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As the name suggests, stop-loss orders are placed to stop a loss. For example, if you wish to sell a scrip which is currently trading at Rs 110 only if its price goes below 105.
There are two types of stop-loss orders:
In Case 1, if you have a buy position, then you will keep a sell SL
In Case 2, if you have a sell position, then you will keep a buy SL
To continue with the above example, in a stop-loss limit order, if one wishes to sell the security only till 100 after it falls below 105, then along with the trigger price of Rs. 105, the limit trade price of Rs 100 would also have to be entered.
In the Stop Loss-M order, you will place a Buy SL-M order with trigger price = 105. Here, when the price of 105 is triggered, a buy market order will be sent to the exchange and your position will be squared off at market price.
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Zerodha Trade@20
