Stop-loss order
Also called: stop loss, SL order, SL-M order, stop-limit order, stop order
An order that waits until the price reaches a trigger you set, then becomes a live limit order (SL) or market order (SL-M).
A sell stop-loss order is triggered when the last traded price falls to or below the trigger price; a buy stop-loss order when it rises to or above it. Until then it is not in the market.
A stop-loss does not guarantee the exit price. If the price jumps past the trigger, a limit version may not fill at all and a market version may fill well below the trigger.
Example
With a trigger of ₹460 and a limit of ₹455, a sell order is triggered once the share trades at ₹460 or lower, and then sells only at ₹455 or better.
Learn more in these lessons
- Stop-loss and stop-limit ordersHow does a stop-loss order work?
- Price gapsWhy do price gaps happen, and do they always get filled?
- Entry and exit planningHow do you plan when to enter and exit a trade?
- Placing stop-lossesWhere should a stop-loss be placed?
- Risk/reward and position size per tradeHow many shares should you buy, and what does risk/reward mean?
Related terms
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