Zerodha....

[Newbie Day-Trader]

Hi Vijay,

When you meant admin, I thought you were talking about the moderator...

Lot of confusion on triggers for stop loss orders... For your stop loss to be activated it is mandatory for the trigger price to be recorded on the exchange...

So if you put a trigger of 5625.65 , your stop loss order will get activated only if this price is recorded on the exchange... If nifty falls from 5630 to 5625 in one tick and this price is not recorded on the exchange(5625.65), your order will not get activated... So try keeping triggers at whole numbers , your limit price could be anything, but triggers keep it at prices that you think will be recorded when markets move fast... In this case ideal trigger would have been 5625 or 5620...

Cheers..

Conflicting views ........ I think you may be wrong on this one, Sachin.
If this were the case, most stop losses in companies in equity, would never become active, and this would be a widely known issue. Its common for a stock, not actively traded, to fall a few rupees without a trade in between, keeping the stop loss trigger inactive. And this would have been widely doscusses in this forum, as we have thousands of traders here who trade in cash market. It would have been a hot topic for dicussion in cash market.

Can you please confirm with the exchange and get back to us on this regard?
If I keep a trigger at round figure, I face slippage. I dont think that EVERY 5 paise tick is traded at when Nifty goes up or down, and this would be a very commonly discussed problem, if what you say was actually the case.

And if its true, then its just a matter of time when disaster srikes day traders. It not a question of " Will it " It then becomes a question of " When will It "

Will find out about it from NSE tech boys tomm and post back...

It is definitely not true. At least a couple of times by mistake I have put the trigger price for a sell order well above the days high and the limit price where I intended, below the support levels and the order had gotten triggered, and sold at the going market price even though obviously the exchange had never recorded the price where my trigger was set by mistake.

So what is the final verdict?

Must the trigger-price be hit for it to get activated? Or ANY price lower (higher in case of buys) than trigger-price will do?

Just looking for confirmation on this.



Ok, a few questions.

Scenario 1 - I buy @95, Current Market Price is @100 & I put a limit-sell @105.........BUT........ I DON'T put any trigger-price........will the sale be executed @105 or above, given that the instrument is liquid enough & the price stays above 105 long enough?

Scenario 2 - Buy@95, CMP@100, limit-sell @105.......AND I put trigger-price @105 also........will the sale be executed @105 or above, given that ......?

Scenario 3 - Buy@95, CMP@100, limit-sell @105.......AND I put trigger-price @104........again........what'll happen?

Thanks

 

[hc9001]

Re: Trigger price

Trigger price is the price that you mention to make you order active.

1. If nothing mentioned as 'Trigger price' then your order directly hits the active queue at the exchange.
2.If 'Trigger price' is mentioned, then your order sits on the side queue. As soon as your mentioned trigger price is hit, the order gets transferred to active queue and become active.

Note: if this 'Trigger price' is not recorded on the exchange like 5625.65, your order will not get activated...
That is the Rule.

Regards.

 

[vnk2000]

What is the brokerage of 5000 put at current price of 60?

 

[GTji]

Re: Trigger price

Trigger price is the price that you mention to make you order active.

1. If nothing mentioned as 'Trigger price' then your order directly hits the active queue at the exchange.
2.If 'Trigger price' is mentioned, then your order sits on the side queue. As soon as your mentioned trigger price is hit, the order gets transferred to active queue and become active.

Note: if this 'Trigger price' is not recorded on the exchange like 5625.65, your order will not get activated...
That is the Rule.

Regards.

This seems to be a very good example of how a simple things start looking complex and complicated, and ultimately nobody understands whats going on.

If it is a sell order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes below 5625.25. The sell order will be activated even if it does not hit 5625.65 specifically but directly jumps below it.

If it is a buy order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes above 5625.25. The buy order will be activated even if it does not hit 5625.65 specifically but directly jumps above it.

 

[murthyavr]

Re: Trigger price

This seems to be a very good example of how a simple things start looking complex and complicated, and ultimately nobody understands whats going on.

If it is a sell order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes below 5625.25. The sell order will be activated even if it does not hit 5625.65 specifically but directly jumps below it.

