Q1 - What is Trailing Stop-loss Order?

Trailing stop-loss order is a feature for the users whereby the user will be able to place a stop-loss order, which can be trailed to maintain the precise price below or above the market price. This stop-loss order will be adjusted continuously on the basis of fluctuations in the market price, thereby maintaining the same price below or above the market price. This is called as trailing stop-loss order.

Q2 - How does trailing stop-loss order feature works?

1) Customer places a Sell trailing stop-loss order with a stop-loss price of Rs48 and limit price of Rs45 having trailing price as Rs2 to be maintained with the market rate Rs50.This order is send to exchange immediately as normal stop-loss order. 2) This stop-loss price ie Rs48 is trailed only when the market moves upward from Rs50, such that Rs2 is maintained with the current market rate. This trailing is done at the Sharekhan Application Level. 3) As soon as the market moves downwards, such that it reaches the trailed stop-loss price ie after the market rate reaches Rs60, if it falls to Rs58(trailed stop-loss price). The condition becomes viable for trigger and the order is modified from the stop-loss to limit order at Rs55 in exchange.

Q3 - What happens to stop-loss trailing order, which gets triggered and doesn’t get executed?

Once the stop-loss trailing order is triggered and sent to exchange, the trailing would stop immediately irrespective of whether it’s executed at the exchange.

1) In trailing stop-loss order, the book profit trigger order or stop-loss order is triggered as and when the price is reached, which may or may not be executed at the exchange.

2) In trailing stop-loss order, the book profit trigger order is triggered as and when the price is reached . system will try to exit position at best price.