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# Why Accounting Education Volunteer

## Become Volunteer Teacher

Stop order is finance term which is used share market trading. It means to stop the order of buy or sell. If you have bought the share, you can stop it and order to sell it on your pre-determined price. If you have sold the share, you can buy again at your pre-determined price.

Ok, I explain it in the detail

Stop order is great advance technique which helps investor to safe from future losses in the share market. It is an insurance. For example, you pay small premium to insurance company for your shop for one year. If any day, your shop has caught the fire, you get insurance amount from insurance company, like this, same can apply with the help of stop order technique. There is no cost of this.

You just invest its time to understand the technique and use it in your DEMAT account.

Ok, we are teaching its more detail with example

For example, I bought 1 share of RS. 100 and its trend is decreasing and its price has reached Rs. 90. I have bought its 10,000 quantity. It means, I loss Rs. 1,00,000 due to decrease of the price of share.

Rs. 100,0000 - 9,00,000 = Rs. 1,00,000. Now, Its trend is showing downward and its means, its price may go to Rs. 80 but, I can not tolerate its more loss but I have hope, its price may rise. So, I will stop the order by saying my stock broker to sell this share if it is price will down and reach at 88, I will sell it. I went to picnic and price was went to 80 but my stock broker is smart who sold it at 88 my all shares. Now, with stop order technique, I protected myself loss of Rs. 80,000

9,00,000 - 880,000 = 20,000

8,80,000 - 8,00,000 = 80,000

Now, learn how to Apply this Stop Loss Technique in your DEMAT Account

Steps to Stop Order in DEMAT ACCOUNT

I have SBI DEMAT Account and I am teaching in it.

2nd Step just go to trade

3rd Step :  write the company name whose share you want to sell in future day for protecting the loss. Write its quantity.

4th Step :   Now, Go to fix strategy of Stop order by choosing Order type option as SL - L

It means stop loss limit

5th Step : Set price and Trigger price

Normal price must be less than trigger price. If trigger price is Rs. 88, then set normal price is Rs. 860

6th Step : Sell

Now, click on sell and

With this, brokering software has taken your input of stop order. It will valid one day.

Video Tutorial

Watch following video tutorial for better understanding of above.

Reference eBook

Be Pro- Investor of Indian Companies Shares

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