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What is Stop Loss Trigger Price in ICICI Direct?

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The Stop Loss Trigger Price (SLTP) is a price entered at the time of placing a Stop-loss order. When the price of the security reaches the SLTP price, the stop-loss order is activated and sent to the exchange for execution.

A stop-loss (SL) is an advance order type that is used to limit the loss of a position. An SL order remains passive till the SLTP is reached. Once the price reaches the SLTP, the order gets activated and placed to the exchange.

Note that the SLTP is not the price at which the order gets executed. The order is executed at the limit price. The order only gets activated and sent to the exchange when the share price hits the trigger price.

Example:

You buy SBI shares at Rs 525 expecting its price to rise in the coming days. However, you're also concerned about the prices going down. In such a scenario, you can place an SL order to limit your losses, if the prices go down. While placing the SL order, you have to enter an SLTP (Stop loss trigger price) and limit price. Say you put an SLTP of Rs 510 and a limit price of Rs 500. Your order will get activated and sent to exchange as the SBI price reaches Rs 510. As soon as the exchange finds a buyer at a limit price of Rs 500, the SL order gets executed. This saves you from the losses you may incur if the share falls further and thus limit your maximum loss.

 

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3 Comments

3. A  Aug 21, 2020 20:21 I Like It. | Report Abuse Reply
I option and option plus trading sl limit and take profit all things is confusing in ICICI direct
2. asif ansari  Jul 16, 2020 00:39 I Like It. | Report Abuse Reply
iam already confuse in stop loss trigger price limit price in icicidirect any error reflecting not set SLTP oder here i read ???? its not working properly or fully surprising iam because its always facing this problem its tru or not
SLTP NOT WORKING ICICIDIRECT
1. Krishna Bhattacharyya  Jun 11, 2020 17:26 I Like It. | Report Abuse Reply
Dear writer on STOP LOSS for ICICIDIRECT orders, have you ever tried to PLACE a STOP LOSS order in ICICIDIRECT.COM ? The answer is NOT, you have no practical knowledge, so sorry.
There is NO STOPLOSS facility in ICICIDIRECT.COM, there is one STOP LOSS TRIGGER, but THAT DOES NOT WORK, the ICICIDIRECT SOFTWARE is pure bull shit. This is only for your infomation.
BTW, don't call me - I am not interested in opening any account with you or with anyone.