Can I place a target and stop-loss order simultaneously for my open Futures position?

Yes, if you have a positive cash balance. Even if you don't have the required margin for the second order, you can place two orders of the opposite transaction type (buy/sell) in the same instrument. This is an option for both NRML and MIS products.

Assume you have a Rs 1 lac available balance in your trading account. You purchased NIFTY futures at 16300 with a margin of Rs 96000. Assume you want to limit your losses at 16275 and place a stop-loss order at 16275. Because exchanges recognise that you are attempting to exit a position, the first exit order you place does not require any margin.

Let's pretend your target price is 16350. You can place a sell order at 16350 to open a new short position (even though the required margin is around 96K and you have 4K as free cash). This is only possible if the available balance in your account prior to initiating the NIFTY purchase was greater than the required margin, i.e., Rs 96000, and you have a positive account balance.

The first order that is executed is considered the exit, and the margins that have been blocked for your open position are released.

This free cash in your trading account, along with the released margins, will be used to open a new position in accordance with your second order. Please ensure that your stop-loss order is cancelled if your target order is hit, and that your target order is cancelled if your stop-loss order is executed. You can also use GTT order if you prefer.