Stop-Loss Order
An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.
Also known as a "stop order" or "stop-market order". Investopedia Says:
In other words, setting a stop-loss order for 10% below the price you paid for the stock would limit your loss to 10%.
It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time. Related Terms:
Bracketed Buy Order
Buy-Stop Order
Hard Stop
Protective Stop
Stop Hunting
Stop Order
Stop-Limit Order
Stopped Out
Weak Longs
Weak Shorts |