what is slm in zerodha

SLM in Zerodha stands for Stop Loss Market order. It is a type of order used in trading to limit potential losses by placing a lock on the loss amount, ensuring that the investor only loses what they can afford to. When a stop loss market order is triggered, it results in the placement of a market order at the prevailing market price, which helps in quickly exiting a position to limit losses. This type of order is particularly useful in volatile market conditions, as it allows for a swift response to price movements. Zerodha, a prominent brokerage firm in India, allows traders to place SLM orders to manage their risk effectively.