Stop-Loss cum Target Order?

#1
If I have a stock, say, Ranbaxy at 430. I want to set a stop loss trigger at 425 to add a limit of 424. But I want to also add a take profit limit at 435 at the same time. Can I do all this at the same time? Please also recommend some best practices for such scenarios.
 

Alchemist

Administrator
Staff member
#2
If I have a stock, say, Ranbaxy at 430. I want to set a stop loss trigger at 425 to add a limit of 424. But I want to also add a take profit limit at 435 at the same time. Can I do all this at the same time? Please also recommend some best practices for such scenarios.
You will have to place two separate orders and then manually cancel one order if the other gets filled.
 
#3
Thank you. I didn't know if I could (and the markets were closed). While I could see the possibility of multiple buy orders viable (provided I had enough cash), multiple sell orders for the same lot sounded like the sort of thing that the broker would discourage. If one sell order is fulfilled, then the other should be automatically cancelled, right?
 

Alchemist

Administrator
Staff member
#4
If one sell order is fulfilled, then the other should be automatically cancelled, right?
No, it won't be cancelled. You will have to do it yourself.

ICICIDirect offers "One-Cancels-the-Other" option with their MarginPLUS product.

If the stop-loss order is triggered, the target order will be cancelled.

If the target order is filled, the stop-loss order will be cancelled.

 
#5
You are right. I had 200 shares of X that I first offered to sell at 271. I then offered to sell it at 269 and both orders were considered valid. 200 shares were sold at 269.

Now, I only had 200 shares to begin with and as you said, the order to sell at 271 was still considered "pending". This is even though I have no shares of X to sell. This seems a little odd. What will happen if somebody offers to buy them at 271 from me?

Thank you.
 

Alchemist

Administrator
Staff member
#8
How will I deliver something that I don't have? Will my broker buy at market rates and do it for me? What if it's an intraday trade?
If you don't deliver the shares, the shares will be bought in an auction and you will have to pay the auction bill.

There are many threads on auctions and short delivery on this forum. Check them.

If you close the position on the same day then you don't have to deliver the shares.
 
#10
Stoploss limit

Hi Dinesh. This is a very common scenario.You can do that. But first you need to have money for placing an extra order though it's an exiting order. Also you need to monitor it carefully since there is a possibility for both order to get executed (if the market moves in both directions). If you have any other queries about stop loss limit or SLM orders,you can refer this page.It explained me better. Hope it would do the same to you.Good luck

Z-Connect • Stop Loss orders - Limit/Market | Home
 
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