most of time stop loss we set on intraday open position works.
System square off position as given trigger price reach
But for few trades dhan system not do it.
Is there a way to ensure 100% success ?
Example
intraday sell open position taken
stop loss trigger price set at 786.5 and limit 787.00
at that time price was 770.
after some time sudden jump in price with quick candles
in a flash price reach 795
system not done square off
price keep going up and
in case not reach back 786 whole day
then loss keep increasing…
how to manage such rare cases as
one such bad trade like this can eat up all gains of day ?
Is there way out for guaranteed stop loss execution ?
A stop-loss limit can be helpful for those who want to manage risk within a desired range, unlike a stop-loss market order which gets executed immediately at the market price once triggered (not allowed in options as per exchange). When using a stop-loss limit order, it’s recommended to set a range sufficient to prevent situations where the stop-loss is triggered but the order remains open.
Let’s take a step back and see how a stop-loss limit order work. For example, if you set a sell stop-loss order with a trigger price of Rs. 91 and a limit price of Rs. 90.90, here’s what happens: when the order is triggered at Rs. 91, a sell limit order is sent to the exchange for execution at the best available price of Rs. 90.90 or higher, but not below the limit price.
The risk in these situations is because of sudden market declines caused by volatility, expiry, lack of liquidity, special events, and so on. If there is high bid-ask spread and there are multiple market orders, the scrip price may jump a point or two, and there is a possibility that between the time your order is triggered and limit price order goes for execution, the LTP is already below your limit price and hence your order goes in pending.
Now the question is whether there is a guaranteed way to prevent this situation. Well Yes & No. You may keep a very high gap between your trigger and stop loss price, to ensure your limit order doesn’t get skipped but then a very high range defeats the purpose of a tight stop loss. You can take the best estimate for a tight gap by checking for liquidity of the scrip you are trading in, and the bid-ask spread for the scrip. Low liquidity will most probably have high bid-ask spread, and would need higher gap. A highly liquid scrip will have lower bid-ask spread and can have lower gap. And you may also take into account sudden moves in market and keep gap a few points higher to be on safe side.
Today, Piramal Pharma made a low of 136.1 and I have a FOREVER OCO stop order placed at 136.25. I really wonder whether these FOREVER OCO orders are getting triggered correctly or not. Please advise. Thanks.
We have shared the general information above on how the stoploss limit works, and we have monitored this works seamlessly. For account specific queries, request you to connect with Customer Service on help@dhan.co
Earlier this month, I ran into the below situation and I did sent an email to your help desk.
I have a forever stop market order on NSE:TI to sell with a trigger of 253 on NSE. Stock hit 253 around 11:35 AM on 5 minute candle but forever stop market order didnt trigger. Response from your helpdesk is as below.
Let’s assume that low of that day for NSE:TI is 253 and you havent received tick of 253 based on above explanation.
Having said that,
I am referring to Stop Loss Market order with a trigger at 136.25 in above question. Forever OCO stop market order was not triggered at all. I did sent a message to help@dhan.co and I was referred to the above thread titled “charts-on-dhan-what-happens-behind-the-scenes-and-how-charts-work-exactly”.
FOREVER Stop Loss Market order on PPLPHARMA which is part of OCO triggered yesterday (17th Jan) however FOREVER Target Market order which is part of OCO is not cancelled yet. I can still see it as of this morning (18th Jan).
You guys are hiding the issue and not trying to resolve the issue, nor have a dialog with the customer and build trust. Just ignoring the issue and troubles of customer. Very much disappointed.