This error occurs for stop-loss orders when you enter the trigger and limit prices incorrectly. A stop-loss order requires a trigger price and a limit price. You can observe this error in the following cases:
-
Buy stop-loss orders:
If your stop-loss trigger price is higher than the limit price
-
Sell stop-loss orders:
If your stop-loss 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 stop-loss 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 stop-loss not being executed. However, Stop-loss market orders are not allowed for options.