A stop-loss order helps you limit your loss on a position. It stays inactive until the price reaches a level you set — the trigger price — and only then does it become a live order in the market.
How a stop-loss works
You set a trigger price. The order goes to the exchange right away but stays inactive; when the live last traded price (LTP) reaches that trigger, the exchange activates it and releases it into the market.
- On a buy position, you place a sell stop-loss with a trigger below your buy price — so if the price falls to that level, your position is sold and the loss is capped.
- On a short (sell) position, you place a buy stop-loss with a trigger above your sell price — so if the price rises to that level, your position is bought back.
The two types: SL and SL-M
Rupeezy offers two kinds of stop-loss order:
- SL (Stop-Loss Limit) — you set both a trigger price and a limit price. When the trigger is hit, a limit order is placed at your limit price. You control the execution price, but the fill isn't guaranteed if the price moves past your limit.
- For a buy SL, the limit price should be at or above the trigger price.
- For a sell SL, the limit price should be at or below the trigger price.
- SL-M (Stop-Loss Market) — you set only the trigger price. When it's hit, a market order is placed, so it fills immediately at the best available price. Execution is near-certain, but the exact price isn't fixed.
How to place a stop-loss order
- Open the order window for the stock or contract.
- Choose the order type — SL or SL-M.
- Set the trigger price at the level where the stop-loss should activate.
- For an SL order, also set the limit price.
- Enter the quantity and place the order.
The order stays pending until the LTP reaches your trigger price, then activates.
Good to know
- Your stop-loss is triggered by the live LTP at the exchange, checked on every tick — not by what's drawn on the chart. See Why was my stop-loss triggered without the trigger price being hit on the chart?.
- To move your stop-loss automatically as the price moves in your favour, use a Trailing Stop-Loss.