Can someone explain or point me to good resource about how the MIS SLM orders work? I have been executing MIS short/long orders and trying to create stop loss/book profit orders using SLM but have had some surprises. I understand BO and CO are the right for this purpose but I am experimenting with very small amount so don’t want to loose Rs.20+20 through BO/CO.
The brokerage on BO is ₹20 or 0.01% per executed trade whichever is lower . So if you are going to trade small volumes then the brokerage would be less than ₹20 each side. Can you be specific about your query. Or you can find videos on the YouTube channel of Zerodha. Search for ZerodhaOnline in YouTube.
This is a feature.
You need to search read varsity or search about order types.
AND LEARN about them.
For buy - Limit order above LTP and SL order below LTP will execute at LTP only.
Vice versa for sell.
I use stop loss for below cases, hope these examples make it clear:
CUTTING LOSSES - I bought Maruti at 9000. Now it falls to 8990. I put another order - SL-M on the existing order, with trigger price 8980. Means i can take maximum loss of (9000-8980) = 20 rs per share.
SAVING PROFITS - I bought Maruti at 9000. Now it is 9025. But I feel it may fall again and I want to preserve my profit. So on the existing buy order, I put a SL-M order with trigger price 9010. Means even if it falls, I have ensured profit of (9010-9000) = 10 rs per share
ENTERING CIRCUIT STOCKS - Vakrangee is going lower circuit to lower circuit every day. But I want to take risk to buy it once it opens lower circuit. But again I cannot sit full day and watch when its lower circuit is opened. So lets take todays price of 190.40. I will put on SL-M Order with Type = BUY, and trigger price =195. So if Vakrangee comes out of lower circuit, my order gets executed at or near 195. And then I get the profits while the share moves to upper circuit every day. Tomorrow lets say upper circuit price is 210, morning after market opens i put another SL-M order with Type = SELL with trigger price = 205, if Vakrangee falls suddenly, i exit with profit. If it doesnt fall, the stop loss order is expired and I can continue to hold it till upper circuits continue.
Vakrangee types of circuit stocks are very risky, only risk takers take such trades. Please dont take it as tip, its just feature which can be used.