What is Stop Loss ๐Ÿคโ€ฆ.

Definition: Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places with the broker/agent by paying a certain amount of brokerage. Stop-loss is also known as โ€˜stop orderโ€™ or โ€˜stop-market orderโ€™. By placing a stop-loss order, the investor instructs the broker/agent to sell a security when it reaches a pre-set price limit.

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