The stop-loss order is a simple but powerful investing tool. Find out how you can use it to help you implement your stock-investment strategy.

Stop-loss orders specify that a security is to be bought or sold at market when it reaches a predetermined price known as the stop price.

While both can provide protection for traders, stop-loss orders guarantee execution, while stop-limit orders guarantee price.

Traders can limit losses by using stop-loss orders to guarantee execution and stop-limit orders to guarantee price.

Learn how to place a stop-loss order and how traders use stop orders to either limit potential losses or to protect part of their trade profits.

Determining stop-loss is about targeting an allowable risk threshold and should be strategically derived with the intention of limiting loss.

A stop order is an order type that can be used to limit losses as well as enter the market on a potential breakout.

Combine trailing stops with stop-loss orders to reduce risk and protect profits.

When it comes to stop-loss orders, your approach should depend on whether you’re trading ETFs or individual stocks. Learn more in this article.

Limit orders and stop-loss orders do not apply to the trading of mutual fund shares.