Stop-loss order
Also called: stop order, stop loss
A stop-loss order sells automatically once a stock falls to a set price, to cap how much you can lose.
When the stop price is hit, it usually becomes a market order, so in a sharp drop it can fill below the stop.
In Journey Shares
Set a price-point order to sell if a person drops to your stop price.
Related terms
- Limit order: A limit order buys or sells only at a set price or better, so you control the price but it may never fill.
- Risk management: Risk management in trading is limiting how much you can lose, through position sizing, stop-losses, diversification and avoiding too much leverage.
Guides
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.