How to place an SL-M order on Kite
An SL-M (Stop-Loss Market) order is a conditional market order on Zerodha Kite: it stays dormant until the last traded price touches a user-defined trigger price, then releases a market order to the exchange. Because the execution leg is a market order rather than a limit order, the SL-M virtually guarantees a fill in any liquid stock, at the cost of not controlling the exact exit price. This guide walks through the placement procedure and compares SL-M to the limit-variant SL order.
SL-M vs SL, when to use each
| Scenario | Recommended order |
|---|---|
| Liquid large-cap stock, need certainty of exit | SL-M |
| Illiquid stock, acceptable to risk non-fill at a specific price | SL |
| News event gap risk, must exit regardless of price | SL-M |
| Want a bounded exit price even at the risk of non-fill | SL |
| Options (F&O), market orders restricted on illiquid strikes | SL (required) |
The SL-M order is simpler to configure because it requires only one price (the trigger), not two. Its trade-off is that the executed price may differ from the trigger price if the market moves quickly.
Step-by-step procedure
Log in to Kite
Navigate to kite.zerodha.com or open the Kite mobile app. Authenticate with your Zerodha client ID, password and the six-digit TOTP.
Open the order ticket
Locate the scrip in your marketwatch. On Kite web, hover over the scrip row and click Sell (to protect a long position) or Buy (to protect a short position). The order ticket opens.
Select SL-M as order type
In the order ticket, click or tap SL-M in the Order type selector. Observe that only one price field is visible, the Trigger price field. The Price field (limit price) is greyed out because the execution is a market order. This is the most immediately visible difference from the SL order type.
Enter the trigger price
For a stop-loss sell (protecting a long equity position):
The trigger price must be below the current last traded price (LTP). When the LTP falls to or below the trigger price, the market sell order fires.
Example: You bought shares at Rs 500. You set a stop-loss trigger at Rs 490. If the stock falls to Rs 490, a market sell order is placed and Kite fills the order at the best available bid at that moment, which may be Rs 490.00, Rs 489.80, or slightly different depending on order book depth.
For a stop-loss buy (protecting a short F&O position):
The trigger price must be above the current LTP. When the LTP rises to or above the trigger, a market buy order fires to close the short position.
Enter the trigger price in the Trigger price field. Kite validates that the trigger is on the correct side of the current LTP.
Set product, validity and quantity
- Product: Select CNC for delivery (holdings) positions or MIS for intraday positions. For F&O overnight positions, select NRML.
- Validity: The default and most common option is DAY. The trigger-pending order expires at the end of the session if not triggered.
- Qty: Enter the number of shares. For a stop-loss protecting your entire position, this should equal your open position size.
Submit
Click Sell or Buy in the order ticket. Kite registers the order in its order management system and displays a confirmation toast with an order ID.
Confirm execution after trigger
Navigate to Orders in the Order book. The SL-M order appears with status Trigger pending. This status indicates the order is being monitored by Zerodha’s servers, not yet in the exchange order book.
When the LTP touches your trigger price, the status changes to Open momentarily and then, for liquid stocks, quickly to Complete. Open the completed order to see the average executed price. The trade is simultaneously recorded in the Trade book.
Slippage on SL-M orders
Because the execution leg is a market order, slippage is possible. In normal market conditions for liquid stocks, slippage is minimal (a few paisa per share). In these situations, slippage may be larger:
- Gap opens: If the stock gaps down at market open past your trigger price, the market sell order fires at the best available bid, which may be significantly below the trigger.
- Circuit filter: If the stock hits its lower circuit, there may be no buyers for an extended period. The market order will wait until buyers appear.
- Thinly traded stocks: Wide bid-ask spreads amplify slippage.
For stocks with significant gap-risk (for example, ahead of results or a major event), some traders prefer an SL order with a wide limit-price window over an SL-M, accepting the non-fill risk in exchange for price protection.
What can go wrong
- Trigger price on wrong side. If you set a sell trigger above the current LTP, Kite rejects the order because the trigger condition is already met. Use a plain sell limit order or sell market order in that case.
- Order not triggered. The stock did not reach the trigger price during the session. The order expires. Consider a GTT order for multi-session trigger monitoring.
- SL-M not available for options. SEBI and exchanges restrict market orders on illiquid option strikes. For options stop-loss, use an SL order with an appropriate limit price.
- Position converted without updating stop-loss. If you convert MIS to CNC, your existing SL-M order on the MIS position may need to be replaced with a CNC stop-loss. Check the order book after conversion.
Related guides
- How to place an SL order on Kite
- How to place a GTT order on Kite
- How to place a market order on Kite
- How to modify a pending order on Kite
- How to read the Kite order book
- SL-M order reference article
References
- Zerodha Support, Stop-loss order types, support.zerodha.com.
- NSE India, Stop-loss market order, circular, nseindia.com.
- SEBI, Investor guidance on conditional orders, sebi.gov.in.
- Zerodha Varsity, Stop-loss orders and their mechanics, zerodha.com/varsity.