What is 'Price' in Stop Loss Braket Order?


#1

I am trying to understand the mechanism of BO. I put a Limit BO to buy HDFCBANK at 2015 with stoploss 4pt, target 8pt and trailing stoploss 1pt. The order got executed and I found two sell orders in the order book at prices 2023 (status open) and 2011 (status trigger pending). So far so good.

But in the stop loss order, there is a price tag. Look at the following image.

hdfcbank

What is the significance of the price?

Thanks for your help.


#2

Hey @ddas

The stop loss leg for BOs are SL-Limit orders. The exchange requires brokers to use “Market Price protection” with the price protection percentage set to a certain % of the LTP (Last trade price).

Presently, the price protection % is set to 20 % (as per our RMS policy based on Risk modelling).

For example,if you buy a scrip at 1000 using BO with target entered as 50 and SL trigger entered as 20, there will be one Limit sell order at 1050 and one Stop loss order with the trigger at 980 and the limit price at 800.

Similarly, in your scenario, 1812.55 is the limit price and 2011 would have been the trigger.


#3

Hi @Kshiteesh_Saralaya, thanks for your reply.

What is the significance of this price for me?

I know that the SL-Limit order is something where a Limit order is sent to the exchange if SL triggers. In this case, is the price for the limit order is 1812.55? I thought my SL-Limit order would be placed at a price 2011.

Seems, I am certainly missing something. Could you please clarify? Thanks.


#4

If 2011 is the trigger and 1812.55 is the limit price, this implies that once the price hits 2011, your order will get executed at the next best available offer within 1812.55.