This is strange thing I feel that when putting a Stop Loss order I have to give a fixed trigger price. And if & only if a trade happens at that price then only I get out of the position. Why is that so?
Suppose I bought 1 lot Copper at 452. Now I place a Stoploss Sell Order with 449 Sell price with 449.95 trigger Price. Now if Unfortunately Price Falls there is a great trap of Trigger Jump. I mean CMP goes down to 450 and then suddenly 449.9,449.8 and so on. In this case my SL order is not executed and If I m not alert I may face huge losses.
So What I am asking is Can there be a simple provision like if CMP goes equal or below trigger in a Sell Stoploss order then execute that order. and Vice versa if CMP goes equal or above trigger in a Buy Stoploss order then execute that SL order at given or Market Price.
Is this easily possible Or Is there any technical glitch to make provision for this? I do have suffered because of this in the past.
That’s not how it works Vishy.
There’s no rule that a trade has to get executed at your trigger price.
In your example, if you’ve placed the trigger @ 449.95, and if the price of the stock drops from 452 directly to 449, your trigger will still get activated.
Your order execution depends on the availability of the buyer at 449. If there are no buyers available at 449, then your SL order becomes a limit order.
vishy, I think you are mistaken.
Current system which is already in place is having this greater or lesser than trigger price thing, what is that you desire.
Even if no trade executes on 449.95 still your trigger will get activated since the price has gone lesser than 449.95
The situation what u face could be different, if you use SL-Limit orders and price jumps from 450 to 449, your order at limit price of 449 will be placed to NSE, but unfortunately price has already moved to 448.5 etc and you want to sell at higher price 449. So your order will not execute and you will incur more loss.
To avoid this use SL-M orders or give sufficient gap between your Trigger price and Limit Price.