At what price will the stop-loss or target be executed for a Protected position on Punch?

When the market price reaches the stop-loss or target level you have set, Punch does not place a simple market order at whatever price is available. Instead, it uses a smarter approach to protect you from sudden price jumps.

How the Execution Works

1. You set a stop-loss or target price on your position.

2. This price becomes the trigger price — the level at which the exit order gets activated.

3. Once triggered, a limit order is placed with a 5% buffer (also called market protection) from the trigger price.

For example, if your stop-loss trigger is set at Rs. 100, the actual sell order will be placed at Rs. 95 (5% below the trigger for a long position). This buffer helps ensure the order gets filled even if the price moves quickly.

Why the 5% Buffer?

Markets can be volatile, especially during news events or at open/close. A pure limit order at exactly your trigger price might not get filled if the price gaps past it. The 5% buffer gives your order a better chance of execution while still keeping it within a reasonable range.

Key Takeaway

Your stop-loss and target prices are triggers, not exact execution prices. The actual fill price will be at or near your trigger level, with the 5% buffer acting as a safety net.