A stop-loss order is a buy or sell order, placed by a trader with the intention to limit his losses. Stop Loss Buy Order = Here the trader intends to buy a script at or above the market rate. Stop Loss Sell Order = Here the trader intends to sell a script at or below the market rate.   There are 2 types of Stop-Loss order: Stop-Loss limit order: The trader will enter both limit and trigger price. The intention of the trader is to activate the order using trigger price and execute it at or above the limit price. Example: Mr. X has bought a share at Rs. 100. He intends to place a Stop-Loss Sell Limit Order. Here the trigger price is Rs. 96 and the limit order price is Rs. 95. The effect of this is that the order is activated as soon as the market prices reach the trigger price of Rs. 96 and will get executed if the market prices sustain at or above the limit price of Rs. 95.   Stop-Loss Market Order: The trader can’t enter the limit price and will enter only the trigger price. Since there is no limit price, the order will get executed at the next available market price after it reaches the trigger price. Example: Mr. X has bought a share at Rs. 100. He intends to place a Stop-Loss Market Order where the trigger price is Rs. 96. The effect of this is that as soon as the market price reaches Rs. 96 (trigger price) the order gets executed at the next available market price.

The limit order is a buy or sell order where the trader can specify the price at which he intends to buy or sell a script. Here the trader is aware of the price at which the order will get executed. Limit Buy Order = Here the trader intends to buy a script at or below the market rate. Limit Sell Order = Here the trader intends to sell a script at or above the market rate.

This is an optional add-on protective feature to a Market Order. It allows a trader to set a price range within which the orders can get executed since trader is never sure of the buy / sell price in a market order. Example Scenario 1: Suppose you place a buy market order for 1,000 stock at the current market price of Rs. 20. Let’s understand how the orders will be filled up: SL NO Quantity Price Total Buy Price 1 150 20 3000 2 100 20.20 2020 3 50 20.35 1017.5 4 75 20.60 1545 5 200 20.90 4180 6 100 21.20 2120 7 125 21.80 2725 8 200 22.20 4440 Total Quantity = 1000   Total Buy Amount = 21047.5   So,  Average Buy price             =          Total Buy price / Quantity =          21047.5                          /                               1000 =          21.0475   Scenario 2: Suppose you place a buy market order for 1,000 stock at the current market price of Rs. 20 and place a Market-With-Protection @ 5%. So, here because of Market-With-Protection @ 5% of Rs. 20. The orders will stop getting executed after the price breaches Rs. 21 which is +5% of Rs. 20 [Rs. 20 + 1 (Rs. 20 * 0.05)]   Let’s understand how the orders will be filled up: SL NO Quantity Price Total Buy Price 1 150 20 3000 2 100 20.20 2020 3 50 20.35 1017.5 4 75 20.60 1545 5 200 20.90 4180 Total Quantity = 575   Total Buy Amount = 11762.5   So here only 575 orders will be executed and the remaining 425 (1000 – 575) orders will be pending until the price comes at or below Rs. 21.

Market order is a quick buy or sell order which gets executed at the current market price. Here the trader expects the current market price to be the buy/sell price.