All About SL / Target Alerts And Orders?
Know the different types of order types in Intraday and Long-term orders. Know more in detail here.
When you place your order/trade from the Investmint app, you can choose from:
- Intraday
- Long Term
Out of the two, if you choose intraday:
- You can optionally add stop loss and target orders. These will be separate orders on your brokerage account, which will be automatically triggered if the prices reach that specific level.
- On the other hand, if you place a manual order (buy/sell) from your brokerage account, you will have to place the stoploss & target order manually.
In the case of intraday models like Back Up and Quick Short, you will get the stop loss orders when you place a trade from the app.
- Note: Monthly models don’t have a stop loss order, as there is a possibility that stock prices can bounce back and turn profitable within a time frame of one month. Also, these models have multiple stocks in them, so even if a stock is substantially down, its overall allocation might be small, which won’t have a huge impact on your entire portfolio.
Q. What Happens if your SL or Target is not met?
After your order is placed with your broker, there is a possibility that neither your target nor your stop loss is met throughout the day. In that case, you must manually exit your position and cancel the stop loss and target orders.
However, if you don’t square off your order manually, your broker will automatically square off your order. In that case, you will be charged a penalty for auto square-off. To avoid paying the additional charge, square off your position at or before 3:15 p.m.
Q. What happens if one of the orders (Stop Loss or Target) is met?
In a scenario where only one order is met, the other order will not be automatically cancelled by your broker before 3:30 p.m. Do check with your broker for their exact procedure. You will need to cancel the other order manually, or it may get triggered in a volatile market.
