F & O selling in bank nifty


If I bought bank nifty option at 705 and kept sell order SL as 700 and trigger price as 710

What if trigger price not reached and reached SL price 700…

Will the order be sold at 700

Have you tried keeping such a SL-L order before?

not sure if you can keep this SL. the trigger price should be lower than CMP

First, you can only use SL-L order and no SL-M order.

Second, in your case, you cannot put Trigger price more than CMP. The app won’t accept this stop loss… you can keep trigger price 710 and SL 700 only if the CMP is greater than 710…
And order will get execute anywhere between 700-710 depending on the liquidity (mostly minimal slippage in BN)

Agreed with @Nidal .

Stop Loss market don’t work anymore for derivative market , by there stop loss limited which we can be place. SL limit are planned such that trigger price > limit price for buy order and trigger price < limit price for sell order.

And if both trigger price and limit price has least spread AND no buyer at that particular sl price and trigger price then your order will not placed and you get large loss if your trade gets wrong. It gya be like buying NIFTY28THJUL16400CE @210 @1lot and place sl and trigger price @205 and there would be no buyer that you order will not placed in market . If incase price went @190 , you will face sum of 1000 loss and price went more and more against your trade you will inquire more losses.

To prevent from non triggering order you should limit and trigger and wide enough to liquidate position.

Now back to your question what if sl hit first then you will be out of trade regardless of trigger price hit. And exactly is not always in market thus spread is there.

SL can also be used to open new position, make sure if you exit in profit, close all you SL position asap.

Set your stop loss limit lower than the trigger so you save up and don’t end up suffering the price hit. It depends if you’re planning to hold or if you’re exiting, wrap up the stop loss so you make profit.