Hi All, had a query and wanted to check if theoretically it will work and has anyone tried this ? GTT stop loss order has 2 list of parameters: a) Stop loss side : [sl_trigger_price, sl_price] b) Target side: [target_trigger_price, target_price]
Now say, if we have bought a security at 60 INR and put a GTT trade with the stop loss side as [trigger price = 58, sell price = 56] Now if the price falls below 58 then the stop loss gets triggered and it would try to get a best price to sell between 56-58. Now where it tends to fail is say the last traded price was 57.5 and it got triggered and then the next trade price was 54 so it will not get executed since the price has fallen below the range and it can lead to more loss than anticipated.
In the same case, can we put GTT trade with the stop loss side as [trigger price = 58, sell price = 1], would it then work by fetching any next best price as soon as the last trade price falls below 58 and doesnt necessarily needs to be in range of 56-58
No, putting price=1 would not work, because the lower circuit for an instrument with price as 58 would be much above 1,so the order will be rejected.
If you just want to execute at current market price, without any price protection,just send market orders.
Although this guarantees a fill,but there's a chance of a freak trade.
Although the second option too would have the same problem, because even though the range you give is big,but there's still a possibility that the instrument can gap down directly below your given range , leaving your position open which can increase the losses.
It's your choice,you have to choose according to your risk capability.
Everything has pros and cons.
For further non-technical queries, please contact Zerodha support team.
Thanks, one last comment on your answer, that lower circuit price comment actually was a good one, i guess then we can put the sl price as lower circuit price + 1 , will explore!
If you just want to execute at current market price, without any price protection,just send market orders.
Although this guarantees a fill,but there's a chance of a freak trade.
Or,you can use limit orders as market orders:
https://support.zerodha.com/category/trading-and-markets/product-and-order-types/order/articles/how-to-use-sl-l-order-like-a-sl-m-order
Although the second option too would have the same problem, because even though the range you give is big,but there's still a possibility that the instrument can gap down directly below your given range , leaving your position open which can increase the losses.
It's your choice,you have to choose according to your risk capability.
Everything has pros and cons.
For further non-technical queries, please contact Zerodha support team.
https://support.zerodha.com/
This forum is purely dedicated to technical queries related to KiteConnect APIs.