How to Set a Trailing Stop Loss for Normal Orders in Zerodha

Trailing stop loss is a powerful tool in trading, allowing orders to adjust the stop loss level as the market price moves in your favor. In this comprehensive guide, we will walk through the steps to set a trailing stop loss for normal orders in Zerodha, a popular trading platform. We will also discuss some important notes and strategies to consider.

Steps to Set a Trailing Stop Loss in Zerodha

Log in to Your Zerodha Account: Open the Zerodha Kite app or website and log in. Place a Buy Order: Start by placing a buy order for the stock or instrument you wish to trade. Select the Order Type: In the order entry window, select the order type as either Market or Limit depending on your trading strategy. Set the Stop Loss:

For Market Orders: When placing your Market order, look for the option to set up a trailing stop loss.

For Limit Orders: Enter the stop loss price at which you want to trigger the trailing stop loss.

Enable Trailing Stop Loss:

After entering the stop loss price, you can enable the trailing feature by specifying a trailing amount or percentage.

For example, if you want the stop loss to trail by 5, you would set the trailing stop loss at 5 below the highest price reached after your buy order is placed.

Review and Confirm: Check all your order details, including the trailing stop loss settings, and confirm your order. Monitor Your Order: Once your order is placed, the trailing stop loss will automatically adjust as the stock price moves in your favor. If the stock price reverses and hits your stop loss, the order will be triggered.

Important Notes

Trailing stop loss orders are primarily supported for futures and options directly in Zerodha. For equity, you may need to manually adjust your stop loss based on the price movements. It is crucial to be familiar with different order types such as Market, Limit, and Stop Loss.

A clear trading strategy and risk management plan are essential for effectively using trailing stop losses. If you need more specific guidance or have any questions, feel free to reach out!

Using Trailing Stop Loss for Intraday Trades in Kotak Securities

For intraday trades, a trailing stop loss order can be particularly useful, especially if your brokerage does not charge brokerage fees on intraday transactions. The procedure for placing a trailing stop loss order in Kotak Securities is similar to the one described for Zerodha. However, ensure that you follow the specific guidelines provided by your brokerage to avoid any discrepancies.