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What is Stop Loss?

A stop loss is like a safety net for your money when you are trading. It's an order you set to automatically sell if its price drops to a certain level.

For example, if you bought a stock for Rs.100 and set a stop loss at Rs. 90, the moment the stock price hits Rs. 90, it will automatically be sold. This helps limit how much you lose if the price keeps falling, preventing you from losing too much money.

Think of it as setting a "maximum loss" you’re willing to accept. It’s a way to protect yourself from big financial surprises!

Related question’s

What is Trailing Stop Loss?

When I am trying to exit my position or place a Stop-Loss order, why is it being rejected?

My Stop-Loss (SL) order was triggered but it did not get executed. Why did this happen?

How is Stop loss different from regular order?

Why was my stop loss order executed even though the price did not breach my trigger?

Last updated: 8 Months Ago

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