I saw a video on stop loss orders by Zerodha and also read this post(https://zerodha.com/z-connect/tradezerodha/zerodha-trader-software-version/stop-loss-orders-limit-market). But nowhere it is explained with examples. So still many confusions regarding stop loss orders.
To make it clear I have prepared a table. Please fill this table and answer my sub questions.
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When I hold stocks in my portfolio and want to sell above or below certain price in order to maximize profit or minimize loss
I hold 100 stocks of XYZ company in my portfolio at average buy price = 100 and wish to sell all 100 stocks if CMP goes below 90 or above 110
# CMP SL-M R1 Executes SL R2 Executes LIMIT R3 Executes Remarks
1 95.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
2 89.95 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
3 90.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
4 89.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
5 88.95 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
6 70.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
7 110.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
8 109.95 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
9 110.45 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
10 111.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
11 130.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
Entering above or below certain price while buying stocks inorder to enter in bullish trend or best buy for value stocks
Want to buy 1 stock of XYZ company.
CMP SL-M R1 Executes SL R2 Executes LIMIT R3 Executes Remarks
1 95.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
2 89.95 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
3 90.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
4 89.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
5 88.95 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
6 70.05 TRG: 90 TRG: 90 LIMIT: 89 LIMIT: 90
7 110.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
8 109.95 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
9 110.45 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
10 111.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
11 130.05 TRG: 110 TRG: 110 LIMIT: 111 LIMIT: 110
Q1 SL order guarantees that you buy/sell price will be in the range betweeen TRIGGER price and LIMIT price? Is it true?
Q2 Fill the column ORDER EXECUTES with any one amoung : YES | NO | REJECTS
Q3 Fill the column REMARKS if (R1 = R2 or R2 = R3 or R1 = R3) or (R1 | R2 | R3 = REJECTS). Explain when to choose which order in case (R1 = R2 or R2 = R3 or R1 = R3)
Now I think you can copy this text
I will give you a gist of stoploss orders. There are 2 types: stoploss limit(SL) and stoploss market(SLM)
SL order consists of limit price + trigger price. When the trigger price has reached, a limit order is sent to the exchange.
SLM order consists of only trigger price. When the trigger price has reached, a market order is sent to the exchange.
Ex. Let’s say you buy a stock at 100 and keep stoploss as 95 using:
Thanks. Please fill the table and post it as answer.
What is R1, R2 and R3?
It should be Resistance levels
No it is order 1(R1), order 2(R2) , order 3(R3)
Do you want him to place the trades for you as well? He has with effort explained everything! Have some consideration for the guy answering your questions. Use the explanation and fill it yourself.
First of all I appreciate his and everyone’s efforts who try to answer the question and I thank them all.
But for once if we have this table ready then every one can refer this. We can find many articles on on stoploss on net but with no/less examples. I hope you understood.
Completely false.
You call any expert, Customer care etc and they will tell you the same thing that SL order guarantees that you buy/sell price will be in the range betweeen TRIGGER price and LIMIT price.
But this is utterly nonsense.
What is true is that for 99.9999% times in real life you will get buy/sell price in the range betweeen TRIGGER price and LIMIT price
for sale limit order should be above CMP
For buy Limit Order should be less CMP
