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Market basics
Also called: SL, Stop-loss order
A stop loss is a price at which a trader plans to exit a position to cap a loss if the trade goes the wrong way. A stop-loss order turns that plan into an order the broker triggers when the price is reached.
You buy at ₹500 with a stop loss at ₹475. If the price trades down to ₹475 the order triggers and the position is sold, limiting the loss to about ₹25 a share plus costs — though a gap below ₹475 can fill lower.
For SEBI-registered research analysts: The price at which the analyst suggests exiting to limit a loss if the call goes the wrong way. You place and manage your own orders; nothing here trades for you.
A stop loss is a price at which a trader plans to exit a position to cap a loss if the trade goes the wrong way. A stop-loss order turns that plan into an order the broker triggers when the price is reached.
You buy at ₹500 with a stop loss at ₹475. If the price trades down to ₹475 the order triggers and the position is sold, limiting the loss to about ₹25 a share plus costs — though a gap below ₹475 can fill lower.