#StopLossStrategies A stop-loss strategy is a crucial risk management tool used in trading to limit potential losses on a trade. It involves setting a specific price at which your position will be automatically closed if the market moves against you. Think of it as a safety net for your trades.

Here's a breakdown of key aspects of stop-loss strategies:

What is a Stop-Loss Order?

A stop-loss order is an instruction you give to your broker to sell (for a long position) or buy (for a short position) an asset when its price reaches a certain level, known as the stop price. Once this price is triggered, the stop-loss order typically becomes a market order, meaning it will be executed at the best available price at that time.

Why Use a Stop-Loss Strategy?