Stop-Loss Order

What Does Stop-Loss Order Mean?
An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.

Also known as a "stop order" or "stop-market order".

Investopedia explains Stop-Loss Order
In other words, setting a stop-loss order for 10% below the price you paid for the stock would limit your loss to 10%.

It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.

Related Terms

Bracketed Buy Order
Buy-Stop Order
Hard Stop
Protective Stop
Stop Hunting
Stop Order
Stop-Limit Order
Stopped Out
Weak Longs
Weak Shorts
More Related Terms

Related Links

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Can a stop-loss order be used to protect a short sale transaction?
How does a stop-loss order work?

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