Trigger price is the price at which your buy or sell order becomes active for execution at the exchange servers. In other words, once the price of the stock hits the trigger price set by you, the order is sent to the exchange servers.

After the stop-loss order has been triggered, the limit price is the price at which your shares will be sold or bought.

The stop loss (SL) order has two price components to it.

1) The stop loss price, also called the stop loss limit price.

2) The stop loss trigger price, simply called the trigger price.

Please refer to the below example for a clear understanding.

Once the stock price hits Rs 206/-, your order will become active, i.e. your order will be triggered, and a limit order of Rs 208/- will be sent to the exchange. So the stock will be bought either at Rs 208/- or lower than that provided sellers are available at that price point.

A stop-loss order is a passive order. To activate it, we need to enter a trigger price. Above or below the stop-loss price, a trigger price acts as a price threshold and only after crossing this price does the stop-loss order change from a passive order to an active order.

To know more about stop loss orders, please check out this article.

If you are getting an error while placing a stop loss order, please check out this article.

Note: A stop loss order is valid only for a trading day. If your stop loss order is not triggered during the trading day, it shall lapse automatically at the end of the trading session.

You can place a GTT order that stays active across multiple trading sessions(1 year) until the trigger condition is met. To know more about GTT, please click here.