You buy a share at ₹100 and plan to sell if it reaches ₹95. It is easy to think the most you can lose is ₹5 per share. That is the planned loss. The actual loss depends on whether the order executes, at what price, and whether all the shares are sold.
A trigger starts an order; it does not complete a sale
A stop-loss order waits for a stated price condition. When that condition is met, the order is released for execution. A trade still needs a matching buyer or seller. NSE’s trading-system explanation describes the difference between an order’s trigger and its limit.
Think of the trigger as an instruction to act, rather than a guaranteed appointment with a buyer at that price. Order types differ across market segments and brokers. Check the actual choices available for your instrument before placing the trade.
A market order gives priority to execution
Where a stop-loss market order is available, reaching the trigger releases a market order. It seeks the available prices rather than protecting one exact price. If there are few buyers or prices move rapidly, the average sale price can be worse than expected.
For example, a trigger of ₹95 might lead to a sale around ₹92 if the next available buyers are there. On 100 shares bought at ₹100, a sale at ₹92 produces an ₹800 loss before costs, not the ₹500 you planned. This is an invented example; the actual price could differ further.
A limit protects a price but can leave you holding the trade
A stop-loss limit order has both a trigger and a limit. Suppose the sell trigger is ₹95 and the sell limit is ₹94. After activation, the order will not sell below ₹94. That restriction helps control the permitted sale price, but it does not create buyers willing to pay it.
If the share falls straight to ₹92 and no buyer meets the limit, the order can remain unfilled. You still own the shares. A partial fill can also leave some shares unsold. “Triggered” and “completed” therefore mean different things.
Prices can skip the number you chose
An announcement after market hours can cause a share to open much lower the next day. Fast moves, thin trading and exchange price restrictions can also make an exit difficult. A chart line passing your chosen level does not establish that your entire order could have traded there.
NSE’s contract information is a useful starting point for understanding the rules of the product you trade. Do not assume a stop facility works identically for shares, index options and individual-stock options.
Size the trade with uncertainty in mind
The distance to the planned stop is useful for calculating a position, but it is not a complete statement of worst-case loss. A smaller position can reduce the financial damage from an unexpected exit. No position-size calculation removes the possibility of a larger loss.
Before entry, decide whether you can cope with a gap, whether holding overnight fits your plan, and what you will do if an order remains open. Keep trading money separate from bills and emergency savings. Our position-sizing guide explains the basic rupee calculation.
Check the order status, not just the alert
After the trigger, check the actual filled quantity, average price and remaining order. A phone notification may say the trigger was reached without confirming a full exit. Learn the broker’s documented procedure for connection problems or order assistance before you need it.
Repeatedly adding duplicate exit orders can create another problem if more than one executes. Check open orders and holdings carefully when changing an order. An automatic stop is a useful instruction, but it needs to be understood as an order—not an insurance guarantee.
Educational content, not a trading recommendation. Prices and quantities are illustrative. Order availability and execution rules vary; check current exchange and broker documentation. Trading can cause substantial losses. Sources checked on 2 October 2026.