It is an order type that can be used to limit the losses when the trade goes against you. There are two types of Stop Loss orders:
Stop-Loss Limit Order: In this order type, you will have to enter both limit and trigger price.
Example: Let’s say you bought Ashokley shares at 50, and you have placed a stop loss trigger order at 46 and limit order at 45. The stop-loss order will be activated once the market prices reach 46, and the order will be executed at or above 45.
Stop-Loss Market Order: In this order type, you will have to enter the trigger price only.
Example: Let’s say you bought Ashokley shares at 50 and placed an SL-M Order with a trigger price at 45. When the price reaches 45, the SL-M order will be executed and your position will be squared off at the market price.