Stop loss vs Limit order

[snimavat]

I am confused between Stop loss vs Limit order. can any one explain..

Both seems to do the same thing

- Stop loss (Buy) = Buy when market reaches the stop loss price
- Stop loss (Sell) = Sell when market reaches the stop loss price

Limit orders also do the same, then whats the difference !

Again, how many days stop loss and limit orders are valid, just for the same day or what !

I use angel trade..

 

[bunny]

Apart from slight difference in how they work, they are primarily differ in their purpose.

A stop loss order is used to quickly and automatically close a trade when you think that your position is in the wrong direction. The stop loss order can also be substituted by a manually entered sell order.

However, the benefit in a stop loss order is that you get to exit quickly in a volatile market.

Example:

Tick 1 - 122.50
Tick 2 - 122.45
Tick 3 - 122.35
Tick 4 - 121.90
Tick 5 - 121.50

Thus, when the price is move rapidly, you cannot expect yourself to have enough time to enter the order. By the time you enter the order, the price may have slipped away farther. This is especially of importance to day traders or other traders who use leverage. Small losses can quickly snowball into big losses.

 

[aadammahdi]

i think yu have confused with buy limit, sell limit, buy stop, sell stop.. am i rite? all these are advanced orders (pending orders).. yu can opt buy limit below the current market, while buy stop above the current market. same reverse for the sell... i think yu will be satisfied with this answer.. (stop loss is for limiting our loss wen market goes negative)

 

[Shareglare]

Hello,
Just read the post & felt like to get my query solved by the experts here regarding SL Order.

I am confused about SL order & how to put them like what should be the trigger & limit price when placing a SL Order. Will be thankful if any of you experts explain with the following condition: -

* I have a stock currently trading @ 210. I feel like that if it crosses 215 it will go higher & i should buy it around 216.

So what should be my trigger price & limit price to get it executed within my desired price range of 215-216.

I am using Odin Diet & very new to this. Will be thankful for a bit explaination.

Rgds.

 

[babula12]

If you purchased @210 and asper you it will reach 216

you put the sl 208 a and same for tigger price and sl

 

[t_aravindkumar]

Stoploss Order is used for limiting the loss in case the selected stock is going against our trade. Limit Order is used to buy or sell a stock at a particular price....in case of Market order we don't give the price........

 

[Subhadip]

Hello,
Just read the post & felt like to get my query solved by the experts here regarding SL Order.

I am confused about SL order & how to put them like what should be the trigger & limit price when placing a SL Order. Will be thankful if any of you experts explain with the following condition: -

* I have a stock currently trading @ 210. I feel like that if it crosses 215 it will go higher & i should buy it around 216.

So what should be my trigger price & limit price to get it executed within my desired price range of 215-216.

I am using Odin Diet & very new to this. Will be thankful for a bit explaination.

Rgds.

i can say that if stock X is trading @210,
u thought of that it is bullish..and u want to give a call to buy if and only if it crosses the previous high, "the resistance", then only u will buy..
then u can give a buy order with following....
the trigger price is @215...
and limit price is @216..
it is in NSE order..
now let me clarrify ..
when the stock X cross 215 the order buy call get placed in market with price tag of @216...
so if in that day the price goes higher it will be bought @216..
but.. if the price does not cross 215..the order does not execute..
also if the price cross 215 the order got triggered but does not got to 216 also it will not be executed..
so trigger price is the price where order will be placed in exchange and the limit price is where it will be bought..

HAPPY TRADING:clap::clap::clap:

 

[Subhadip]

one thing more..
u can give buy order with trigger price of @215..and order in market price..
that means ur NOT giving any limit order..
so what it will do??
the stock X when crosses @215..the buy will happen what ever is the market price..it may be @215.05,[email protected],,@215.95...Or @216.. or if it is going up heavily..then buy can happen in higher price @217..or higher..
what ever will be next tick there it will be bought..
now the problem of not giving any limit order is the slippage..

HAPPY TRADING:clap::clap::clap:

 

[jegatheez]

What will happen if we want to buy 10 shares for price X, and at the time of execution, there are only 9 shares available,which comes under our limit price..

Will the 9 shares will be bought at that price and one more share will be bought in next turn when it matches with limit condition again at later time?

or only when all the 10 shares are available at that time, it will be bought(executed)?

Pl clarify.....

 

[ajaykamath1]

What will happen if we want to buy 10 shares for price X, and at the time of execution, there are only 9 shares available,which comes under our limit price..

Will the 9 shares will be bought at that price and one more share will be bought in next turn when it matches with limit condition again at later time?

or only when all the 10 shares are available at that time, it will be bought(executed)?

Pl clarify.....

I had the same doubts - thank you drsubhadip.
Would realy appreciate if someone please answered "jegatheez"s question as I am curious about it too.