This error occurs for stoploss orders when you enter the trigger and limit prices incorrectly. A stoploss order requires a trigger price and a limit price. You can observe this error in the following cases:
-
Buy stoploss orders:
If your stoploss trigger price is higher than the limit price
-
Sell stoploss orders:
If your stoploss trigger price is lower than the limit price
In such cases, your orders will be pending and fail to execute.
Example scenario
- You hold a stock currently trading at ₹100, with a trigger price set at ₹95 and a limit selling price of ₹96.
- When the trigger price of ₹95 is met, the exchange places a limit sell order at ₹96.
- However, since this limit order price is higher than the current market price, it becomes a pending order and does not execute.
To increase the likelihood of order execution, consider entering a limit order with a price lower than ₹95.
When you place a buy
stoploss order,
ensure your trigger price is lower than or equal to the limit price. For a sell SL order, set your trigger price higher than or equal to the limit price.
Did you know? You can use stoploss market(SL-M) orders, where the order is placed at the market price once the trigger is hit. This way, you won’t face the above error of stoploss not being executed. However, Stoploss market orders are not allowed for options.