What is Stop Loss Order in Order Type?

A Stop Loss Order helps limit potential losses by automatically triggering a buy or sell order when the stock reaches a specified trigger price.

There are two types of Stop Loss Orders:

1. SL (Stop Loss – Limit):

• Requires both a trigger price and a limit price.
• Once the trigger is hit, a limit order is placed.
• Example: Trigger ₹150, Limit ₹148 → When price hits ₹150, a sell limit order is placed at ₹148.

2. SL-M (Stop Loss – Market):

• Requires only a trigger price.
• Once triggered, a market order is placed.

Example: Trigger ₹150 → When price hits ₹150, the stock is sold at the market price.