I am pretty congused with the stop loss thing
i am taking a sample scenario and posting relavent orders i placed
plz tell if these are correct
The scenario is :
Ashok Leyland closed at 33.8 today
now, in the night i want to place orders for tomorrow that will be executed automatically
1)i want to buy the share if it comes down to 25 tomorow (i know thats highly rare, but leave the numbers, please help with the understanding)
so i placed a BUY STOP LOSS ORDER like this
Is the above order correct or should i place a normal buy order with limit value and without stop loss?
2) Now i want to sell it if it reaches 35 tomorrow, for that i am the following SELL STOP LOSS ORDER
What if i place a normal sell order here without stoploss but WITH limit price?
3)And in case after buying the shares and the price is falling too low, then to protect myself i am placing another SELL STOP LOSS ORDER to sell at 22.5
After entering the 3 orders the summary of orders looks like this
==============================================
Tell me if the above values i entered are correct or not for the scenario mentioned.
Some insights: (plz verify my below understandings are also correct or not)
The buy order (order1) may be executed tomorrow or not depending on the price reaching 25.05 . If order1 is executed due to the price falling below 25.05 then only there is a chance for order2 or order3. Else they is no chance for them
Once the Buy order1 is executed, the a)the share may rise to execute order2 or b) the share may fall to execute order3 or c) the price may not vary much, and both order2 or order3 are not executed.
Some senior may please verify the above orders screenshots and tell whether the limit and target prices are correct or not.
I hope after the queries are answered, then these screenshots along with others answers will be a 1-stop guide to understanding stop loss transactions to all BEGINNERS
i am taking a sample scenario and posting relavent orders i placed
plz tell if these are correct
The scenario is :
Ashok Leyland closed at 33.8 today
now, in the night i want to place orders for tomorrow that will be executed automatically
1)i want to buy the share if it comes down to 25 tomorow (i know thats highly rare, but leave the numbers, please help with the understanding)
so i placed a BUY STOP LOSS ORDER like this
Is the above order correct or should i place a normal buy order with limit value and without stop loss?
2) Now i want to sell it if it reaches 35 tomorrow, for that i am the following SELL STOP LOSS ORDER
What if i place a normal sell order here without stoploss but WITH limit price?
3)And in case after buying the shares and the price is falling too low, then to protect myself i am placing another SELL STOP LOSS ORDER to sell at 22.5
After entering the 3 orders the summary of orders looks like this
==============================================
Tell me if the above values i entered are correct or not for the scenario mentioned.
Some insights: (plz verify my below understandings are also correct or not)
The buy order (order1) may be executed tomorrow or not depending on the price reaching 25.05 . If order1 is executed due to the price falling below 25.05 then only there is a chance for order2 or order3. Else they is no chance for them
Once the Buy order1 is executed, the a)the share may rise to execute order2 or b) the share may fall to execute order3 or c) the price may not vary much, and both order2 or order3 are not executed.
Some senior may please verify the above orders screenshots and tell whether the limit and target prices are correct or not.
I hope after the queries are answered, then these screenshots along with others answers will be a 1-stop guide to understanding stop loss transactions to all BEGINNERS
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