order and entry order is the same SL-Limit. Now if this is allowed to be taken by RMS, we would then have an open buy position from the first order and an open sell position from the second order. Is that allowed - wouldn’t they cancel each other? If that is allowed, would the two orders be treated separately in their normal life cycle, and would only close completely if either Sl or TP gets executed?
You can’t take two different positions simultaneously, so the second one should be rejected.
Thanks but I am getting contradictory response in this thread.
@Nithin, can you pls share your views.
They cancel each other, also two legs for each order will be pending, and when we run auto square off targets will be cancelled and stoploss orders will be executed resulting in zero net quantity but it will cost you a lot in slippages, brokerages, transaction costs etc so better not to do this.