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

    • Related Articles

    • How do I place Buy VTT order with Stop loss and target?

      Buy VTT with Stop-loss and Target: Allowed in equity and FNO segment (Delivery Trade) Consider the example in the below image below: In this example, If the trigger price of 2700 is hit on the exchange, a limit buy order at 2700 is placed. This order ...

    • How do I place sell VTT order with Stop loss and target?

      Sell VTT is used to exit current stock holdings or short selling the future and Options contract. Consider the example in the image below: In this example, If the trigger price of 1650 is hit on the exchange, a limit buy order at 1650 is placed. This ...

    • How do I place sell VTT order?

      Sell VTT is used to exit current stock holdings or selling FNO contract Consider the example in the image below: In this example, If the trigger price of 1680 is hit on the exchange, a limit sell order at 1680 is placed. This order will be executed ...

    • What are bracket, cover and makret order and how to place the order for the same?

      Bracket Order 5paisa provides bracket order wherein customer can take an intraday position and take an advantage of extra exposure while being protected through stop loss order and a profit objective. To place an order, please follow the below path: ...

    • How to place an order?

      To place an order, follow the below steps: Step. 1. Select the stock you want to place order for Step. 2. Right click on stock and click the buy/sell button Step. 3. Order entry window will open Step. 4. Select the type of order you wish to place ...