What is Stop Order?
Stop order becomes active when stop price is touched — often exits or enters with momentum.
Formula
Buy Stop (Breakout Entry): - Current price: ₹100 - Buy stop at: ₹105 - When price hits ₹105 → becomes market buy order - Fills immediately at ~₹105 (or current price) Sell Stop (Stop Loss): - Current price: ₹100 - Sell stop at: ₹95 - When price hits ₹95 → becomes market sell order - Fills immediately at ~₹95 (or current price) Note: In fast markets, fill may differ from trigger price
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Stop Order shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
Stop Order on Nifty futures at 24,300: verify freeze quantity and tick size on NSE; market orders in opening auction behave differently from continuous session.
Reliance Industries perspective
Stop Order on Reliance (₹1,300): AMO and GTT rules vary by broker; intraday MIS auto-square-off at 15:15 IST overrides resting stop order unless converted.
Bank Nifty futures perspective
Stop Order on Bank Nifty (55,000): bracket/OCO availability depends on broker stack — test fill quality on 100-point stop triggers before live size.
How to validate
- Validate Stop Order fills against broker contract notes monthly.
- Measure median slippage in points/₹ for Stop Order on Bank Nifty vs mid-caps.
- Flag sessions with abnormal rejections or partial fills for separate review.
- Compare limit vs market tags only on symbols with similar liquidity.
How to track in TradeLyser
- Record order type, limit price, fill price, and latency on the trade.
- Tag “slippage > plan” when Stop Order fills worse than expected.
- Monthly slippage report by symbol and order type in analytics.
- Reconcile with broker order log quarterly.
Best practices
- Choose Stop Order before the move, not after FOMO entry.
- Default to limits on illiquid mid-caps; markets on urgent exits only.
- Log rejected orders — they reveal unrealistic limit discipline.
- Review slippage in R-multiples, not only rupees.
Common pitfalls
- Chasing with market orders after Stop Order already moved.
- Using limits on fast Bank Nifty breaks without timeout rules.
- Not recording partial fills — skews performance stats.
- Assuming broker fills match intended Stop Order every time.
How to use this in TradeLyser
Tag stop type and distance in R; review stop-out rate vs MAE monthly.
Related terms
A bracket order places entry with predefined profit target and stop-loss (OCO). It enforces planned R:R if fills match plan.
A stop loss is a pre-defined exit when the market moves against you by a set amount. It caps loss per trade when fills match your plan.
A stop-limit order activates a limit order when the stop price is touched. You cap price but may not fill in a crash.
A trailing stop adjusts the exit level as price moves in your favour, maintaining a fixed distance or structure-based buffer.
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