How do I place sell VTT order with Stop loss and target?
Sell VTT is used to exit current stock holdings or short selling the futures and options contracts. Consider the example in the image below:
Let’s assume you are trying to sell an INFY contract as per your bearish view on INFY, thinking that within a year, INFY would fall from its current price. To profit from this, you place a VTT order with entry, stop loss, and target prices as per the snapshot below.
In the given example:
1. Entry Order:
o Trigger Price: Set to 1650.
o Current Price: 1600.45.
o Action: If the trigger price of 1650 is hit on the exchange, a limit sell order at 1650 is placed.
o Execution: This order will be executed if a buyer is available at 1650.
2. Stop Loss and Target Orders:
o Stop Loss (SL) Trigger Price: Set to 1700.
o Target Trigger Price: Set to 1520.
o Action: Once the initial sell order is executed, the stop loss and target prices become active.
o Execution:
§ If the SL trigger price of 1700 is hit, a limit buy order at 1700 is placed.
§ If the target trigger price of 1520 is hit, a limit buy order at 1520 is placed.
o Order Cancellation: The other trigger (SL or target) is cancelled when one is hit.
3. Optional Orders:
o You are allowed to place either the stop loss target order or both, as you prefer.
Steps to Place a Sell VTT Order with Stop Loss and Target:
1. Login to 5Paisa: Access your trading account.
2. Navigate to VTT Orders: Locate the section for placing VTT orders.
3. Select Sell Order: Choose the option to place a sell VTT order.
4. Enter Initial Sell Details:
o Trigger Price: Set to 1650.
o Sell Price: Set to 1650.
5. Set Stop Loss (SL):
o Trigger Price for SL: Enter 1700.
o SL Price: Enter 1700.
6. Set Target Price:
o Trigger Price for Target: Enter 1520.
o Target Price: Enter 1520.
7. Choose Order Type: Decide whether each leg (initial sell, stop loss, and target) should be placed at a limit price or market price.
8. Review and Confirm: Verify all details for accuracy. Confirm and place your VTT order.
By following these steps and the provided example, you can successfully place a sell VTT order with defined stop loss and target prices.
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