How to use the SL(stop-loss) limit like Stop-loss (Stop-loss) order in the market?

SL-Limit order is an order where you need to input a trigger price and a limit price. For Buy Order -

• Trigger price has to be greater than the Current Market Price
• Limit price has to be greater than the Trigger Price

As soon as the trigger price is hit, a limit order is sent to Exchange with the entered limit price. If the price available on the order book is less than or equal to the limit price, the order will get executed at the available price on the order book (market price). Thus, this replicates the feature of a SL-Market order.

For Example - if the current market price of the stock is Rs. 100, the trigger price has to be more than Rs. 100 (let’s say - Rs.105), and the limit price has to be more than Rs. 105 (let’s say - Rs. 110). As soon as the price reaches Rs. 105, a limit order with price Rs. 110 is sent to Exchange. If there is an offsetting order available at or below Rs. 110, the order will get executed at the market price.

For Sell Order-

• Trigger price has to be less than the Current Market Price
• Limit price has to be less than the Trigger Price

As soon as the trigger price is hit, a limit order is sent to Exchange with the entered limit price. If the price available on the order book is greater than or equal to the limit price, the order will get executed at the available price on the order book (market price). Thus, this replicates the feature of a SL-Market order.

For Example - if the current market price of the stock is Rs. 100, the trigger price has to be less than Rs. 100 (let’s say - Rs.95), and the limit price has to be less than Rs. 95 (let’s say - Rs. 90). As soon as the price reaches Rs. 95, a limit order with price Rs. 90 is sent to the Exchange. If there is an offsetting order available at or above Rs. 90, the order will get executed at the market price.