What is stop loss order and how to place it?

What is stop loss order and how to place it?

It is used as a tool to minimise losses on a position. You may use this type of order when, for example, you have bought a particular stock at Rs 1000. You can afford losses only up to Rs.950. Instead of seeing market continuously and check price you can limit such a loss by placing a Stop Loss order. Place order @ Rs. 950 as your Trigger Price and Rs. 945 as the Limit Price. The order of Rs. 945 gets a trigger when price falls to Rs. 950.

Limit Price: Limit price is the price at which shares are bought or sold.
 
Trigger Price: It is the price at which the exchange servers will make you Buy/Sell order active for execution. After the stop loss is triggered, Limit Price is the price at which your shares will be bought or sold.

For a Stop Loss Order, you need to change the order type from RL (Regular) to SL (Stop Loss) on the order entry screen. You will also have to mention Trigger Price & Limit Price.
 
For a ‘Buy’ Stop Loss order, the Trigger Price will be lower than the Limit Price.
 
For a ‘Sell’ Stop Loss order, the Trigger Price will be higher than the Limit Price
 
Note: You can place the order in stop loss as many times you want and modify if required. However, if the stop loss is triggered and partially executed, then you will not be able to modify the same. 
 


To place order in stop loss, following are the ways:

Website Platform:
Login to www.5paisa.com >> Click on Scrip >> Click on Buy/Sell >> Advance Buy/Sell >> In Order Type, Select Stop Loss

Mobile Platform:
Login to our 5paisa Mobile App >> Click on Scrip >> Click on Buy/Sell >> Advanced >> In Order Type, Select Stop Loss
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