The National Stock Exchange of India (NSE) continuously reviews and implements pre-trade risk control measures to ensure orderly trading, effective risk management, and accurate price discovery. As part of this ongoing effort, NSE has introduced new validations for Stop Loss (SL) Limit Orders for Equity and Futures & Options Segment. This blog will delve into these updates, explaining their implications and benefits for traders.
Understanding SL Limit Orders and Permissible Ranges
When placing a Stop Loss (SL) Limit Order on Angel One, it’s essential to ensure that the difference between the trigger price and the limit price is within the permissible range set by the exchange. Here’s a simplified guide to help you understand these rules:
Permissible Ranges for SL Limit Orders
Equity Segment
| Trigger Price (Rs.) | Maximum Permissible Difference (Rs.) |
| <= 50 | 1.5 |
| > 50 | 3% of Trigger Price |
Futures & Options Segment
| Instrument | Trigger Price (Rs.) | Maximum Permissible Difference (Rs.) |
| Index and Stock Futures Contract | <= 50 | 1.5 |
| > 50 | 3% of Trigger Price | |
| Index and Stock Options Contract | <= 50 | 10 |
| > 50 | 20% of Trigger Price |
Example Scenarios
Let’s look at some practical examples to understand how these rules apply:
Buy SL-Limit Orders in the Equity Segment and Futures contract
- Example 1:
- Trigger Price: Rs. 100
- Limit Price: Rs. 105
- Difference: Rs. 5
- Permissible Range: 3% of 100 = Rs. 3
- Result: Order rejected. Difference exceeds the permissible range.
- Suggested Correction: Reduce the limit price to at least Rs. 103.
- Error Message: Difference between limit price and trigger price for SL Limit Order is beyond the exchange Permission range of Rs 3 Considering reducing the limit price below Rs. 103.
Sell SL-Limit Orders in the Options contract
Example 2:
- Trigger Price: Rs. 200
- Limit Price: Rs. 130
- Difference: Rs. 70
- Permissible Range: 20% of 200 = Rs. 40
- Result: Order rejected. Difference exceeds the permissible range.
- Suggested Correction: Increase the limit price to at least Rs. 160.
- Error Message: Difference between limit price and trigger price for SL Limit Order is beyond the exchange Permission range of Rs. 40. Considering increasing the limit price above Rs. 160.
How to Calculate the Permissible Range?
To ensure your orders meet the permissible range, you can use the following steps:
- Identify the Trigger Price.
- Determine the Segment and Instrument type (e.g., Equity, Futures contract, Options contract).
- Use the respective rule to calculate the permissible difference:
- For Trigger Price <= Rs. 50, use the fixed value (e.g., Rs. 1.5 for Equity segment and futures contract and Rs. 10 for options contract).
- For Trigger Price > Rs. 50, calculate the percentage value (e.g., 3% of the trigger price for Equity segment and future contracts and Rs. 20% for options contract).
Trading Responsibly
To avoid rejections and ensure your orders are successfully placed, always calculate the permissible range before setting your SL Limit Orders. This will not only save you time but also help maintain the integrity of your trading strategy.
Conclusion
At Angel One, we strive to provide a robust trading platform that aligns with regulatory standards. By understanding and adhering to the permissible ranges for SL Limit Orders, you can optimize your trading experience and ensure compliance with exchange requirements. For any further assistance, please feel free to contact our support team.
Happy Trading!
