Detailed Support for Stop Loss Orders | Angel One (2024)

It may happen if you have a pending Stop-Loss (SL) or an exit order already. With an already pending stop-loss or exit order, you will need extra funds to be able to place a duplicate SL/exit order. If you do not have this extra fund in your account, then your duplicate exit order will get rejected. That’s why we inform you while exiting if there’s a Pending SL/exit order against a position, to avoid any duplicate orders and rejections.

Chances are that the market price did hit the stop-loss price, albeit momentarily and without you being able to spot it at that moment. Within a second, prices can change multiple times and not all of them are relayed to the Brokers by Exchange, especially during high volatility. As a result, such momentary price fluctuations are not seen anywhere. Price matching and execution of the orders is done by the Exchanges and not the Broker.

Stop-loss is a tool that investors use to minimise the loss in a trade. Some traders define it as an advance order, which triggers an automatic closure of an open position when the stock price reaches the trigger price level.
Stop loss helps minimise losses but also limit profits from a trade.

A Trailing Stop-loss is an order that lets you set a maximum value or percentage of loss you can incur on a trade. If the securiy price rises or falls in your favour, the trigger price jumps with it at the set value or percentage. If the security price rises or falls against you, the trigger price stays in place depending on the nature of the order.

Stop-loss can be your real saviour during a volatile market condition. A price level set at the beginning of the trade allows traders to close their position automatically when the stop-loss is reached. Squaring off takes place at the next price available at the trigger price level and helps limit losses.

The 1% rule defines the maximum limit of risk one can take in a trade or the risk-per-trade. It implies adjusting your position so that total loss doesn’t cross 1% of your trade value when the stop-loss is triggered. The 1% rule helps avoid significant losses.