Why am I getting the error, "Price limit has to be higher than the trigger" or "Trigger has to be higher than the last traded price of Rs. xxx." when I try to place a stop loss order?
You might get an error in the following scenarios.
The SL order has two price elements to it –
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Stop loss limit price
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Trigger price.
Depending on your trade position that could be SL Buy or SL Sell, the trigger price should be adjusted.
Situation 1 – When an SL Sell order is placed.
When you place an SL Sell order, the trigger price should be greater than the limit price. If a lower trigger price is keyed in than the limit price, the above mentioned error can show up.
For resolving this, make sure that the trigger price you enter is greater than the limit price.
Situation 2 – When a SL Buy order is placed.
In case you place an SL Buy order, the trigger price you enter should be lower than the limit price. If the trigger price entered is greater than the limit price, the above mentioned error can show up.
For resolving this query, enter a trigger price that is lower than the limit price when you place a SL Buy order.
While placing an SL order, you should also be mindful of the fact that SL Buy orders can be placed only above the current market price, and SL Sell orders can be only placed below the current market price.
In both situations, SL can act as a trigger.
Let’s understand this with an example. In this scenario, both the SL and trigger price are the same. Since the trigger price is Rs. 140, when the stock is traded at Rs. 140, the order will trigger at a buy price of Rs. 140. If the stock is offered at Rs. 140 or below, it will be purchased quickly. In contrast, if it is higher than Rs. 140, by the time the order is placed (this could occur due to fast movements in price), your buy order will stay at Rs. 140 and will be filled when a seller is available to buy at this rate. As a solution, we suggest placing the trigger price lower or greater than the limit price based on the buy or sell order to have a better possibility for the order to get executed.
If the rules stated above are not followed, your order will get rejected and the mentioned errors will pop up.
What is a Buyback/Takeover/Delisting?
My order is getting rejected with the following error – ‘Order price is outside the trade execution range. Try placing the order again
My order is getting rejected with the following error – ‘The order was rejected to avoid self trade. Try placing the order again’.
Why was the stop loss executed even though the price did not breach the trigger?