How and When to use SL Order?

Dear All,

Pls answer my following queries with example

  1. How and When to use SL (Stoploss Limit Order) to open new position and how to place Stoploss for opened position?

  2. Which product type to use for SL order?

Thank you !!!

You would use a Stop loss order to:

1. Take a new position

You can take a new position using the Stop loss order type, if you wish to:

a. Buy higher than the market price

Eg: If you wish to buy a stock at 100, while the current market price is 95, you would use the order type SL. You would select the order type as SL/SL-M and enter the trigger price as 95.

b. Sell lower than market price

2. Maintain a Stop loss on the existing position

If you've already entered into a position and would like to place a Stop loss, you can do so by using the order type as SL/SL-M.

Eg: If you've bought a stock at 100 and would like to cap the loss to Rs.5, then you would place a Sell Stop loss order where the trigger price would be 95. See this video to understand better: