What is a Sell Stop loss?

We saw earlier how the SELL transaction works. Person A feels SBI will go down from its current price of 300 to 290. He sells SBI at 300, but instead of going down, SBI actually rises to 302, 303 etc. Every rupee SBI rises from 300, person A is incurring a loss. So he has to limit his losses. Thereby he sets a SELL Stop loss of 305. If SBI price reaches 305 then his stop loss will be triggered and he will incur a loss of 5 Rs.

So - sell stop loss is the price point above the price at which the stock is sold to minimize or limit the losses