Why is the error “Trigger price can’t be higher than price” or “Trigger price can’t be lesser than price” displayed while placing a stop loss order?

This error occurs with stop-loss orders when the trigger and limit prices are entered incorrectly, and it’s important to understand how to avoid it. A stop-loss order requires both a trigger price and a limit price. Here are the scenarios where this error can occur:

For Buy Stop-Loss Orders:

Error: If the stop-loss trigger price is higher than the limit price.

For Sell Stop-Loss Orders:

Error: If the stop-loss trigger price is lower than the limit price.

In these cases, the orders will be pending and fail to execute.

Example Scenario:

Let’s say a client holds a stock currently trading at ₹100, with a stop-loss trigger price set at ₹95 and a limit selling price of ₹96.

When the trigger price, ₹95, is met, a limit sell order is placed at ₹96.

However, since this limit order price is higher than the current market price, it becomes a pending order and does not execute.

To increase the likelihood of order execution, consider entering a limit order with a price lower than ₹95.

Key Recommendations:

When placing a buy stop-loss order, ensure the trigger price is lower than or equal to the limit price.

For a sell stop-loss order, set the trigger price higher than or equal to the limit price.