Stop Loss And Target

[amanbhati]

SIR PLS TELL ME....
if I have total capital of 20000 Rs
and broker gives me 5 times levarage, then i can trade with 1 lakh Rs.
then 1 buy the stocks of 1 lakh....
Now, can i sell it, without adding extra margin??

 

[amanbhati]

Sir pls tell me............

 

[imperfect_angel]

yes you can sell it without adding extra margin

 

[James Martin]

A stop-loss becomes a market order once the stock price falls below that price level. This is typically understood as the most you're willing to lose on a trade, but realize that if the market gaps down, then you could be filled much lower for a larger loss.

Target price has different meanings. If you mean a price target per your trading plan, then it is the price at which you would go to sell out of a long position to lock in profit.