+ Expand AllTrailing Stoploss FAQ's

  • QWhat is trailing Stoploss order?
    A

    Trailing Stoploss order allows you to place stoploss, which will be adjusted automatically as per the movement of stocks. This will be done by keeping a spread (above/ below) as it would have been defined while placing the order. Trailing stoploss helps you to reduce loss in case of any adverse market movement.

  • QHow it works?
    A

    For example: You want to buy a stock at Rs. 100 and to reduce the loss you would want place stoploss order below Rs.2. To do so you can place buy order at Rs. 100 with a spread of Rs. 2.

    Order type : Buy Trailing stoploss order

    Stock Price : 100

    Buy Price : 100

    Spread : 2.00

    System will automatically calculate stoploss price : (100-2) = 98

    Once order is traded @ 100, the system will trail your stoploss order as per table given below

    Time 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45
    Stock Price 100 101 102 101 102 103 102 101
    Trailing Stoploss order 98 99 100 100 100 101 101 101


  • QWhat is spread?
    A
    A Spread is the minimum difference that you want to maintain between stoploss order trigger price and market price.
  • QWhat would happen if the market price goes up?
    A

    If the market price goes up the Stoploss trigger price will increase. This will be done after maintaining the spread difference between stoploss trigger price and the market price.

  • QWhat if market goes down?
    A
    If the market goes down the Stoploss order trigger price will not be affected, it will remain same. There will be no change in the stoploss order trigger price.
  • QWhat happens when price reaches stoploss trigger price?
    A
    Once the price reaches the Stoploss order trigger price, it will be sent to the exchange as a market order and will be traded.
  • QWhat is the validity of Trailing Stoploss orders?
    A
    The validity of the Trailing Stoploss orders is for a day only.
  • QIs Trailing Stoploss order available for all exchanges?
    A
    Yes you can place the Trailing Stoploss order in both exchanges i.e. NSE / BSE.
  • QIs Trailing Stoploss order available for cash and futures segment?
    A
    Yes, the Trailing Stoploss order available for cash and futures segment.
  • QCan I place sell orders with Trailing Stoploss orders?
    A

    Yes, you can place sell orders with Trailing Stoploss orders

  • QWhat is the maximum possible spread?
    A

    The maximum spread varies as per scrip LTP and cannot exceed the scrip’s day trading range.

  • QAre there any additional charges for Trailing Stoploss facility?
    A

    The Trailing Stoploss facility is available to all online clients without any additional charges.

  • QWhat if I have to square off my position?
    A

    To square off your position you need to first cancel Trailing Stoploss order to avoid a duplicate trade.

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