What Is a Stop Loss? Definition and How to Use It

A stop loss exits your trade automatically to limit losses — here is exactly how it works for beginners.

A stop loss is an order placed with a broker to buy or sell once a stock reaches a certain price. It is designed to limit an investor’s loss on a position. This glossary entry explains the concept clearly.

This content is for educational purposes only and is not financial advice.

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The content on haimatrading.com is for educational purposes only. Not financial advice. Always consult a qualified financial advisor before investing.