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

Buy Stop
A buy order where the price stipulated is higher than the current price. The rationale here ...

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