#StopLossStrategies

A stop-loss order is a market order placed with a broker to buy or sell a security when it reaches a certain price. This is done to limit losses in the event that the price of the security moves against the position taken by the trader.

A stop loss on a long position would be an order to sell at a lower price than the entry price. A stop-loss order on a short position would be set above the entry price.