Investing in the stock market involves risks, and one of the most effective ways to manage those risks is by using a Stoploss Order. This order type helps traders protect their capital by setting a predetermined price at which a trade will be automatically executed to prevent excessive losses. If you are using Angel One, one of India's leading stockbrokers, understanding how to use stoploss orders effectively can significantly improve your trading strategy.

In this blog, we will explore:

1. What is a Stoploss Order?
2. How to place stop loss order in Angel One
3. How does a stoploss order work in Angel One?
4. How to place stop loss order in a delivery trade in Angel One?
5. A simple example to help you understand it better.

What is a Stoploss Order?

A Stoploss Order is a type of order placed with a broker to sell a security when it reaches a specific price. The primary goal of this order is to limit an investor’s loss on a trade. For example, if you purchase a stock at ₹500 per share and set a stoploss order at ₹480, your stock will be sold automatically if the price drops to ₹480, preventing further losses.

"Cut your losses short and let your profits run." – Jesse Livermore

There are two main types of Stoploss Orders:

1. Stoploss Market Order – The order gets executed at the market price once the trigger price is hit.
2. Stoploss Limit Order – The order gets executed at a specific limit price once the trigger price is reached.

How to Place Stop Loss Order in Angel One?

Placing a stoploss order in Angel One is simple and can be done through their web platform or Angel One app. Here’s a step-by-step guide:

How to place stop loss order in Angel One app?

1. Login to the Angel One App – Open the Angel One app and log in using your credentials.
2. Search for the Stock – Navigate to the stock you wish to trade.
3. Tap on Buy or Sell – If you already own the stock and want to limit losses, select ‘Sell.’
4. Enable Stoploss – After selecting the stock, you will find an option to set a stoploss.
5. Set Trigger Price and Stoploss Price – Enter the trigger price (the price at which the stoploss gets activated) and the stoploss price (the price at which the stock will be sold).
6. Review & Confirm – Double-check the details and confirm your stoploss order.

By following these steps, you can easily learn how to place stop loss order in Angel One and secure your trades from unpredictable losses.

"The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money." – Victor Sperandeo

How Does a Stoploss Order Work in Angel One?

A stoploss order in Angel One works by automatically triggering a sell or buy order when the stock reaches a specified price. Let’s break it down:

1. Buy Trade: If you have bought a stock, you set a stoploss below the buying price to protect against price falls.
2. Sell Trade: If you have short-sold a stock, you set a stoploss above the selling price to limit losses in case the price rises.

"Risk comes from not knowing what you're doing." – Warren Buffett

When the market price reaches the trigger price, the stoploss order is activated and executed at the defined limit price or market price. For Example:

1. You buy Reliance Industries at ₹2500 per share.
2. You set a stoploss order with a trigger price of ₹2480.
3. If the price falls to ₹2480, your sell order will be placed, and the stock will be sold at market price, minimizing further loss.

This is how a stoploss order in Angel One functions, ensuring disciplined risk management.

How to Place Stop Loss Order in Delivery Trade in Angel One?

Many investors use stoploss orders for intraday trading, but they can also be used for delivery-based trades to protect investments in the long term.

1. Steps to Set Stoploss for Delivery Trade:
2. Go to Holdings Section – Open the Angel One app and navigate to ‘Holdings.’
3. Select the Stock – Choose the stock for which you want to set a stoploss.
4. Click on Sell – Since you are holding the stock, you need to place a stoploss under the ‘Sell’ order.
5. Choose Stoploss Order Type – Select ‘SL’ (Stoploss Limit) or ‘SL-M’ (Stoploss Market) order.
6. Set the Trigger Price and Stoploss Price – Enter the price points at which you want the stoploss to be triggered.
7. Confirm the Order – Review and submit the order.

By following these steps, you can understand how to set stop loss order in Angel One app for delivery-based trades and protect your investments.

"Plan your trade and trade your plan." – Alexander Elder

Example of a Stoploss Order in Angel One

To better understand how a stoploss order in Angel One works, let’s take a simple example:

Imagine you purchase Tata Steel shares at ₹900 per share. You want to limit your losses in case the stock price falls. You decide to place a stoploss order:

1. Trigger Price: ₹880
2. Stoploss Price: ₹875

Now, if the stock price drops to ₹880, your stoploss order is activated. If it reaches ₹875, your stock is sold automatically, ensuring that you don’t lose more than ₹25 per share.

This helps investors and traders stick to their risk-management strategies.

Thus, a Stoploss Order is a vital tool for managing risk in stock trading. Whether you are a day trader or a long-term investor, setting a stoploss can help you prevent large losses. Angel One provides a simple and effective way to place stoploss orders for both intraday and delivery-based trades. If you are actively trading, using a stoploss order in Angel One will help you control your risks and safeguard your investments.

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