Stop loss

[amanbhati]

If the CMP of any stock is 255.
and I think that the stock get down...
But to prevent the loss in opposing direction of market, I place the buy
order with limit price 259 with trigger 258.5.
but when i put the order, then it executes immediatly, but at that time CMP is 255
Please help me....
I know that that is cheap question...
but mujhe stop loss ka chakar samajh hi nahi aa raha...
please tell me.....

 

[mastermind007]

If the CMP of any stock is 255.
and I think that the stock get down...
But to prevent the loss in opposing direction of market, I place the buy
order with limit price 259 with trigger 258.5.
but when i put the order, then it executes immediatly, but at that time CMP is 255
Please help me....
I know that that is cheap question...
but mujhe stop loss ka chakar samajh hi nahi aa raha...
please tell me.....

Who is your broker? Call them up and ask them to show you through screen shots (or a remote screen share) to explain you how to enter stop loss. Each software has slightly different way in which you enter the stop loss but all of them require you to enter two prices (Trigger and Limit)

Trigger Price: The price at which the order becomes active. Unless this price is not reached, order will never be executed. Naturally, trigger price can never be zero for a stop loss order. For Long Stop loss, trigger price will be below the CMP; For Short stop loss, it will be above the CMP.

Limit Price: The price beyond which the activated order will not be executed. If you set Limit price to zero, order will be executed at the market price as soon as it is triggered.

 

[amanbhati]

Sir,
I m using icicidirect....

 

[simplebuthard]

If the CMP of any stock is 255.
and I think that the stock get down...
But to prevent the loss in opposing direction of market, I place the buy
order with limit price 259 with trigger 258.5.
but when i put the order, then it executes immediatly, but at that time CMP is 255
Please help me....
I know that that is cheap question...
but mujhe stop loss ka chakar samajh hi nahi aa raha...
please tell me.....

do you have open position initiated in sell side? If yes, you are correct in your expectation as long as you placing order for the same quantity, not higher qty..

 

[James Martin]

There are 2 very important factors that traders are not aware of when it comes to stop loss placement:

Your stop loss strategy will determine whether your trading strategy is going to be profitable or consistently lose money.

You have to constantly track, re-evaluate and modify your stop loss strategy based on current market conditions.

 

[mohan.sic]

Sir,
I m using icicidirect....

Which option are you using in icici direct

Cash buy
margin buy
margin plus