Stop Loss Market (SL-M): Converts to a market order when triggered. Stop Loss Limit (SL): Converts to a limit order at the trigger price. Risk: It may not be executed…

It helps to: Limit potential losses in volatile markets. Enforce trading discipline. Reduce emotional decision-making during market fluctuations.

A Stop Loss order is an instruction to automatically sell (or buy, in short selling) a security when it reaches a certain price, to limit potential losses.