What is the significance of stop loss trigger price in currency future?
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ICICIdirect Executive On behalf of Mr. Ramesh Varakhedkar (Head - Commodity and Currency, ICICIdirect): Stop Loss Trigger Price is used when investor wants to place Stop Loss Order. And the Stop Loss Order is used as a tool to limit the maximum loss on a position.
A Stop loss order allows the investor to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of Stop Loss Trigger Price . When a stop loss trigger price (SLTP) is specified in a limit order, the order becomes one which is conditional on the market price of the security crossing the specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is satisfied. Once the last traded price of the security reaches or surpasses the SLTP, the order becomes activated (i.e. eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a normal limit order.