Stop-loss order
Trading & ordersAlso called: Stop-loss
A resting order that activates only when price reaches a trigger level, used to cap losses.
In plain terms
Your pre-committed exit. It does not protect you against an overnight gap.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A resting order that activates only when price reaches a trigger level, used to cap losses.
Your pre-committed exit. It does not protect you against an overnight gap.
The tendency for stop-loss orders to accumulate at the same obvious levels.
Below swing lows, at round numbers, under moving averages — every book recommends the same place, so everyone uses it.