Glossary · from the DESK dictionary
Stop-Loss Order
An order to automatically sell a security once its price falls to a specific level, to limit potential losses on an existing position.
In plain words
Serves as a foundational automated risk management tool, requiring no constant manual monitoring.
What it means for traders
A fundamental practical concept, widely used in risk management for practically every trader.
Common pitfalls
Can result in execution at a substantially worse price than intended, during sudden price gaps.
Related terms
Either-Or Order · Sell Stop Order · Trailing Stop Order
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.