bought Auropharma @18 .closing price was 7 .I had put AMO with SL-M with trigger price of 12 .Next day market opened at opening price around 2 ,it got triggered and squared off .
Shouldnt it have checked for trigger price of 12 .
I have read all the documentation related to market order types on zerodha ,so please dont paste me that here ,can someone please give examples to explain it better for future reference.
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Trigger price is the price at which your order becomes active.
When you are long: When you place an SL-M with a trigger price, your order is passive until the stock price hits or goes below the trigger price.
In your example: You bought the stock at Rs.18 and placed a SL-M order with trigger = 12. The next day the price went to Rs.2 which was below Rs.12 which means your trigger got activated imediately and since it was a SL-“M” order where M = Market, your order was squared off at the market price.
If you’d used the SL option and placed a trigger price and a limit price, your order would have gotten triggered, but would have gotten executed ONLY if your limit price was achieved. So if you had placed the SL order with trigger = 12 and limit = 8, then your order would have gotten triggered at 12 but would have gotten executed only if the price came to Rs.8
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