đą WHAT IS STOP LOSS ???
A stop-loss is a risk management strategy used in trading and investing. It's an order placed with a broker to sell a security (such as a stock or cryptocurrency) when it falls to a certain price, known as the stop price. This limits potential losses if the price moves unfavorably.
Here's how it works:
1. You buy a security at a certain price (e.g., PKR 100).
2. You set a stop-loss order at a lower price (e.g., PKR 90).
3. If the security's price falls to PKR 90, the stop-loss order is triggered, and the security is sold at the next available price.
Stop-loss orders can be used to:
- Limit potential losses
- Protect profits
- Automatically close positions when you're not monitoring the market
Keep in mind that stop-loss orders don't guarantee a sale at the exact stop price, as market conditions can be volatile. However, they can help manage risk and minimize losses.
Do you have any specific questions about stop-loss orders or would you like to know more about trading strategies?