I gave you an link to an article, check it out, it has been explained there, Or you can read this
From above Could you please confirm my understanding is correct or not ?
Application : Kite Web and Kite Mobile
Type : NRML orders .
Lot Size = 1 Lot
Instrument: Nifty Futures
Step 1. Buy order without SL say for ex @ 15500
Step 2. NEW Sell order (not by using “Exit” tab) as Target order @ 15550
Step 3. NEW Sell order (not by using “Exit” tab) as SL order @ 15475 (using SL-M) (This order can be used for traling SL)
After executiion of Buy order in Step 1,
If Order in Step 2 is executed (Target achieved), manually cancell order in Step 3.
If Order in Step 3 is executed (SL Hit), manually cancell order in Step2.
If above understanding is correct, is the method also applicable when we have funds greater than required to buy 1 lot (even after placing Buy order in Step 1).
I mean, after buying 1 lot as in step 1, if someone has funds more than 3 lakhs, still it will treat the orders as SL & Target orders and won’t block margin.
Your understanding is correct.
For Futures order, you don’t need additional margins to place Target and Stoploss orders. You can refer to this post, which explains it in detail.