#StopLossStrategies A stop loss is a pending order that closes a position with losses if market events do not develop in a favorable scenario for the trader, broker, or investors.

If a buy position is opened, the stop loss will close it in the event of a downward price movement. At a price lower than the opening price. A sell position will be closed by stop loss if prices rise after entering the market.

Functionally, a stop loss is an order whose purpose is to limit the potential losses of a trader.

Why is the stop loss important in trading?

For beginners, it is not always clear what a stop loss is, as there is a crossroads in its description about its essence, which is why traders do not consider its use as a necessity. Due to this imprecision, one of the most common conclusions is "the stop loss is for the fearful". "Place a stop loss to reduce losses". But we are all brave here and can endure any loss :)

The stop loss is not a kind of "insurance", but an INTEGRAL part of a trading strategy.