Difference between SL & SLM orders (beyond the basic understanding)

Does a Stop Loss order with limit price far from trigger price works exactly like Stop Loss Market order? Provided there is sufficient liquidity to be settled within the limit price.

Does exchange handle these with different priorities?

This is how the limit order works: Limit Order allows you to buy or sell a stock at the price you’ve specified or a better price.

If you’ve placed a limit buy order, this will execute at the price you’ve set or a lower (better) price. Similarly, limit sell order will execute at the price you’ve set or higher (better) price.

If upon triggering, the price moves away from the limit price you’ve set, ie. higher than the price set for buy order and lower than the price set for sell order, the order will remain pending.

Also, if your buy limit order is above and the sell limit order below the CMP, it’ll execute at best available price in the market.

Market order is straightforward. Once triggered, it’ll execute at the best available price in the market.

Do check out this support article which explains Stoploss orders in detail.

Priority of order matching in this case is same as for SLM right?

no in limit order when the price comes to the entered price only at that time it will be sold or bought , whereas in slm order as soon as triggered price is triggered the position will be executed at present available price this will be helpful in step market falls