What is stop-loss Zerodha?

A Stop Loss (SL) order in Zerodha is used to minimize the extent of losses in intra-day trading. The stop-loss orders are placed along with buy or sell orders. Zerodha automatically executes the SL order once it reaches the set price of the stock.

So for example, if you have bought a stock at Rs 200 and you want to limit the loss at 190, you can place an order in the system to sell the stock as soon as the stock comes to 190. Such an order is called a 'Stop Loss', as you are placing it to stop a loss more than what you are ready to risk.

There are 2 types of Stop-Loss orders in Zerodha Kite:

1. SL order (Stop-Loss Limit) = Price + Trigger Price
2. SL-M order (Stop-Loss Market) = Only Trigger Price