That is true in case of very liquid stock, but may not necessarily be true for less liquid stocks that have wider bid-ask spreads. On volatile days we have seen the bid-ask spreads widening sharply and that means your actual execution price may be worse than the price you are looking for. In such cases, your actual loss due to the stop-loss will be more than what you had originally anticipated and provided for. That is a risk you are exposed to in volatile markets, but as we said earlier, that risk is more pronounced in mid-cap stocks and illiquid stocks, not so much in liquid A-Group stocks. For example, you may belong on a stock at Rs.140 and set a stop loss at Rs.136. But a sharp correction in the stock will mean that the stock falls vertically in the midst of thin volumes. That means by the time your stop loss is triggered, your closure price is much lower and your actual loss is higher. The same risk is also possible when you are short in a stock.