What is the difference between limit price and SLTP price that can be specified for a cover order?
Depending on the stock volatility and market situation, ICICI Securities Ltd would specify the minimum % difference between limit price and SLTP price that can be maintained for a particular stock. You can however specify a greater difference as well. Example: A 5% difference has to be maintained between the limit price and SLTP for ACC. You have taken a buy position (fresh order) for 1000 shares in ACC at Current price of Rs 100/-.You specify the sell order (Cover order) for 1000 shares in ACC at SLTP of Rs 95/-.Since this is a sell order the limit price would be lower than the SLTP. Limit price in this case can be Rs 90.25/- and below. If any price between 90.25 and 95 is specified the order cannot be placed.
Depending on the stock volatility and market situation, CBSL would specify the minimum % difference between limit price and SLTP price that can be maintained for a particular stock. You can however specify a greater difference as well. Example: A 5% difference has to be maintained between the limit price and SLTP for ACC. You have taken a buy position (fresh order) for 1000 shares in ACC at Current price of Rs 100/-.You specify the sell order (Cover order) for 1000 shares in ACC at SLTP of Rs 95/-.Since this is a sell order the limit price would be lower than the SLTP. Limit price in this case can be Rs 90.25/- and below. If any price between 90.25 and 95 is specified the order cannot be placed.
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