How to Place a Stop Loss Order in Kotak NEO?

Last Updated: Mar 19, 2024 Value Broking 2 Mins 2.8K

Short-term trading in the stock market can be a lucrative endeavor, but it also comes with its fair share of risks. One essential tool for managing these risks is the stop-loss order. In this guide, we will walk you through the steps to place a stop-loss order in the Kotak neo app, ensuring you know how to protect your investments.

Step 1. Accessing the Platform:

Upon logging into your Kotak NEO account, navigate to the home screen.

Step 2. Access the Portfolio Tab:

Click on the ‘Portfolio’ tab available on the home screen. This action will direct you to a new interface.

Step 3. Navigating to Positions:

Within the portfolio section, locate and click on the ‘Positions’ tab to view your open positions.

Step 4. Setting Up Stop Loss on an Open Position:

Identify the position for which you wish to set up a stop loss. Click on the specific script or position.
Select the ‘Sell to Square Off’ button to initiate setting up a stop loss order.

Step 5. Order Form and Order Types:

On the order form, you can choose between two order types: ‘Stop Loss Limit’ or ‘Stop Loss Market’.
For ‘Stop Loss Limit,’ define the stop loss trigger price and the selling price. With ‘Stop Loss Market,’ set the trigger price, and the order executes at the market price.

Step 6. Sending the Order:

Once configured, the stop loss order will be sent to the exchange when the specified conditions are met.
Ensure that the trigger price is lower than the last traded price and the sell price is lower than the trigger price for a stop loss sell order.

Step 7. Additional Considerations:

To set up a stop loss while placing the order, select the product type as ‘Cover Order’.
For a short position, follow similar steps by clicking the ‘Buy to Square Off’ button.

Step 8. Demo and Order Placement:

In a demo scenario, select ‘Stop Loss Limit,’ enter the stop loss trigger price (e.g., Rs. 52), and the selling price (e.g., Rs. 50).
Click on ‘Swipe to Sell’ to place your stop loss order effectively.

Remember, in securities markets, there are inherent risks, and it’s crucial to read and understand all related documents before investing.

By following these steps on the Kotak NEO platform, traders can proactively manage risks by setting up stop loss orders, thereby enhancing their ability to navigate the volatile nature of the market.