markets · beginner
Stop-loss
A stop-loss is an order that becomes active when the market reaches a trigger price to limit further losses.
On Indian broker platforms, stop-loss limit orders need both a trigger and a limit price.
Gaps across circuit limits can cause a stop to fill poorly or not at all.
Stop-losses are widely used in intraday and F&O trading for risk control.
A stop order is an execution instruction, not a guarantee of the intended exit price.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.