Stop Loss LTP vs Close of Candle

Hello Experts,

I am studying certain strategies in TT to help me build my own code. Have a question on Stop Loss

Q- Most of the times i have seen on strategies and also on youtube TT videos, that SL is placed based on LTP

LTP >= Traded Instrument * 1.40 (40% is the stop loss)

On one of the strategies i saw position ( Close) used

Position (Close (symbol(Traded Instrument (,),1m,All) >= Traded Instrument * 1.40 (40% is the stop loss)

Can we use either of these in all scenarios or Postion (Close) has to be used on specific scenarios?
I am in learning phase, so any help or documentation would help

Tagging TT team as well @Nelson

Thank You
Sahadev