SL/Sl-M order clarification


#1

I’m new to trading and would appreciate if someone can help answer these 3 simple questions:-

1)In a SL order-why should the trigger price should be greater than the price I want to sell? It should be lower than Price I set(to minimize the loss?).

2)Also,for SL-M order-I got the error-Please explain this- RMS:Rule: Check Trigger price vs LTP for SL-M orders ,Trigger Price:614.00, LTP:609.40

3)Also,if I am trying to sell a stock-there are 2 things to be filled up which are unclear- qty. and Disclosed qty.


#2

1.You have to keep in mind three things while placing SL order to give price and trigger price trigger price should be higher than to price and price and trigger price should be lesser to LTP price.once hit the trigger price your order will turn to active from passive mode which will place limit order with the range mentioned in SL order window.SL order no guarantee on execution if any lack of liquidity with respective contract where your order may turn to be pending.

2.SL-M order trigger price should be lesser than LTP Price,if you give higher price in that case will reject order considering entered wrong fields.you have to mentioned vice versa for SL and SL-M buy order.

3.Quantity that you wish to place no of units for buy or sell,Disclosed qty is an optional this can be used for illiquid stocks as you have to disclose minimum 10% total quantity.There is no disclosed qty for future and options.


#3

Lets say you have stock at 100.

You want to sell it if it starts falling

You feel if it falls to 95, my stop loss order should be triggered (activated). It means trigger price is 95.

With this there is two possibilities:

  1. When it falls to 95, you want it to automatically execute at any price - SL-M. It may execute at 95, 94.5, 94, 93 whatever best price it receives from market.

  2. When it falls to 95, you want to sell atleast for 94. So in this case, Order type = SL, Trigger price = 95 and Limit price = 94.