How to set stop loss in zerodha me stop loss order kaise lagaye

How to set stop loss in zerodha me stop loss order kaise lagaye

A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. For instance, if you have bought a stock at Rs 100, and you want to limit the loss at 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. Such an order is called ‘Stop Loss’, as you are placing it to stop a loss more than what you are ready to risk

types of stop loss order zerodha kite

There are 2 types of Stop-Loss orders:

1. SL order (Stop-Loss Limit) = Price + Trigger Price
2. SL-M order (Stop-Loss Market) = Only Trigger Price
3. let me explain in Hindi for what actually meaning on stop loss in share market. we will go through stop loss example also,
4. Case 1 > if you have a buy position, then you will keep a sell SL, like stop loss in a long position.
5. Case 2 > if you have a sell position, then you will keep a buy SL, like stop loss in short sell.

In Case 1,

if you have a buy position at 100, and you wish to place an SL at 95.

1. a. SL-M order type — You will place a Sell SL-M order with trigger price = 95. Here, when the price of 95 is triggered, a sell market order will be sent to the exchange and your position will be squared off at market price.
2. b. SL order type — You will place a Sell SL order with price and trigger price. Since your order needs to be triggered first, the (trigger price ≥ price.) Here, this order type gives you a range of the Stop-Loss.

Let’s assume a range of Rs 0.10 (10 paise). Here, you can keep trigger price = 95 and price = 94.90.

When the price of 95 is triggered, the sell limit order is sent to the exchange and your order will be squared off at the next available bid above 94.90. So, your SL order may get executed at 95 (or higher) or 94.95 but not below 94.90.

The disadvantage of this order is that if the market falls steeply, then after 95 is triggered and before the Sell Limit order of 94.90 is sent to the exchange if the stock price is already below 94.90, then your Stop-Loss order will still be open and your losses could be much higher.

how to set stop loss in kite zerodha?

setting stop loss in share market is very easy and quite useful for trading. Internet Friend YouTube channel Explain In Hindi has posted video on [Hindi] How to set stop loss in kite zerodha in Hindi. you can also watch this video below on YouTube.

What is the trigger price in a stop loss order at Zerodha?

Trigger price is the price at which is your buy or sell order becomes active for execution at the exchange servers. In other words, once the price of the stock hits the trigger price set by you, the order is sent to the exchange servers

In Case 2,

if you have a sell position at 100, and you wish to place an SL at 105.

a. SL-M order type — like stop loss in long position. You will place a Buy SL-M order with trigger price = 105.

Here, when the price of 105 is triggered, a buy market order will be sent to the exchange and your position will be squared off at market price.

b. SL order type — like stop loss in short sell. You will place a Buy SL order with price and trigger price. Since your order needs to be triggered first, (the trigger price ≤ price.) Here, this order type gives you a range of the stop-loss.

Let’s assume a range of Rs.0.10 (10 prize). Here, you can keep trigger price = 105 and price = 105.10. When the price of 105 is triggered, the buy limit order is sent to the exchange and your order will be squared off at the next available offer below 105.10. So, your SL order may get executed at 105.05 or 105 but not above 105.10.

what is Trailing Stop loss in share market zerodha kite

Many people are searching on Google for how to put trailing stop loss in zerodha. Trailing stop loss is other fantastic way to boost your profit. something like cut your losses and hold the winning trade. Here’s how it works.

When the price increases, it drags the trailing stop along with it. Then, when the price finally stops rising, the new stop-loss price remains at the level it was dragged to, thus automatically protecting an investor’s downside, while locking in profits as the price reaches new highs. Trailing stops may be used with stock, options, and futures exchanges that support traditional stop-loss orders

Example Trailing Stop loss in share market zerodha kite

To better understand how trailing stops work, consider a stock with the following data:

• Purchase price = $10
• Last price at the time of setting trailing stop = $10.05
• Trailing amount = 20 cents
• Immediate effective stop-loss value = $9.85

If the market price climbs to $10.97, your trailing stop value will rise to $10.77. If the last price now drops to $10.90, your stop value will remain intact at $10.77. If the price continues to drop, this time to $10.76, it will penetrate your stop-level, immediately triggering a market order.

Note:-
1. This article is taken Reference From YouTube channel — Explain In Hindi
2. Sole Purpose of this article is to collect information on how to put trailing stop loss in zerodha and how to set stop loss in share market.