Risk
What is Stop Loss?
An automatic sell order if a stock drops too much
Full Explanation
You set a stop loss at, say, 10% below your buy price. If the stock drops that much, it sells automatically so you don't lose more.
Pro Tip
Stop losses are a core risk tool for active traders. Long-term investors often skip them intentionally — different strategies, different rules. Know which style fits you.
Related Risk Terms
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