# Stop-Loss Market

Attempt market-style execution after a downside condition while accounting for gaps, protection, and partial fills.

A stop-loss market order triggers after a downside condition and then attempts immediate market-style execution.

## What it does

A **stop-loss market** trigger watches for a downside condition, then attempts to submit a market-style child order.

It prioritizes an execution attempt after activation rather than setting one fixed execution price.

## How it works

1. **Watch:** Last Price is compared with the configured condition.
2. **Activate:** the condition is met and Polyester attempts to admit the child order.
3. **Execute:** the market-IOC child takes eligible liquidity within configured price protection.
4. **Reconcile:** child orders, fills, and balances establish the final outcome.

The trigger and child have separate states. An accepted trigger does not prove that the later child is admitted, filled, or settled.

> **This is not a guaranteed exit**
>
> The child can fill across several prices, fill only partially, or receive no fill within current protection and liquidity.

## When to use it

- **Use it when an execution attempt matters most.** Stop-Loss Market fits a downside condition where attempting to reduce exposure matters more than one fixed execution price.
- **Avoid it when a precise exit price must be protected.** Choose Stop-Loss Limit when selling below a defined price would be worse than leaving some or all of the position open.

Confirm the active market, eligible side, quantity, trigger condition, price source, and price-protection control shown by the current form.

## Example

Let's say Bitcoin is currently trading at **100,000 USDT**. You hold **0.01 BTC**, worth about 1,000 USDT, and want to reduce your exposure if the price falls to **95,000 USDT**. Because attempting to exit matters more to you than receiving one exact price, you choose Stop-Loss Market.

1. A Last Price trade at 95,000 USDT activates the stop.
2. The best eligible bid can buy 0.006 BTC at 94,900 USDT, so the Market child fills that amount first.
3. The next eligible bid can buy the remaining 0.004 BTC at 94,850 USDT, completing the order.

**Result:** You sell the full 0.01 BTC for 948.80 USDT before fees, at an average price of 94,880 USDT.

*This is example liquidity. A real child order can fill partially or receive no fill when eligible bids do not exist within price protection.*

## What to watch

- A gap can move available prices before the child is admitted.
- Price protection can produce a partial fill or no fill.
- Balance, policy, or market state can reject the child.
- Canceling after activation can race with execution.
- Verify the trigger in [Order Triggers](https://testnet.polyester.com/docs/user-docs/trade/widgets/order-triggers), then verify fills in [Order History](https://testnet.polyester.com/docs/user-docs/trade/widgets/order-history).