How to place SL exactly between a range

Zerodha Zerodha platforms
1

Hi @siva ,

Since I am an options trader, I want to place SL exactly between a range (no positive or negative slippages).

For instance, I bought an option at Rs.100 and want to place SL between 140 and 142.

  1. As per zerodha, if I choose normal SL (trigger at 140 and limit at 142) and let’s say market price touches 140 and then came back to 138, still my orders gets executed (positive slippage). So how to avoid this?

  2. If I Put both trigger and limit as 140, would that serve the purpose? Because technically, that also might give positive slippage if above scenario happens, right?

2

Here you are trying to place Sell SL order above LTP, which cannot be done, the Sell SL or SL-M orders have to be placed below LTP.

If you are trying to use it for purpose of Target then you will have to use Sell Limit Order.

3

Hi @ShubhS9

Sorry, In the above example, I sold option at 100 and trying to place SL exactly between 140 and 142.

Now can you answer both the above questions please?

4

There is not much one can do to avoid slippages.

Since you are trading Options, given their volatility, you are better of placing order by giving some room between Trigger and Price than placing both Trigger and Price at same level.

Say in second scenario where your Trigger and Price are at same level, trigger hits at 140 and price moves to 141, in this scenario your Sell order won’t get executed.

5

Right but can you please clarify this,

  1. “if I choose normal SL (trigger at 140 and limit at 142) and let’s say market price touches 140 and then came back to 138, still my orders gets executed (positive slippage)”, right?

  2. Also, “If I Put both trigger and limit as 140, would that serve the purpose? Because technically, that also might give positive slippage if above scenario happens, right?”

Thanks

6

Yes, if your trigger is hit and price moves lower after that your order will still get executed.

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