Zerodha stock broker CEO gives this tip to save money in stock market and avoid loss - YP Buzz Stocks / Finance

 YP Buzz - 

                   Where trading is important to cover all uncontrollable risks. As of September 27, Stoploss market (SL-M) orders will not be available on the National Stock Exchange (NSE) for options, therefore, Zerodha founder and CEO Nithin Kamath shared how investors can use the SL (stop loss) order as the SL-M order.

                                      
Stop loss

To protect from impact costs due to informal trading, the brokerage suggested that investors should use the order limit instead of Market, & SL instead of SL-M. One can use Limit & SL as a way to provide faster performance while also providing market protection.


However, Kamath on his tweet said many brokerages around the world do not support SLM and orders in the options market due to high volatility and that is why it has a huge cost impact.


Where trading is important to cover all uncontrollable risks. As of September 27, Stoploss market (SL-M) orders will not be available on the National Stock Exchange (NSE) for options, so Zerodha founder and CEO Nithin Kamath shared how investors can use it. SL (stop loss) order as SL-M order.


To protect from impact costs due to informal trading, the brokerage suggested that investors should use the order limit instead of Market, & SL instead of SL-M. One can use Limit & SL as a way to provide faster performance while also providing market protection.


However, Kamath on his tweet said many brokerages around the world do not support SLM and orders in the options market due to high volatility and that is why it has a huge cost impact.


Trading at a price far higher than the current market price is called 'unconventional trading'. Unusual trading occurs due to deep market volatility (low inflation). Unusual trading is also possible if your trade is similar to a large market order. When you place a market order, there is always a natural risk of losing money due to unfamiliar trading, Zerodha explained on the support page.


However, the brokerage went on to explain that a limited order guarantees a price action (avoiding odd trading), but there is no guarantee that the order will be fulfilled. “But there is a way to get the best out of both types of orders, which is to enjoy limited order price protection (which is why there is no uncommon trade) and also enjoy a full order order fulfillment - Use the Stoploss limit order as a Stoploss limit order. , '' he said.


A Stoploss Order is a type of order in which you specify a price in which a limit order or market order is placed. These causes are placed on the exchange and not within the broker systems.


Similar to how a limit order can be used as a market order, you can also use the SL - L (stop limit limit) order as the SL-M (stop market market) order. To do this, you need to make sure you set a limit, higher or lower than the trigger value depending on whether you intend to buy or sell.


Thanks & Regards

 YP Buzz

Post a Comment

0 Comments

-->