Understanding Trailing Stop Loss in BO

General
1

Q1) Suppose I place a buy order at 100. Stop loss at 98 and trailing stop loss as 4.
Is the above combination even possible?
How does it work in this scenario? Does the SL remain at 98 till the price reaches 102 for the first time or it is immediately set to 96 as the price starts moving in favourable direction?

Q2) How often is stop loss updated?
Lets say I place a BO buy order at 100. Stop loss at 98 and trailing stop loss as 2. When is the SL updated for the first time and how often does it get updated after that?
Is SL updated for the first time only when price reaches 102 to 100 or is it updated after every tick in my favourable direction i.e., LTP=100.5 => SL=98.5, LTP=101 => SL=99 etc

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2

Going by your example…
Buy price: 100
Stoploss: 98
Trailing stop loss: 4

Bracket order executes two orders here, a buy order at 100 and a sell order (stop loss) at 98.

Now you are in the trade with a stoploss at 98.

Now for eg.
Price moves to 102, stoploss will still be at 98.
Price moves to 104, stoploss will be modified to 98+4 = 102.
Price moves to 107, stoploss remain at 102.
Price moves to 108, stoploss modified to 106.

For every 4 points in your favor, stoploss trails.
I hope its clear.

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3

@AmJay Trailing stop can be applied in normal cnc order for day validity?
Is it just specific to BO only?

4

Thanks AmJay for clearing.

Do you know about my second query about how often the stop loss is updated?

5

I tried entering a trailing stop loss of 0.5 but Kite app said it only accepts increments of 1. So I can’t use it for small targets like 0.6?

Also does the trailing stop loss move down if LTP moves down? If so at the same decrement of LTP as it goes up?

6

Trailing stop loss is exclusively for bracket orders.

For other order types, you have to manually update the stoploss.

7

Ok. Thanks @AmJay.

8

Minimum value for trailing stop loss can be 1 for NSE/BSE.
For CDS you can have a minimum value of 0.05 (i think).

No, the trailing stoploss does not move down. If the price comes down, it will hit your trailed stoploss.

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9

The first time, the stoploss will be 98.
It will update its value to 100 only if the “price” goes to (100 +2) = 102.

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Lets say we buy at 100, SL at 1.8( 98.2), trailing stop at 2.2.
Q1) Based on responses till now, i am assuming that price reaches 102.2 is when the first stop loss is triggered. Am i right?
Q2) If price moves to 102.3, where is the stop loss at ? I want understand how often it gets updated.

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A1) Yes. When price reaches 102.2, stoploss order will get updated to 100.4 (98.2 + 2.2)
A2) The stoploss will remain at 100.4
Now if price reaches 104.4, stoploss will then be updated to 102.6 (100.4 + 2.2).

Hope its clear now :blush:

Check out this video

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13

Thank you
It is clear now

14

Hi,
You are able to set 0.50 as Trailing SL by change & select using
" Tick " mode of SL often using price mode, there you are enter number of Ticks to be modify.
In detail as your query set TSL for 10 ticks is., 10 X 0.05 = 0.50 .
I think you should understood.