b9_1155what is stop-loss (stop)?
a planned exit price where a losing trade is closed.
it is usually placed as a stop order. it is a request, not a promise: in fast markets the fill can be worse than planned, or not happen at all.
related words
- risk amount the money you are willing to lose on one trade if the stop fills as planned (account × risk %).
- stop distance the distance, in %, from the entry price to the stop.
- position sizing deciding how big a trade is, based on how much you are willing to lose if it's wrong.
part of the topic risk: free articles, more words and the guide.
checked . education, not advice. found a mistake? see corrections.