Protective Stop
A strategy that aims to limit potential losses to a desired amount by using a stop-loss or stop-limit order. Investopedia Says:
For example, a trader or investor may execute a protective stop by setting a stop-loss order for 10% below what he or she paid for the stock, therefore limiting the loss to 10%. Related Terms:
Above the Market
Below the Market
Hard Stop
Limit Order
Market Order
Stop Order
Stop-Limit Order
Stop-Loss Order |