Last Updated: Mar 19, 2024 Value Broking 2 Mins 1.4K

Investing in the financial markets involves risks, and it is crucial for traders to employ strategies that can mitigate potential losses. One such strategy is the effective use of stop-loss orders. In this article, we will explore what stop-loss orders are, how they work, and how you can use them to safeguard your investments.

What is a Stop-Loss Order? 

A stop-loss order is a type of buy or sell order that traders place to limit their losses on a particular trade. It is designed to automatically trigger a market order when the price of a security reaches a specified level, known as the trigger price or stop price. By doing so, stop-loss orders help traders protect their investments by minimizing potential losses if the market moves against their positions.

How to Use Stop-Loss Orders:

Here’s how to Place a Stop Loss order in Zerodha Kite

Step 1: Log in to the Kite mobile app and navigate to your watchlist.

Step 2: Select the stock you intend to sell from your watchlist.

zerodha stop loss

Step 3: Upon selecting the stock, you will see its entire details including market depth, bids, number of orders, offers, and quantity, along with the “buy” and “sell” options. Click on “sell” or “buy”.

Step 4: Enter the quantity of stock you want to sell and tick the “MIS” box, as it’s an intraday trade. MIS stands for “Market Intraday Square Off”, meaning you need to square off your open “sell” position by buying it back before the market closes.

zerodha stop loss trigger

Step 5: Under the order type, choose “SL” (Stop Loss) as your order type.

Step 6: This is a stop-loss limit order, so you need to set a “stop-loss trigger price” and a “limit price”

Step 7: Once the stock hits the trigger price, the order will be executed at the limit price you’ve set. Stop-loss orders help limit losses and can provide a good margin of safety.

Now, you may also use Stop Loss on advanced orders available under the “variety” section, which includes BO (Bracket Order), CO (Cover Order), and AMO (After Market Order)..


Stop-loss orders are valuable tools for risk management in trading. By setting appropriate trigger prices and choosing the right order type, you can protect your investments and limit potential losses. Remember to regularly review and adjust your stop-loss orders to align with changing market conditions.