Trading Glossary

Stop Loss

Stop loss is the limit order in which your trade is closed when it reached to the specified price. A stop-loss order is a defensive mechanism used to protect against further losses.Trades are closed at the current market rate, but in a fast-moving market, there may be a gap between this and the stop-loss rate you had set.However, one factor that frequently contributes to a lack of trading success is habitually running stop orders too close to your entry point.