Place entry orders but with limitation

Zerodha
1

Hi Team,

I want to enter into an option at market price but don’t want to get caught with freak trades.

For example ltp is 100 and I am OK to enter until 105 (5% more than ltp)

Please let me know which option to use in kite.

Thanks

2

For this you can use Limit order. Limit order allows you to buy or sell at the specified price or a better price (for a buy order better price will be price specified or lower price and for a sell order it’ll be price specified or a higher price).

If the current market price moves beyond the price you have specified ie. higher for a buy order and lower for a sell order, the order will remain pending.

Taking your example, if you place a limit order at 105, the order will execute at 105 or lower price. If the price goes over 105, it’ll remain pending. You can learn more here: How to use limit orders as market orders?