Query regarding Stoploss orders

When we put a stop loss order, is it queued at Zerodha or NSE? I am asking this question to understand the risk of SL orders. For instance, if connectivity between Zerodha and NSE is broken, option sell orders will be at high risk if Stoploss orders (Trigger Pending Status) are with Zerodha only.
Can you please clarify?
  • sujith
    It is queued at the exchange.
  • humble_trader
    thanks @Sujit for the prompt reply
  • krishmetra
    @sujith can you explain the risk involved in placing cover orders in case if the stop loss was not executed. For example, I have a cover order long position for stock A, and my stop loss is placed at 1.5% below my executed price. If there is a sudden 20% downside movement in the stock price (with a gap down) within few secs, then what are the chances that loss incurred may exceed the margin ?
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