What is a Stop Loss order?

A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. For instance, if you have bought a stock at Rs 50 and you want to limit the loss to 45, you can place an order in the system to sell the stock as soon as the stock comes to 45. Such an order is called ‘Stop Loss’.

There are 2 types of Stop-Loss orders:

1. SL order (Stop-Loss Limit) = Price + Trigger Price
2. SL-M order (Stop-Loss Market) = Only Trigger Price

–if you have a buy position, then you will keep a sell SL

–if you have a sell position, then you will keep a buy SL

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