A regular stoploss-limit order is a type of order where a single order is placed at a specific price. Unlike the regular market order, this is not the market price. To place this order, two specific parameters are needed, the trigger price and the limit price. These parameters should satisfy the following conditions:
- For a BUY order, we need to observe the following:
- The trigger price and limit price should be above the market price.
- The limit price should be greater than the trigger price.
- For a SELL order, the following should be observed:
- The trigger price and limit price should be below the market price.
- The limit price should be lower than the trigger price.
If these conditions are not satisfied, the order may either get placed at the market price, essentially converting it into a regular market order, or may be rejected by the broker as an invalid order.
On placing a regular stoploss-limit order, it goes through various intermediate states...
