In Zerodha, SL stands for Stop Loss, which is an order type used in trading to limit potential losses. There are two types of stop loss orders in Zerodha: SL-M (Stop-Loss Market) and SL-L (Stop-Loss Limit) orders. The SL-M order is executed as a market order when the trigger price is reached, while the SL-L order is executed as a limit order with a specified limit price.
The trigger price in a stop loss order is the price at which the buy or sell order becomes active for execution at the exchange servers. The stop loss order becomes active only when the market price crosses this trigger price.
Both SL and SL-M orders have their advantages and disadvantages, and the choice between the two depends on the market scenario and the traders discretion. It is important for traders to understand the differences between these order types and choose the one that best suits their trading strategy and risk management.
In summary, SL in Zerodha refers to Stop Loss, and it encompasses different order types such as SL-M and SL-L, which are used by traders to manage and limit potential losses in the stock market.
