What is Trigger Price or Stop loss order?

This allows the trading member to place an order, which gets activated only when
the Last traded price (LTP) of the Share is reached or crosses a threshold price called
as the trigger price. The trigger price will be as on the price mark that you want it to
be.

When a trigger price (TP) is specified in a limit order, the order becomes one, which
is conditional on the market price of the stock crossing the specified TP. The order
remains passive (i.e. not eligible for execution) till the condition is satisfied. Once the
last traded price of the stock reaches or surpasses the TP, the order becomes
activated (i.e. eligible for execution by being taken up in the matching process of the
exchange) and then on behaves like a normal limit order.

It is used as a tool to limit the maximum loss on a position.

Examples:

Trigger Price - Buy Order

'A' short sells TCS shares at 1300 in expectation that the price will fall. However, in
the event the price rises above his buy price 'A' would like to limit his losses. 'A' may
place a limit buy order specifying a Trigger price of 1325 and a limit price of 1330.
The trigger price (TP) has to be between the last traded price and the buy
limit price. Once the market price of TCS breaches the TP i.e. 1325 the order gets
converted to a limit buy order at 1330.

Trigger price - Sell Order

'A' buys TCS at 1290 in expectation that the price will rise. However, in the event
the price falls, 'A' would like to limit his losses. 'A' may place a limit sell order
specifying a trigger price of 1270 and a limit price of 1265. The trigger price has
to be between the limit price and the last traded price at the time of placing
this order. Once the last traded price touches or crosses 1270, the order gets
converted into a limit sell order at 1265.

Important
Please note that in a buy order the Trigger Price (TP) cannot be less than the last
traded price. This is treated as a normal order because the condition that the last
traded price should exceed the trigger price for a buy order is already satisfied.
Similarly, in case of a TP sell order the TP should not be greater than the last traded
price for the same reason.