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Order Entry Helptexts2
Order Entry Helptexts2
Examples:
Stop Loss Market Buy Order (SL-M) :
You wish to buy 100 shares of SBI at CMP (Current Market Price). Lets consider that you wish to place a
Buy Order, once the price crosses above the support level of Rs. 1530. The last traded price (LTP) of the
same is Rs. 1524.6. You may place a Stop Loss Market (SL-M) buy order specifying the Trigger price (TP)
of Rs.1530. Once the market price of SBI reaches the TP i.e. (e.g.) Rs.1530, the order gets triggered and
is sent to the exchange. Subsequently, order will get executed with the best available price in the
market.
a limit price at Rs. 1535. Please note that the trigger price cannot be greater than the limit price in this
case. Once the market price of SBI reaches the TP i.e. Rs. 1530, the order becomes a limit order and is
sent to the exchange. Subsequently, the order can get executed at any price below Rs.1535.
incase the price falls to Rs. 1520 first, then your losses are limited since the stop loss order will get
executed and the other sell order of Rs. 1535 will automatically be cancelled.
For example, you first want to sell 100 shares of SBI at best available price in the market. Lets say the ,
LTP is Rs.1530.3. You expect the price to fall to Rs. 1525 but you are also wary of losing more than Rs. 5
per share i.e. above Rs. 1530.3. With bracket order, you can simultaneously place the sell order and also
put two buy orders - one wherein you can book your profit and also the second - limit your losses. You
can put a Profit Book order at any price below Rs.1530.3 e.g. Rs.1525 to book your profit and
simultaneously incase, the market moves in the opposite direction, you can also put a Stop Loss order
at any price above Rs. 1530.3 e.g . Rs. 1535 in order to limit your losses. The sell order will get executed
first and then the two buy orders will be waiting for execution. Depending on whether the profit book
price or the Stop loss price gets hit, first in the market, one of the buy orders will get executed and the
other will be automatically cancelled. i.e. Incase the price falls to Rs. 1525 first your profit is booked, as
the profit book order will get executed and the other buy order of Rs. 1535 will be cancelled. However
incase the price rises to Rs. 1535 first, then your losses are limited since the stop loss order will get
executed and the other buy order of Rs. 1525 will automatically be cancelled.
Options:
For Example:
Call / Put Option - Buy Market Order:
You wish to buy 1 lot size (125 quantity) of SBI in the Option segment at Market Price. Lets consider the
LTP (Option Premium) is Rs. 58.4 and the expiry of the contract is on 27-02-2014. To buy 1 lot size of SBI
with Strike Price 1500, you will need 58.4 (premium)* 125 (Quantity) = Rs. 7300 limit to place your Call/
Put Option Order.