Doubt regarding Limit Sell Order. Please Help


Usually Zerodha does not allow to sell stock options at market price owing to illiquid volume reasons. So the only option left is to use limit buy/sell order. I’ve faced issues due to this limit orders, so please take following example into consideration and answer…

Let’s say I’ve bought Reliance 2000 CE at 62.80. Now Reliance starts coming down and 2000 CE premium price becomes 58.20. So I just want to exit from this position as soon as possible to avoid any father loss. But since it’s a constant fall, by the time I enter a sell limit price at 58.20, price drops to 57.60 and when I modify the sell limit order to 57.10, it has fallen to 56.80. You getting the plot? Price is not staying constant or coming to my sell limit order.

So, my question is, inatead of putting current marke price (which is falling every second) as sell limit price, can i put a much lower price there and expect Zerodha to cut it off at current market price?

Like if the latest bids are in around 56.20 - 35.80 range, can I place sell limit order at 50.00 and expect Zerodha to sell my position at highest available bid and not at my original sell limit price?

Please guide. Thanks in advance.

A Buy Limit order above and a Sell Limit order below Current Market Price will execute at best available price in the market. You can read this article, which will help you understand how it works.

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