Stop-loss orders are designed to minimize losses on Buy / Sell transactions.
In a Stop Loss - L (SL-L) order, you need to specify both a trigger price and a limit price. The order will be activated once your trigger price matches the prevailing market price and then as per your specified limit price your order will be considered for execution.
The trigger price should be greater than your limit price. For instance, if your limit price is Rs. 400 and your trigger price is Rs. 405, the order will be activated as soon as the market price reaches your specified trigger price your order will be activated and considering your Limit price your order will be executed at Rs.400 or any best rate available above Rs.400.
Example: If you purchased Tata Motors stock at Rs. 425, anticipating an upward price moment, but the stock price starts to fall below the buy price. Since this price move was not expected, you may choose to exit your position by placing a Stop Loss Sell order which will help you to minimize your loss.
Follow the below steps to place SL- L order:
Login to your mStock account >Go to your Watchlist >Search for Stocks or Contract >Click on Buy/Sell Order>Click on Trigger>Enter trigger price & limit price
The trigger price activates the order, while the limit price is where it executes.
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