$ETH
#RiskRewardRatio What is a Stop-Loss Order?
The execution price is a fundamental part of stop-loss orders. A stop-loss order allows traders to limit their losses by placing an order when a specified execution price is reached. When the security's price reaches the execution price, the stop-loss order begins to execute automatically, without the need for any human intervention.
There are two types of stop-loss orders:
Market Stop-Loss Order: Execution price only
In this case, once the execution price is reached, the stop-loss order is converted into a market order and executed as quickly as possible at the best price.
Limit Stop-Loss Order: Execution price and specified execution price
In this case, when the security's price reaches the execution price, the stop-loss order is converted into a limit order and executed at the same execution price or at a better price than the execution price.
However, it should be remembered that even in the case of activating a stop-loss order, there is no guarantee of execution if the price moves very quickly.
