| 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. This is sometimes called a "stop-market order".
|

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.
|

The Stop-loss Order - Make Sure You Use It - It's a simple but powerful tool that can help you implement your stock-investment strategy. Find out how.
Trailing-Stop Techniques - The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
The Basics Of Order Entry - Taking control of your portfolio means knowing when to use particular orders and if they pose added costs.
Limiting Losses - It is impossible to avoid them completely, but there is a systematic method you can use to control them. |
|
Related Terms
 |
|