A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. That is, the stop-loss order will always be based off of the stock’s highest price, which is usually calculated based on closing-day prices rather than intra-day prices. For example: You purchase stock at $25. You set the trailing stop-loss order at 5%. You can use trailing stop loss by using BO orders in zerodha. As soon as the main order is executed, the system will place two more orders (profit taking and stop-loss). Margins for MIS orders will be higher than usual. The way a bracket order works is similar on all platforms. The major point that differs from the two is the trigger price. 1. At a price of $20, the trailing stop will only trigger a sale if the stock drops below $19. In Zerodha you need to place a bracket order to use the feature of trailing stop loss. 2. It’s a great help, BIG thanks for this. For example, you buy Company XYZ for $10. Trailing stop loss becomes important to preserve profit. Your stop loss or target order should be in absolute points and not at the price. If I choose Trailing Stoploss of 200 ticks (10 points) and select Trailing ticks as 40 (2 points). Click here for the latest intraday leverages. It’s a great help, BIG thanks for this. Trailing Stop Loss Zerodha . Traders, We have introduced newer platforms since this post was published. Also read about the trailing stop loss Zerodha After checking out Stop-loss, set the price (which is limit) and trigger price is what makes the order stop-loss order. Trailing Stop Loss in Zerodha Before getting deep into the Trailing stop loss in Zerodha, it is important to know the difference between the stop-loss order and normal order. Trailing Stop-Loss Example You purchase shares of Xerox Corporation (NYSE: XRX) at $10 per share. You set the trailing stop-loss order at 5%. Traders, We have introduced newer platforms since this post was published. BO and CO orders are blocked due to volatility in Equity, F&O, CDS, and MCX. Hello Zerodha Folks, I have been using the bracket order for few days and here is my feedback. L’ordre stop suiveur et l’ordre take profit. In most cases, the best design is to use trailing stop loss along with stop loss. So for example, if you have bought a stock at Rs 100 and you want to limit the loss at 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. So for example, if you have bought a stock at Rs 100 and you want to limit the loss at 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. Bracket order (BO) is a type of order where you can enter a new position along with a target/exit and a stop-loss order. But if the stock goes up to $20, the trigger price for the trailing stop comes up along with it. I think you have the holding of stocks in your demat in ZERODHA. The way a bracket order works is similar on all platforms. Most pertinently, the trailing stop loss order moves with the value of the stock when it rises. If Xerox rises to $20, your trailing stop-loss order will be at $19. Any reverse direction taken by the stock will *not* modify the value. For instance, a sell trailing stop loss order places the stop price below the market price at a fixed point, along with a trailing amount. Trailing stop loss moves in only one direction. A trailing stop-loss is a way to automatically protect yourself from an investment 's downside while locking in the upside. Thus, if the price falls to $9.50, your stock will automatically be sold. 147 and you want to set a sell stop-loss order at 145 then you should enter 2 in the stop loss field. Trailing SL which is optional trails the stoploss price or moves the SL price everytime the scrip moves in a favorable direction by the trailing stoploss value mentioned. Stop Loss automatically cancelled if target is met and target automatically cancelled if Stop loss is hit. But as the shares of Xerox rise, so does your trailing stop-loss. Alternatively, you can use IMPS/NEFT or payment gateway to add funds. When one of the two orders (profit taking or stop loss) gets executed, the other order will get cancelled automatically. If share prices appreciate to $14, your trailing stop-loss order now sits at $13.30. But as the shares of Xerox rise, so does your trailing stop-loss. Set the trigger price to to limit the risk and tap “BUY” Bingo.