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Stop-Loss Order


Stop-Loss Order   An order to sell when the price of the stock declines to, or below, a stated price. The purpose of this is to reduce the amount of loss that might occur.
 


Additional comments:

Often used to minimize exposure to losses if the market moves against an investor’s position.
As an example, an investor who is long USD at 156.27 might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.

Related Terms

Stop Limit
This is an order that says once the stock's market price touches or goes below the stop limit order price, the ...


Stop Order
A stop order is an order to buy or sell a stock once the price of the stock reaches a specified ...


Stop Market
This type of stop loss order is known by various names, such as "stop," "stop loss," and "stop market." This is ...






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