1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

How "Stop Loss Trigger Price(SLTP)" Works ?

Discussion in 'Technical Analysis' started by praveenbkec, Nov 26, 2012.

  1. praveenbkec

    praveenbkec Member

    Joined:
    Oct 31, 2012
    Messages:
    94
    Likes Received:
    13
    Occupation:
    Software Engineer
    Hi Shabbir,

    I am bit confused about this SLTP, what i understood is

    In the context of Buy "the worst possible price we should buy the stock"
    Ex: if "X" stock has CMP of 100,
    Case 1. suppose i want to buy a stock at 101 means
    Limit Price = 101
    SLTP = greater than 100 and Less than 101.
    Case 2. suppose i want to buy a stock at 95 means, how can i place this order?

    In the context of Sell "the worst possible price we should sell the stock"
    case 3 : suppose i want to sell the stock at 98 means
    Limit Price = 98
    SLTP = 99
    case 4 :suppose i want to sell a stock at 105 means, how can i place this order?

    when i place case 2, 4 orders it is throwing some errors saying "SLTP cannot be lesser than Last traded Price" and SLTP cannot be greater than last traded price.
     
    praveenbkec, Nov 26, 2012
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Not sure I understand your question but Stop loss Trigger price is something where your stop loss is triggered.

    Stop loss does not come when you want to buy or sale but it is a case where you have made one trade but now either want to be squaring off with a minimal loss.

    The cases you have identified does not qualify for stop loss triggers.

    Let us say you have some stock X in your account and you have a stop loss trigger price for this stock as 95 (Assuming you purchased this at 100). So your sell order will be sent to the exchange for execution when the price breaches 95 or below. 95 is your stop loss trigger price and your order may get executed at 94/93 or anything depending on your type of order that is market order or limit order.
     
    shabbir, Nov 27, 2012
    Share #2
  3. praveenbkec

    praveenbkec Member

    Joined:
    Oct 31, 2012
    Messages:
    94
    Likes Received:
    13
    Occupation:
    Software Engineer
    Thanks for the reply,

    I need one more clarification,
    If i buy a stock in Equity -- CASH Buy , can i sell the that before (T+2) settlement cycles or i need to wait till (T+2).
     
    praveenbkec, Nov 27, 2012
    Share #3
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    You can sell before T+2 always but some brokers like ICICIDirect does not allow it many times.

    On top of that make sure your purchase is executed fully and also you are not short on units (at times people sell stocks that they don't have in DP) or else if you sale more than what you may be getting in your account could mean a penalty.
     
    shabbir, Nov 27, 2012
    Share #4