Why is the error “The difference between the limit price and trigger price for SL orders is over the exchange permissible range” displayed?
The NSE circulars for Equity (PDF), F&O (PDF), and Currency Derivative Segment (CDS) (PDF) outline guidelines regarding Stop Loss – Limit (SL-L) orders for stock F&O, currency F&O, and index F&O contracts. It’s essential to understand the rules to ensure smooth order processing. Here’s a summary:
Rule Overview:
The circular specifies that SL-L orders will be rejected if the difference between the trigger price and the limit price exceeds the allowed limit.
This rule is applicable to both new SL-L orders and modifications made to existing ones.
Calculation of Allowed Limit:
The allowed limit for each instrument is determined using a specific formula.
The formula considers the trigger price, X%, and a minimum absolute range (in ₹) based on the type of instrument.
For detailed insights into the calculation of the permissible range, please refer to the circulars mentioned above.