Zerodha Trading: How to Set Stop Loss Properly

If you’re new to stock trading or even if you’re a regular Zerodha user, knowing how to set Stop Loss and Target in Zerodha can protect your capital and lock in profits. In this guide, we’ll walk you through every step in simple terms-so you can trade smartly and confidently.

🔍 Stop Loss and Target

• Stop Loss (SL): A predefined price at which your trade will automatically close to prevent further losses.
• Target (or Take Profit): A predefined price at which your trade will automatically close to secure your profit.

Setting these levels ensures you don’t need to monitor your trades all the time and helps reduce emotional trading.

🛠 How To Set Stop Loss and Target in Zerodha?

Zerodha offers multiple order types for setting stop loss and target. Let’s break it down based on Intraday (MIS) and Delivery (CNC) trading.

📌 Method 1: Set Stop Loss & Target Using Bracket Order (For Intraday Trades)

Note: As of now, Bracket Orders are available only on Kite API and not in Kite web/mobile, so use Method 2 for practical use in the Kite app.

📌 Method 2: Manually Set Stop Loss and Target Using Two Orders (For All Types of Trades)

This is the most common and practical method in 2025:

✅ Step-by-Step Guide:

1. Log in to Zerodha Kite App or Web
2. Place a Buy or Sell Order
   • Choose MIS for Intraday or CNC for Delivery
   • Enter your entry price and quantity
3. Place a Stop Loss Order
   • Go to Orders > Click on “Sell” (for SL)
   • Select SL or SL-M (Stop Loss Market) order
   • Enter trigger price below your entry (for Buy trades)
4. Place a Target Order
   • Again, click “Sell”
   • This time, choose Limit Order
   • Enter your target price above your entry

You’ll now have 2 exit orders: One for Stop Loss and one for Target. Cancel the other once one gets executed.

📊 Example (Intraday Buy Trade)

• Bought Reliance @ ₹2,500 (MIS)
• Set Target @ ₹2,550 (Limit Order)
• Set Stop Loss @ ₹2,470 (SL Order with trigger)

If the stock reaches ₹2,550, your profit is booked. If it falls to ₹2,470, your loss is limited.

⚠️ Tips for Setting Stop Loss and Target

• Don’t set SL too tight or too wide — follow support & resistance levels
• Always cancel the unexecuted order once your target or SL is hit
• For safe trading, keep Risk:Reward ratio at least 1:2
• Use technical indicators like Moving Average, RSI, or Bollinger Bands for better entries and exits

🚀 Bonus: Use GTT Orders (For CNC Long-Term Trades)

Zerodha’s GTT (Good Till Triggered) order allows you to set Target and Stop Loss in one go—great for delivery trades!

How to Set GTT Orders:

1. Select the stock > Click on “Create GTT”
2. Set Trigger Price for both Stop Loss and Target
3. Zerodha will place the order automatically when price hits your trigger

Perfect for long-term traders who don’t want to monitor trades daily.

🧠 Final Words

Mastering how to set Stop Loss and Target in Zerodha is essential for every trader. Whether you’re into intraday or delivery, using the right exit strategy can protect your capital and grow profits consistently.

Set your strategy. Stick to it. Trade smart with Zerodha. ✅

🔎 FAQs

❓ Can I place both Stop Loss and Target in Zerodha at once?

Yes, with GTT orders for CNC or manually via two separate orders for intraday.

❓ What is the best Stop Loss percentage?

Ideally between 1% to 2% for intraday, and 5% to 10% for delivery. Always use proper analysis.

❓ Is SL-M better than SL?

SL-M guarantees execution at market price. Use SL-M when volatility is high.

If you found this guide helpful, share it with fellow traders and bookmark it for quick access.

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