iCharts Discussions

[Abdulla]

Hi,

I will be grateful if anybody explain how to place the Stop loss order and profit locking stop loss (TSL) in Reliance money.

Thanks and Best Regards,
Abdulla

[mokalm77]

HOW TO GIVE STOP LOSS ORDER

If u buy shares, then a simultaneous sell order should be given.

For example,

If u buy shares of Reliance say at price Rs 1200, then a simultaneous sell order should be given at say Rs 1190. As soon as your share price will reach 1190, ur shares will be automatically sold.

There are two types of buy orders, limit order and market order.

In market order we buy shares at the market price. In the limit order, we buy shares at the limit price i.e. predetermined price.

When we give the sell order (stop loss order), the sell order will be as follows,

SELL
Number of shares: 100
Trigger price: 1190

As soon as the share price will reach the trigger price, the shares will be automatically sold off.

In the limit order, we buy the shares at the predetermined price. Say if u want to buy Reliance shares at Rs. 1200, the BUY order will be as follows:

BUY
Number of shares: 100
Limit price: 1200
Trigger price: 1199

You buy shares anywhere between 1199 to 1200 range, as soon as the trigger price 1199 is reached. In this way, u can decide at which price u want to buy the shares.

Then the simultaneous SELL ORDER will be as follows,

SELL
Number of shares: 100
Trigger price: 1190

This will be your stop loss order.

Note: Do not put a limit price in the sell order (stop loss order), just put a trigger price.

U can modify the Stop Loss Order with Modify Option in your software.

[Abdulla]

Hi mokalm77

I am really appreciating your prompt help, which means an order above/below the CMP has to be placed along with another buy/sell order above/below the CMP.

Warm Regards,
Abdulla

[mokalm77]

That's right.

In the limit order, your sell order will be activated only when u buy the given shares at the limit price. Once you place a limit order, wait till you actually buy the shares at the limit price and then only put a sell order for particular shares, because for the sell order to be given, you actually need to possess those shares.

One more thing, when you place limit order for buying the shares, the trigger price is always less than the limit price. Similarly when you place limit order for selling the shares, the trigger price is always more than limit price.