Are stoploss(SL) orders a functionality by Zerodha or directly placed onto the exchange?

For eg. if I place a stop loss limit buy order is it directly placed as a stop order on the exchange or Zerodha waits for it to be triggered and then places a limit order on the exchange when it is triggered?


Stoploss(SL) orders are directly placed onto the exchange order system where it remains open. It is not a separate functionality by Zerodha.

The SL order gets activated only when the LTP of the scrip reaches or crosses the trigger price. A market order is sent to the system if an SLM order is triggered and a limit order is sent to the system if an SL order is triggered. The order is timestamped only when it is triggered.

Let’s consider a Buy SL order with trigger price = 100 and limit price = 101, with LTP = 99. The SL order remains open in the exchange order system until the LTP reaches or goes above the trigger price of 100. Once the SL order is triggered, it is timestamped and a Buy Limit order with price = 101 is sent to the exchange. This buy limit order will execute only after all other pending buy limit orders at 101 are executed.

This is the NSE link explaining the same concept.