What is the Full Form of SL in The Share Market?

The SL Full Form in Share Market is Stop Loss. What this means is pretty simple: it’s a command you give your broker to either buy or sell a share when its price hits a certain level. The main goal here is to keep your losses in check. Imagine you’ve bought a share for ₹100, but you don’t want to lose more than ₹5 on it. You can tell your broker to sell it off if the price dips to ₹95. That is pretty much what Stop Loss or SL is in the Share Market.

What Is A Trailing Stop-Loss Order?

It’s a bit like the basic stop-loss, but with a twist, it goes up as the stock’s price goes up, keeping a set distance below the current price. This is great because it means you can secure profits as the price climbs, without bailing out too early if things start to dip. Say you’ve set it at 10% below the purchase price; as the price of the stock increases, so does your stop-loss level, ensuring you get to keep a chunk of the profit no matter what.

Advantages of Using a Stop-loss Order

Looking at the pros, using a stop-loss order can really help you cut down on potential losses. It makes selling automatic, which is a big plus for keeping a good risk-reward balance and sticking to your trading plan. But yeah, sometimes, a stock’s price might just take a quick dip and recover, but if it hits your stop-loss in that dip, you’re out of the game early.