How to modify the stop-loss?
In trading, stop-loss is one of the integral parts that help you in risk management. Generally, stop loss is placed along with the multi-legged orders such as Cover Orders and Bracket Orders. Once CO or BO is placed, you can easily modify the Stop-loss.
Let us understand using an example.
Mr. Bhaskar, a client of FYERS, is placing a Bracket Order in Manappuram Ltd. trading at the market (₹90.95) with a stop-loss set at ₹88 as shown in the image below:
As we can see, the order will be placed successfully as shown in the image below:
However, Mr. Bhaskar wants to trail his stop-loss to ₹89 as the market was moving in his favor. All he needs to do is drag and drop the Sell Stop order to ₹89, a order window will pop up as shown below:
The price you had dragged to will be displayed under the Trigger Price. Change or modify the stop loss if necessary and click on ‘Modify 1 Qty’. The Stop-Loss will be successfully modified.
What is the stop-loss trigger price?
Stop-loss orders are designed in such a way that the order remains inactive until the last traded price reaches the limit order price. The stop-loss trigger price enables the user to define at what price the stop loss order should get activated. Once ...
Why doesn't FYERS offer trailing stop loss?
At FYERS, we prioritize effective risk management and transparency in our trading services, which is why we do not offer trailing stop loss orders. Here are the key reasons for this decision: Simplified Risk Management: Our primary focus is on aiding ...
What is a trailing stop-loss order?
A trailing stop limit order is designed to allow an investor to specify a limit on the maximum possible loss, without setting a limit on the maximum possible gain. These orders continuously recalculate the stop-loss price at a fixed amount below the ...
What is the effect of the trailing stop-loss order?
This order enables the investor to state the maximum possible loss without sacrificing the profits. Such orders help investors to lock in profits if the share price moves in their favour as the stop loss price will automatically recalculate to ...
What is a stop-loss order?
It is an order to exit an open position when it reaches a specified price. These orders are designed to limit the investor’s loss.