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📖 Glossary/Stop-loss
🧠 Psychology

Stop-loss

Also called: sl, stop

A stop-loss is an order placed in advance that closes your position if price moves against you, capping your loss. Defining it BEFORE you enter (and never widening it along the way) is the golden rule. Placing it requires a trade-off: too tight, and you get stopped out by noise; too wide, and you risk too much.

See also