Stop Loss
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| It is advisable to protect loss potential by entering an order that will "stop" the trade if the stock or option trades at a certain price. A "Stop Loss" order is such an order. | ||
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Additional Comments:
Be aware that a Stop Loss order does not protect from gaps. If a stock or option gaps past your price and opens lower, you will be taken out of the trade at the lower price.
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Related Terms: | ||
Stop Market This type of stop loss order is known by various names, such as "stop," "stop loss," ... Stop Order A stop order is an order to buy or sell a stock once the price of ... Stop Limit This is an order that says once the stock's market price touches or goes below the ... | ||
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