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Can I place a target and stop-loss order simultaneously for my open Futures position?

Yes, you can, if you have positive cash balance. It is possible to place 2 orders of the opposite transaction type (buy/sell) in the same instrument, even if you don't have the required margin for the 2nd order. This is possible in both NRML and MIS product types.

For example - assume, the available balance in your trading account is Rs 1 lac. You bought NIFTY futures at 11300 and the margin blocked is Rs 96000. Now, assume you want to limit your losses at 11275, so you place a stop-loss order at 11275.  This first exit order that you place, doesn’t require any margin because exchanges recognize that you are trying to exit a position that you have.

Now, let's assume that your target price is 11350. You can place another sell order to open a new short position at 11350 (even though the required margin is around 96K and you have 4K as free cash). This is possible only if the available balance in your account before you initiated the NIFTY buy was more than the required margin i.e Rs 96000 and you have a positive account balance.

The first order which gets executed will be considered as the exit and the margins blocked for your open position will be released.

This released margins along with the free cash in your trading account will be used to open a new position as per your second order. So please ensure to cancel your Stop-loss order if your target order is hit and similarly cancel your target order if your stop-loss order is executed.

Note: This is not applicable in Equity cash segment and options.

Check out this post on Z-connect for a detailed explanation.