Money management is one of the main pillars of your success in stock market. A person who understands money management very well is surely going to achieve success in stock market. Stop loss is an important part of money management by which you limit your losses. If you are new to Zerodha trading platform and don’t know how to place stop loss order in Zerodha then in this post we are going to learn that.
It is very easy to place stop loss order in Zerodha, in fact, it is one of the easy to use trading platforms in India.
To place your stop order in Zerodha, you will be required to go to Positions page and there you can place your stop loss order.
As I have discussed in a separate dedicated post on stop loss (you must read that post), there are two types of stop loss orders in Zerodha: SL and SL-M.
The main difference between them is in SL order you will be required to enter Trigger Price and Price at which you would like to exit whereas in SL-M order you only need to enter Trigger price and after reaching at your set trigger price your order will be required at current market price.
Here are the steps to place stop loss order in Zerodha Kite
In the following video you will learn:
- How to place stop loss order in Zerodha?
- How to put trailing stop loss in Zerodha?
- Importance of Stop order in share market.
- Why you should never trade with it?
Here are the written instructions:
- First of all, go to Positions.
- Now hover your mouse over a running position (on which you want to add stop order) and then click on Three dots next to the instrument name.
- Click on EXIT.
- A pop-up window will appear on your computer screen. Now click on SL and then enter a Trigger Price (It must be greater than you enter in the Price Field in case SELL stop loss order and vice versa in case of BUY Stop Loss Order in Zerodha).
- After entering the prices, click on BUY button or SELL button; depending upon the order type.
- That’s it. You have successfully put stop loss after buying in Zerodha. You can find your stop order in Orders section.
Important: Never forget to cancel your stop loss order after closing a trade; otherwise, it will initiate a new position. Or in other words a new trade will be executed.
How to put trailing stop loss in Zerodha?
With the help of trailing stop loss in Zerodha, you can decrease your potential loss in a position and increase profit probability.
To place trailing stop loss in Zerodha, you don’t need to anything different from placing normal stop order. Just to trail your stop loss, you will need to modify your existing stop loss order in Zerodha. Note: You don’t need to place new STOP Order, you need to modify it.
To know how to trailing stop loss, watch above embedded video at 08:15 minutes. Here are the steps to trail your stop order:
- First place normal stop loss order in Zerodha.
- Once you reach at a point where you think you should trail your stop order, go to Orders then under Open Orders, hover your mouse over pending stop order.
- Click on the three dots next to entity name and then click on Modify.
- Enter you new prices and hit Modify button.
- That’s it. You have successfully trailed stop loss in Zerodha.
- Repeat the same steps when you need to trail your stop limit order.
By following the above mentioned steps, you can put trailing stop loss in Zerodha.