Stop loss Order Trigger

F&O
1

Hi,
I had shorted 07th JUL 34900 CE at Rs 18.9 for which I had put a SL Limit order

In SL Limit order, as it not allowing SL-M order, Trigger price was 45 and SL price was 47.3.
My SL was triggered. Up on checking SL has hit at trigger price itself.
07th JUL 34900 CE day high was Rs 46.65 at that time.

Both Screen shots are attached below.

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My understanding was since it is limit SL, If it didn’t get any buyer at 47.3 it will jump. but it has triggered before SL price. (at trigger price itself.) Liquidity was not the problem I presume as it is current week + OTM strike + only one lot + there is huge qty in market depth.

Can anybody guide me what has happen… Why it has executed at trigger price.

Thanks in advance.

2

Because you put the buy limit price at 47.3 the system bought at a more favourable price which seems to be 45 in your case, once your trigger was hit. If you wanted it to execute at or above 47.3 you should have put the trigger price at 47.3 or more.

1 Like
3

Thank you sir. Understood.

Next on wards I should put Trigger price and SL price as close as possible.

Thanks again.

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4

Keep your trigger and limit bit wide (based on bid-ask spread) if you want to guarantee execution.

5

Once the SL order is triggered, the limit price specified will execute at the price specified or a better price, for a buy order: at the price specified or a lower price and for a sell order: at the price specified or a higher price.

Once your order was triggered at Rs. 45, since 45 will be the better price you are getting compared to the price specified (Rs. 47.3), the order executed at Rs. 45. You can learn more on how limit orders work here.

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