A stop-loss order can either be a “buy” order or a “sell” one and is placed to limit losses in case the market goes against the investor’s prediction. The Zerodha Stop Loss orders are divided into two major categories – stop-loss limit order and stop-loss market order. In this article, you’ll learn how to place stop loss order in Zerodha Kite.
As already mentioned, stop-loss order is one of the Zerodha order types where you can enter the buy or sell value to square off position to minimize the loss in trade.
A stop-loss limit order includes a limit price at which the order shall be executed as well as the stop-loss trigger price to limit losses. Whereas, a stop-loss market order just includes a stop-loss trigger price.
Let’s understand the method of placing the Zerodha order with stop loss.
How To Put Stop Loss In Zerodha Kite?
You may either place a “Sell” order or a “Buy” order on the Platforms of Zerodha trading. But before we begin to discuss these, please note that you must have a Zerodha Account (either a Zerodha Free Demat Account or a Trading one) to be able to place stop-loss orders or any order, for that matter, on the Kite trading platform.
How to Place Stop Loss Order in Zerodha Kite for Sell Order?
Wondering how to place stop loss in Zerodha Kite for sell options. Well, you can easily get the process done with CNC and MIS in Zerodha.
Now, when you put a stop loss on your “sell” intraday order or MIS order, your stop-loss will be squared off as a buy order at 3:20 pm which is the Zerodha Square Off Time for intraday trades.
For CNC i.e. delivery trades, there are usually “buy” orders which you hold for some time before selling them out. However, if you have bought an order on CNC, you can sell the shares on the same day and your order will be treated as an intraday order.
Now coming back to stop-loss “sell” orders on Zerodha, you can either place them via Zerodha Kite mobile app or the Kite web.
Here’s how to Place Stop Loss order in Zerodha Kite for “sell”
Log in to kite mobile app and open your watchlist
Select the stock you wish to sell from your watchlist
Once you click on a particular stock, it’s entire detail (such as market depth, bid, number of orders, offers, and quantity) along with the “buy” and “sell option will appear
Click on “sell”
Fill in the quantity of stock you wish to sell and select the “MIS” box – since we are carrying out an intraday trade
MIS stands for “Market Intraday Square Off” hence, you will have to square off your open “sell” position to “buy” position before the market closure
Now, under the order type, you will see various options. Select SL (stop loss) as your order type
Now this is a stop-loss limit order, therefore you need to set a “stop-loss trigger price” and a “limit price”
Once your stock hits the trigger price, the order will be executed on the limit price set by you. Such orders not just limit your losses but also provide a good margin.
Further, you may also use SL on advanced orders under the “variety” section which contains BO, CO, and AMO
How to Place Zerodha Buy Order With Stop Loss?
A stop-loss buy order Zerodha can either be marked as MIS (for intraday trades) or CNC (for delivery trades).
Here’s how to place Stop Loss Order in Zerodha Kite for “Buy”
Log in to your kite mobile and open your watchlist
From your watchlist, select the stock you wish to buy
Click on a particular stock to view its entire detail (such as market depth, bid, number of orders, offers, and quantity)
Along with all the details, the “buy” and “sell option will appear in blue and red color respectively
Click on “buy”
Fill in the quantity of stock you wish to purchase and select either “MIS” or “CNC”
Now, select your order type as “SL” (stop-loss) and fill in your desired “stop-loss trigger price” and the “limit price”
If you chose MIS i.e. an intraday trade, you must square off your open position before the market closure. Besides, your order shall be executed at your set limit price, once the “stop-loss trigger price” is met
Under CNC, you can hold your position for long as it is a delivery trade. You, therefore, can sell after as long as you wish
However, since delivery trades (CNC) are meant for long-term investments, you must ideally specify your “buy” order’s type as “market” rather than “stop-loss” “limit” or “SLM”.
This is because you intend to hold that share for a certain time and a stop-loss does not really matter in such cases. Your intention is to invest in the stock/hold the stock rather than limiting losses on it.
Zerodha MIS order with stop loss or even the CNC ones can be placed on the Kite Web as well. The procedure for both “sell” and “buy” orders is the same as that on Kite mobile.
The traders who prefer a bigger display can log in to kite.zerodha.com and place stop-loss orders.
Zerodha Stop Loss Validity
The validity of stop-loss order Zerodha is of two types – “Day” and “IOC”. You can find these under the “validity” segment on both the web as well as the mobile platform of Zerodha Kite.
“DAY” and “IOC” are two validity alternatives on Zerodha
If you select “Day”, your order (either buy or sell) will remain valid for that entire trading day
If you select “IOC” and your order quantity is huge. For example, you placed 100 orders and eventually get a seller for only 60 of them. Since an IOC is applied, those 60 orders will be executed while the remaining 40 will be canceled
Thus you can use the Zerodha Trading platform for placing the stop loss in Zerodha. Understanding the whole process of how to place stop loss order in Zerodha Kite step-by-step to makes it easy to sell and buy shares.
In case you are interested in trade, open your Demat account