difference between SL and SL-M order

An SL (stop-loss limit) order becomes a limit order once the trigger price is hit, so it can trigger and never fill if price runs past your limit; an SL-M (stop-loss market) order becomes a market order at the trigger, so it fills, possibly well away from the level you set. For a genuine risk stop the SL-M is the usual choice, because a bad fill is survivable while remaining in a position you believed was closed is not.

GTT stands for Good Till Triggered — an instruction that rests with your broker for months and is sent to the exchange only when your trigger price is reached. It is useful for positional stops and target exits you will not be watching for, but it is a broker-side facility rather than an exchange order type, so until it triggers there is nothing sitting in the order book and the behaviour on a gap day varies from broker to broker.

an order that turns into a market order once the trigger price is reached is called a

A stop-loss market order, shown as SL-M on most Indian broker terminals. It sits inactive until the trigger price trades, at which point it is released as a market order and executes against whatever is available in the book. That guarantees the exit happens but not the price — on a gap the fill can be well beyond the trigger.

will a GTT order fill if the stock gaps past the trigger

It will trigger, but a GTT that places a limit order may not fill if the stock has already gapped beyond that limit — the order is released, sits unexecuted, and you stay in the position. This is the one thing worth testing with your own broker in small size before relying on a GTT for real risk management, because what happens between trigger and fill on a gap is a broker implementation detail rather than an exchange rule.

what happens to an AMO order when the market opens

An after-market order is held by your broker outside trading hours and released to the exchange when the order window opens, so it participates in the opening rather than in a settled market. Placed as a market order it executes at whatever the opening price turns out to be, which can be several percent away from the previous close. Specifying a limit price on an overnight order is how that surprise is normally avoided.

GTT, AMO, SL-M and bracket orders

You can have a correct view and a well-sized position and still lose money because of how the order was placed. Order mechanics are dull, and they are where a written plan either gets executed or quietly becomes something else.

The order types worth knowing

Type	What it does	When to use it	The catch
Limit	Executes at your price or better	Almost always, in anything but the most liquid names	May not fill at all
Market	Executes immediately at whatever exists	When getting out matters more than the price	In a thin book the fill can be far away
SL (stop-loss limit)	Becomes a limit order at a trigger	Controlled exits	In a fast move it may not fill and you stay in
SL-M (stop-loss market)	Becomes a market order at a trigger	When you must be out	Fill can be well beyond the trigger on a gap
GTT	Rests for months until triggered	Positional stops and target exits	Not a real exchange order until triggered
AMO	Queued outside market hours	Placing before the open	Executes into the opening auction, often badly
Iceberg	Splits a large order into slices	Large orders in mid-liquidity names	Takes time; partial fills likely
Bracket / cover	Entry with attached stop and target	Intraday discipline	Squared off automatically; less flexible

Think of it like this

Meter ya fixed rate

Agreeing to the meter means you definitely get the ride at an unknown cost. Insisting on ₹120 means you know the cost and might not get a ride at all.

In the market

Market order versus limit order, precisely. In an emergency you take the meter. When you have time, you name the price.

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Increase the size and watch a market order eat through levels. This is why the order type matters more in thin names than in liquid ones.

GTT, and its one limitation

Good Till Triggered orders rest for months, which is genuinely useful for positional traders who cannot watch the market. The limitation is important: until triggered, a GTT sits with your broker rather than at the exchange.

What GTT is and is not

Genuinely useful

A stop that survives months without attention
A target exit you will not be watching for
Buying a level you expect to be revisited
Removes the need to be at a screen

Understand the limits

Not resting at the exchange until it triggers
Depends on the broker's systems working that morning
Can be rejected if margin is unavailable at trigger time
Behaviour around gaps varies by broker

Matching the order to the situation

Four defaults worth adopting

1
Entries: limit orders
You chose the level for a reason. If the price runs away, the setup you planned no longer exists — which is information rather than a problem.
2
Risk stops: SL-M
The purpose is being out. A bad fill costs money; an unclosed position can cost far more.
3
Target exits: limit
No urgency, so name the price. Partial fills at your level are fine.
4
Large orders: split them
Iceberg or manual slices. One large market order in a mid-cap moves the price against you and the impact is permanent.

Check yourself

You need to be certain of exiting if a level breaks. Which order type is most appropriate?

Simple bhasha mein

Meter pe chaloge ya rate fix karoge

"Meter pe chalo" — sawari pakki, kitna lagega pata nahi. "₹120 mein chaloge?" — rate pakka, sawari milegi ya nahi pata nahi. Market aur limit order bilkul yahi hain. Aur yaad rakho: stop loss nikalne ke liye lagaya hai, toh SL-M lagao — warna trigger ho jaayega aur bikega hi nahi.

What to remember

A correct view can still lose money through order mechanics.
SL-M fills and SL may not — for a genuine risk stop, choose certainty of exit.
GTT rests with your broker, not the exchange, until it triggers.
AMO market orders execute into the opening auction, often far from the last close.
Limit for entries and targets, SL-M for risk stops, split large orders.

You reached the endMark it done and keep your streak going.

Up nextHow much of that move was just the index Previous: Splits, bonuses and why your chart lies

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Common questions

Short, direct answers to what people ask about this topic.

difference between SL and SL-M order: An SL (stop-loss limit) order becomes a limit order once the trigger price is hit, so it can trigger and never fill if price runs past your limit; an SL-M (stop-loss market) order becomes a market order at the trigger, so it fills, possibly well away from the level you set. For a genuine risk stop the SL-M is the usual choice, because a bad fill is survivable while remaining in a position you believed was closed is not.
gtt order meaning: GTT stands for Good Till Triggered — an instruction that rests with your broker for months and is sent to the exchange only when your trigger price is reached. It is useful for positional stops and target exits you will not be watching for, but it is a broker-side facility rather than an exchange order type, so until it triggers there is nothing sitting in the order book and the behaviour on a gap day varies from broker to broker.
an order that turns into a market order once the trigger price is reached is called a: A stop-loss market order, shown as SL-M on most Indian broker terminals. It sits inactive until the trigger price trades, at which point it is released as a market order and executes against whatever is available in the book. That guarantees the exit happens but not the price — on a gap the fill can be well beyond the trigger.
will a GTT order fill if the stock gaps past the trigger: It will trigger, but a GTT that places a limit order may not fill if the stock has already gapped beyond that limit — the order is released, sits unexecuted, and you stay in the position. This is the one thing worth testing with your own broker in small size before relying on a GTT for real risk management, because what happens between trigger and fill on a gap is a broker implementation detail rather than an exchange rule.
what happens to an AMO order when the market opens: An after-market order is held by your broker outside trading hours and released to the exchange when the order window opens, so it participates in the opening rather than in a settled market. Placed as a market order it executes at whatever the opening price turns out to be, which can be several percent away from the previous close. Specifying a limit price on an overnight order is how that surprise is normally avoided.