Hi,
what if I had kept an SL and my internet connection lost and if the order was pending at the exchange
will it be executed if SL is reached?
If you have placed an order it will get executed even without internet connection.
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If you place a sl order, it goes to the exchange. Internet hardly matters after. You can switch off your laptop and mobile both and it will still execute if sl is hit.
Another thing that many people might not know
Sl order will be executed 99% of the time even if broker goes down or becomes unresponsive. Meaning that if you set the sl order earlier in the day when everything was working normally, then the order went and was pending at the Exchnage. During later part of day, even if broker glitches and stops updating prices, there’s a very high chance that your sl will still be executed at the Exchnage and broker will update the exit price etc when glitch is solved.
Of course here I’m talking about broker glitch. If Exchange itself goes down then no brokers and nobody can help.
But exchange going down is extremely rare. Generally individual brokers go down for a while. So its a good idea to have sl in system which is pending at the Exchnage.
It depends on your SL order. If it’s a SL-M order, then most definitely it will get executed even if your internet goes away.
In case of SL-L, If Limit price and trigger price are too close, there are chances it might not get executed. Today I placed a SL-L order in Nifty Mar Fut where the trigger and limit price were pretty close. It didn’t get executed. I had to exit manually.
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For SL-L orders trigger price and limit price should be sufficiently wide to ensure execution. But this has nothing to do with the internet connection. Whether order will get executed or depend on the bid-ask spread and depth.
Yes, that is what I am saying. If the difference is not wide enough and he loses his internet connection, there are chances SL order will not get executed. And he wont be able to manually exit due to loss of connection. Thus a sufficient gap should be maintained.
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He is asking about internet connection not the difference between slm and sl-l. In fact, slm doesnt even exist in nifty and bn options today. slm gets placed as sl at limit price so it slm is now like sl-l without any gap between and trigger and limit price which is even worse.
I know what he is asking. I am giving him scenarios where losing internet connection might be detrimental. In options you need to put SL-L with sufficient gap since SLM is blocked. For other liquid securities, SL-M can be used in intraday without any fear of internet loss.