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How to place STOPLOSS order in Sharekhan

Tuesday, December 21, 2010 | Labels: | |


Now mobile platform for trading is become common thing with passing days. This is key in hand of trader and investor, to place their order by their own hand. This is not always easy to good tools and first place. There are so many problem arises in front of new user. There may be simple problem, but when they stand in front of you, then those simple problems feel like climbing Mount Everest. I am not joking. I faced that problem in my initial days of market. Still daily I am encounter with various problem and try to solve them.

Stop-loss order is still become tedious problem for my-self. I was sitting on BOLT almost one month without remuneration to place order of trader in my friend’s office. Even those one-month are unable to teach me, how to place stop-loss order (Most of trader are against stop-loss order. They want to play order in naked.) So I was not familiar with stop-loss order online myself. Over time I feel ashamed to ask any other for explanation. Ignorance and hiding is hurdle in learning new thing.

Before you learn about, “How to place stop-loss order?” You should know what is stop-loss. If you are know this, then this is best thing. This explanation for other for who doesn’t know. This is short explanatory.

Stop-loss order:
    Stop-loss order is provision of trader against market odds. Suppose you Buy for e.g. Suzlon at 92 , you are sure that it will go upto 100. There may be chance to market is against you, so you should keep in mind that if Suzlon broke level of 90 it will weaken. So you can place stop loss of 90. To protect your capital you acquire marginal loss of 2.

You can also stop-order on buying side also. In short condition.
While you putting stop loss order;

Following are confusing term on order form;

Trigger Price: on online pallets of order form contain Trigger price.
    As above example of Suzlon you should place Trigger price as 90.50\

Limit Price: Limit is bottom of price where you want to exit. i.e 90 in our case.

In sharekhan order form;
  1.  You select sell order form.
  2.  Place your desired QUANTITY.
  3.  Place TRIGGER PRICE in our example it is 90.50
  4.  Place LIMIT PRICE in our example it is 90.

So it as Suzlon’s price touch to 90.50, then your order should trigger and it reached to 90 then it will executed. So your stop-loss order will executed in band of 90.50-90.

CAUTION:  In case of sudden fall in your stock can create big gap. Your stop-loss order should not execute. In our case Suzlon directly traded on 91 to 86  in this case your order should not executed. So avoid it place wide gap between TRIGGER PRICE and LIMIT PRICE in volatile market condition.

You can also check my another article on Portfolio and watch list provider for India.

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