Equity options query

Is cover order valid on nse equity stocks?

Can GTT be used with nse equity options, to set a stop loss and a target?

You can’t use Cover Order or Bracket Orders for Stock Options.

Yes, GTT can be used.

Thanks Shubh! I have a question on GTT, once when i placed it, it showed disabled…any idea why was that the case…

Also, is there any other way to put sl and target on equity options, with no additional margin?

I have another query, suppose the price of my option is at 21.75 right now and i want to exit quickly…can i input any limit price(20) below cmp, to exit quickly…or will this backfire and exit at exactly 20

GTT orders might not have been available for Stock F&O at that time.

Once your order to take position in Option is complete, you can use SL order to place Stop-Loss and Target, this orders are valid only for a day.

Assuming you are Long, if you place Limit exit (Sell) order below CMP, it will be executed at best available price.

Stock Options have wider Bid - Ask spread, it is better to look at market depth and place exit order accordingly.

I have read in several qna’s that market order and slm orders are not valid for equity options. Is that changed now?

I am aware about the use of SL order for stop loss, but how to use SL order for target…can you explain it to me or direct me to a post explaining the same.

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You can’t use SL-M orders for Stock Options.

Suppose you Buy a Option at 10 and want to put SL at 8 and Target at 12. This is what you can do.

For Stop Loss use Sell SL-Limit order with Price of 8 and Trigger 8.05

For Target you can put Limit Sell order with Price at 12.

Alternatively you can use GTT OCO Order, you can learn more about GTT here.

Do i need extra margin while using the first method and does it matter if i use mis or nrml?

No, you won’t need extra margins. If your main order is MIS then it is better if you use MIS for SL and Target, if it is NRML use NRML for SL and Target.

Thanks a lot shubham:slightly_smiling_face:

Is this the correct way to place buy, sl and trigger, using gtt for equity stocks option?

Yes, this is right.

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