A Stop Loss order is a trading strategy by which users can predefine the trigger price and the market price, and the order will be placed automatically with the preset order price once the market price reaches the predefined trigger price.
It is an order placed, which gets activated only when the market price of the relevant scrip reaches or crosses a threshold price, which is called trigger price. The trigger price will be quoted as per the risk you are ready to bear. Until then the order does not enter the market but stays with the exchange. When the market hits the trigger price, the order is forwarded to the exchange. The order gets traded at any price (best price) between the Trigger price and the order price.
Things to know about Stop Loss Order:
Buy Stop Loss Order:
Market Price < Trigger price < Order Price. (Trigger price entered should be greater than the market price)
Sell Stop Loss Order:
Market Price > Trigger price > Order Price. (Trigger price entered should be lesser than the market price)
Screenshot for the same is attached.