What is the meaning of stop loss in stock market?

It is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. read more

A stop order to sell becomes a market order when the item is offered at or below the specified price. E.g.: If you have bought 1 share of RIL at Rs. 1,050, you will enter stoploss order at a price below Rs. 1,050, say Rs. 1,020. read more

A stop-loss order may also be referred to as a “stop order” or “stop-market order.” If an investor uses a stop-loss order for a long position, a market order to sell is triggered when the stock trades below a certain price; the order then gets filled at the next available price. read more

That means that the stop loss could be filled at potentially any price, and not necessarily right at the price specified. When a market is moving quickly, a stop loss market order may fill or execute at a way worse price than expected. For example, assume a trader buys a stock at $30 and places a stop loss at $29.90. read more