If it is a buy order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes above 5625.25. The buy order will be activated even if it does not hit 5625.65 specifically but directly jumps above it.

Dear GTji,

I am afraid that this is not the mechanism.

According to my experience, it's true what Zerodha has clarified (ref. Newbie Trader's post above) and what hc9001 has reiterated. The trigger price needs
to be recorded on the exchange.

 

[GTji]

Okay , we will try an experiment tomorrow, I will find some scrip, any one which has reached its high for the day and immediately give a SL sell order with the trigger price 3 or 4 points above the high and the limit price 2-3 points below the current price and see whether it triggers or not. If this triggers, then it means what I wrote in my previous post was correct. If does not trigger, it means I was wrong, and henceforth I may have be very careful of what I put as my trigger price for my SLs.

 

[shekharinvest]

Re: Trigger price

Dear GTji,

I am afraid that this is not the mechanism.

According to my experience, it's true what Zerodha has clarified (ref. Newbie Trader's post above) and what hc9001 has reiterated. The trigger price needs
to be recorded on the exchange.

"Trigger price needs to be recorded"

This is strange kind of trade logic, which only at Zerodha I came to know of. I have not many trades on Zerodha as of now hence never experienced such a situation, I mainly trade NIFTY it has great liquidity at all price points too, so I am not in a position to confirm / deny. But at Kotak it is not the case, once the price is below trigger SL is activated that is my personal experience, even if it has not recorded the trigger price.

I left coding eons back, yet I believe that it won't be difficult to correct the logic if it is as suggested by Zerodha.

Presently it should be like this (in plain english)
ACTIVATE SL ORDER IF LTP = TRIGGER PRICE

Modified code should read as
ACTIVATE SL ORDER IF LTP = < TRIGGER PRICE sl for longs

ACTIVATE SL ORDER IF LTP = > TRIGGER PRICE sl for shorts


SHEKHAR

 

[Zerodha]

What is the brokerage of 5000 put at current price of 60?

20 Rs per executed order, buy or sell as many lots as you want...

 

[Zerodha]

Okay , we will try an experiment tomorrow, I will find some scrip, any one which has reached its high for the day and immediately give a SL sell order with the trigger price 3 or 4 points above the high and the limit price 2-3 points below the current price and see whether it triggers or not. If this triggers, then it means what I wrote in my previous post was correct. If does not trigger, it means I was wrong, and henceforth I may have be very careful of what I put as my trigger price for my SLs.

@GTJ, you don't need to experiment!! ...

It is my bad if what I had posted earlier was not right!!!!

To clear it out once for all,

Your exact price need not be recorded, even if the price goes below a SL trigger in case of sell stops and goes above in case of Buy SL, your SL order will get triggered.

The mistake everyone makes today is that the limit price will be a price higher in case of sell stops and lower in case of buy stops.. In this case, the order goes pending and people assume that because you had put a SL it ensures guaranteed execution....

That is why we introduced SL-M, so people don't do that mistake....


Hope this clarifies....

Sorry for the earlier post....

Cheers...

 

[sudris]

This seems to be a very good example of how a simple things start looking complex and complicated, and ultimately nobody understands whats going on.

If it is a sell order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes below 5625.25. The sell order will be activated even if it does not hit 5625.65 specifically but directly jumps below it.

If it is a buy order and trigger price is 5625.65, then your order will not be activated unless the price hits 5625.65 or goes above 5625.25. The buy order will be activated even if it does not hit 5625.65 specifically but directly jumps above it.

I second that

@GTJ, you don't need to experiment!! ...

It is my bad if what I had posted earlier was not right!!!!

To clear it out once for all,

Your exact price need not be recorded, even if the price goes below a SL trigger in case of sell stops and goes above in case of Buy SL, your SL order will get triggered.

The mistake everyone makes today is that the limit price will be a price higher in case of sell stops and lower in case of buy stops.. In this case, the order goes pending and people assume that because you had put a SL it ensures guaranteed execution....

That is why we introduced SL-M, so people don't do that mistake....


Hope this clarifies....

Sorry for the earlier post....

Cheers...

I second that as well