Mentioned multiple time above, in this case we don’t close your position as the loss will be only for a second or so and will be normal by the time we react.
Your logic is that one would want to buy cheap and sell at higher price. But, what if you want to buy it RIGHT NOW? Say Reliance is at 2000 and you want to buy it at this LTP. If you place a Limit order > LTP, say 2005, your order will be executed at prevailing ask price BUT below 2005. Had you placed a SLM order, with a trigger say 1998 (since you want to buy cheap), the price triggers and before the order is executed, price jumps to 2050 ( so called freak). Now you will have the stock in your portfolio at 2050. Probably.
Same logic with the Sell order.
So Does the trade from chart work anymore?
& video here:
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