So if you had bought an Index call option at ₹80 and stop-loss at ₹70, a freak trade at ₹50 would trigger your stop-loss order there is no way to avoid triggering a stop-loss order due to a freak trade. "If you have placed stop-loss orders, freak trades on the exchange can trigger your pending stop-loss orders. Cover Orders (CO) - both brokers provides Cover Orders (CO). The difference comes with the advance order type like cover order, bracket order, AMO and GTC order. All the brokers provide CNC Order, MIS Order, NRML Order. Such an order is called 'Stop Loss', as you are placing it to stop a loss more than what you are ready to risk.Įarlier, in August, Nithin Kamath also suggested the use of stop-loss limit orders over stop-loss market orders, especially when trading contracts with a shallow market depth. Order Type - Compare Zerodha with Fyers on offerings of order types. For instance, if you have bought a stock at ₹200 and you want to limit the loss to 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. This is an automatic order that an investor places with the broker/agent by paying a certain amount of brokerage.
It is used to limit loss or gain in a trade.
Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. This should help avoid freak trades and reduce its impact significantly. Starting Sept 27th, Stop-Loss Market (SL-M) orders won’t be available for options.
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