Putting Stop losses for any position is an essential step to ensure that no major losses occur if the view on the underlying goes wrong. You should always place a Stop Loss when trading Intraday or positional. You can use a stop loss in Zerodha by following some easy steps.
Before knowing how to use a stop Loss on Zerodha, let’s understand what’s a stop loss.
A Stop Loss is an order that is placed on top of an existing order to curb the losses. This is done to protect your capital in an event of a “Black Swan Event” or if your view on the underlying asset goes wrong. In the case of a Long position, one can keep the Stop loss at a certain point below the buying price. Similarly, for a Short position, a buying order can be placed as a Stop Loss at a certain price above the entry price.
Using a Stop loss in Zerodha is extremely simple, as all the presets of a Stop loss order are already present. Stop loss orders are generally placed when you place Intraday trades or Swing trade orders. To place a Stop loss in MIS (Margin Intraday Square-off), you can follow these steps:
By following these steps you can place your stop-loss order for any of your open MIS positions. Remember that you cannot enter a Stop Loss in CNC orders which are created on the same day. For that, you need to place an exit order manually from your positions on the shares that you already possess.
You should also pay attention to your stop loss order in case you exit your positions manually. The stop-loss order will remain in the terminal even if the existing position is squared off.
A Stop-loss order is an essential part of trading as it protects your capital from any major draw-downs. One should always place a calculated Stop loss according to your Risk Per Trade while trading Intraday.
When placing a Cover order (CO), there is a mandatory stop loss which has to be entered at the time of placing the order. \
In the same way for any NRML Futures or Options, order you can place a Stop Loss order in the same way as mentioned above.
GTT in Zerodha is an acronym for the Good Till Trigger feature offered by Zerodha that lets the investor select a trigger price and a set of predetermined conditions that as and when are met, an order is placed automatically.
Zerodha Kite is the best app for options trading in India. It is the preferred option among all traders due to its superior features and tools.
Intraday trading on Zerodha can be executed with ease by choosing the type of trades you want to engage in. These could be NIFTY, BANK NIFTY, or future options of companies. Once you choose the respective lot, then choose the type of orders and then buy the shares. Trade them when you see a profit or wait till a specific point till you recover your investment.
Zerodha offers a wide range of services and tools for traders and investors to make their trading experience as seamless as possible. For those wanting to know, What is Zerodha cover order? It's then a unique way to minimize the risk in intraday trading and maximize the profit that one might avail.
Trigger price is the price entered by a trader during stop-loss limit and stop-loss market orders. Let's understand this in detail. In Zerodha following this mechanism is really simple.
Trading in the stock market is a pretentious task given the ups and downs it brings to the table. But for traders, brokerage firms have made life simpler and more comfortable to execute relevant trades more straightforwardly. For the same, we have Bracket Orders (BO) from leading stock brokers like Zerodha that helps in keeping a constant tab on the selling and buying of stocks on pre-determined specifications.
Zerodha Kite allows you to sell shares either at market order or by placing stop loss. The order will be executed at the best available price.
GTT or Good Till Triggered, is a feature of Zerodha that lets users execute trades based on a specific price point. It's quite helpful for those that want to trade in the stock market but have no time to keep track of their investments.
Stop-loss orders are used to limit the losses in case your view goes grown. An SL-M or Stop Loss Market order ensures your position is squared off at the market price if the trigger price is reached. Whereas in an SL Limit order, a separate trigger price has to be added, which when reached will forward the limit price to the exchange.
Head into your Zerodha Streak account, then click on the create option, following which enter all the fields of your choice. Click on the finish button to execute the scrips in your trading strategy.