What Is a Stop-Loss Order?
A stop-loss order automatically sells a position if it falls to a set price, capping losses. It is a
way to take emotion out of selling.
1
Caps the downside
It exits a losing trade before it gets worse.
2
Removes emotion
The plan acts even when fear freezes you.
3
Not perfect
Gaps and whipsaws can fill you at a worse price.
Source: CFGI
Stocks