sir,
For Eg, now the infy is trading 995 , i wish to buy at 1000 ,
i am using kite for trading,
for this , i am using sl-m to bu y a share, but, thats not but at 1000 , that will buy at above 1000 that make a 1 or 2 point loss, is there any way to buy this stock at exact price, from starting onwards i am using only kite, but using anyother software nest or pi to do this exactly, plz help me, i am get loss daily 2 points by this
Hello,
To buy above the Current Market Price(CMP), one has to either place a Buy SL order or a Buy SL-M order.
As you already mentioned, when you place a Buy SL-M order, once the trigger price is hit, the Buy order will be executed at whatever is the CMP at that point.
The best solution for you to avoid a loss of 2 points would be a Buy SL order(Stoploss Limit order).
With a Buy SL order, you can define your range of execution. The minimum range has to be 0.05. In the example of Infy buying at 1000, you can place your Trigger price at 1000 and place your Limit price at 1000.10. Here you give a range of 0.10. Once the trigger of 1000 is hit, whatever is the price at or below 1000.10, your order will execute at that price.
The slight drawback here is that if the market sees a quick upmove and your trigger of 1000 has been hit, your Limit order of 1000.10 could still remain open if the market goes above 1000.10 before your Limit order is executed by the exchange.
You can slightly increase the SL range to improve your chances of the order being executed.
As mentioned only by using SL-L will give you the advantage of buying at exact price but at a cost.The cost would be sometimes missing the opportunity to enter in to the trade itself. Also this has nothing to do with the trading application used to enter the trade as it is totally dependent on demand and supply for that particular scrip at that particular price and time.
If you are too conservative you may miss a fill. Therefore I always use SL-M but only in Nifty50 scrips to avoid big slippage. Upon being too conservative, many-a-times we miss fill in profit trades and in stop trades our entire quantity is getting stopped. So before choosing anything assess the psoitives and negatives.
Hi Trader, for getting an exact price, you should use SL (Limit order). If you want to buy INFY once it hits 1000, you should keep your buying trigger at 1000 and keep a stoploss limit order at 1000.05. This way once INFY hits 1000, your order would be placed at 1000 or 1000.05. It will be a pending order till it gets executed at 1000.05.
Can anybody explain why to buy above CMP?
If one is following support and resistance levels to enter a trade then their motive would be to enter into the trade immediately after the price crossing a certain preset support or resistance level.
For example currently nifty is trading at 8940 levels and if we consider sentimentally closing above 9000 will take it to much higher levels as it will be also life high closing for nifty, traders want to buy immediately after it crosses 9000 than at current levels, so this is one case among many where one want to buy above current market prices.
thank u sir, now i understand how place a order.
hello trader,
A similar response to your Question answered here: