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 the last traded price reaches the trigger price, the stop-loss order is eligible to be executed on the exchange.
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 ...
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.
What are price bands?
The exchanges have set a price band for all securities. The price bands act as a limit beyond which the price is not allowed to move on a particular day and the exchanges will reject orders that are set outside the minimum and the maximum of the ...