Learn stop-loss and stop-limit orders — Hinglish notes

1.6.2 · Stock-Market › Order Types & Mechanics

YEH orders KYUN exist karte hain?

Central tension yeh hai: jab tum ek losing trade se nikl rahe ho, kya tumhe zyada farak padta hai jaldi bhaagne ka ya acchi price par bhaagne ka? Sirf yahi ek choice hai dono orders ka fark.

YEH KYA hain (precise definitions)

YEH KAISE kaam karte hain — step by step

Figure — Learn stop-loss and stop-limit orders

Forecast-then-Verify

Recall Answer padhne se pehle forecast karo

Tumhare paas $200 p a r e k s t oc k haia u r * * se l l s t o p - l imi t : s t o p$ 190, limit $188 * * hai . R aa t bha r, t er r ib l ee a r nin g s; s t oc k * *$ 175** par open hoti hai. Open par tumhari position kya hai?

Answer: Tum **abhi bhi ~ $175 p a r h o l d k a r r ah e h o * *, u n f i l l e d . T r i g g er$ 190 par fire hua (price usme se guzri), $188 p a r e k l imi t se l l cr e a t e k i . L e k inha r bi d$ 188 se neeche hai, isliye kuch fill nahi hota. Tumhari "protection" ne gap mein koi protection nahi di. Yahan ek stop-loss (market) tumhe ~$175 ke paas bahar kar deta — bura, lekin bahar.

Common mistakes (Steel-man + fix)

Mnemonic

Feynman: 12-saal ke bacche ko samjhao

Recall Simply samjhao

Socho tum ek auction mein ho aur tumhare paas ek toy hai jo tumne $100 m e ink ha r i d i t hi . T u m z y a d a l ose nahik a r na c hah t e, i s l i y e a p n e d oos t k o k e h t e h o : * * " A g a r m er e t oy k e l i y e bi dd in g k abhi$ 90 tak girе, toh use mere liye bech dena — main lunch par hoga."** Woh "$90 = becho" note ek stop order hai.

Agar tum kaho "ise jo bhi kharidne wala mile use bech do, chahe price kuch bhi ho" → woh stop-loss hai. Tum definitely isse chhutkara pa loge, lekin shayad sirf $80 mein agar room panic kar jaaye.
Agar tum kaho **"becho, lekin $88 se k amm e ink abhinahi " * * \to w o h * * s t o p - l imi t * * hai . T u ma p ni p r i ce p r o t ec t k a r t e h o, l e k ina g a r s ab s i r f$ 80 offer karte hain, tumhara doost toy rakh leta hai aur tum usse stuck ho jaate ho jaise yeh kam popular hoti jaati hai. Yahi poora idea hai: "pakka chhutkara pao" vs "sirf meri price par."

Active-recall flashcards

#flashcards/stock-market

Stop price actually kya karta hai?

Yeh trigger hai; ek baar touch hone par yeh dormant order ko ek live market ya limit order mein convert karta hai. Yeh fill price nahi hai.

Trigger hone par stop-loss kis tarah ka order ban jaata hai?

Market order (fill guarantee karta hai, price nahi).

Trigger hone par stop-limit kis tarah ka order ban jaata hai?

Limit order (price/better guarantee karta hai, fill nahi).

Kaun sa order fast market mein execute hone mein fail ho sakta hai?

Stop-limit — agar price limit ke aage gap kar jaaye, kuch fill nahi hota.

Kaun sa order bad price par slippage ka risk rakhta hai?

Stop-loss (stop-market), kyunki woh jo bhi price available ho uspar fill hota hai.

SELL stop-limit ke liye, stop aur limit ka relation kaisa hona chahiye?

Stop ≥ Limit (limit ko stop se thoda neeche cushion ke saath set karo).

BUY stop ke liye, stop current price se upar hota hai ya neeche?

Upar — breakout entries ya shorts cover karne ke liye use hota hai.

Tum

100 p a r h o l d k a r t e h o, s t o p - l oss

90 par, stock

70 t ak g a p k a r t ihai . R o ug h l y k ahan f i l l h o g e ? :::

70 ke paas (market order available price leti hai) — tum bahar ho lekin

90 se k aa f in eec h e . S am ese t u p s t o p - l imi t s t o p

90 limit

89 k es aa t ha u r

70 tak gap. Result?

Koi fill nahi; tum girate waqt hold karte rehte ho (limit unreachable hai).

Stops ke context mein 'whipsaw' kya hai?

Normal price noise ek bahut tight stop trigger karti hai, tumhe recovery se pehle bahar sell kar deti hai.

Stop aur price ko jodne wala ek-line rule?

Stop = KAB activate hota hai, guaranteed price nahi jo tumhe milti hai.

Jab bahar nikalna price se zyada important ho toh best order type?

Stop-loss (stop-market).

Jab exit certainty se zyada terrible fill se bachna matter kare toh best order type?

Stop-limit.

Connections

Market Orders vs Limit Orders — do live-order types jinmein stop convert hota hai.
Slippage and Bid-Ask Spread — stop price se worse stop-market fill kyun ho sakti hai.
Gap Risk and Overnight Moves — woh scenario jahan stop-limits fill hone mein fail hote hain.
Trailing Stop Orders — ek stop jiska trigger favorable price ke saath move karta hai.
Volatility ATR and Position Sizing — stops ko normal noise survive karne layak kaise place karein.
Order Book and Price-Time Priority — ek resting limit ko fill ke liye counterparty kyun chahiye.
Risk Management and Stop Placement — stops use karke per-trade loss define karna.