Stop-loss orders are important tools for managing investment risks and protecting capital. A stop-loss order automatically sells a security when it reaches a predetermined price, limiting potential losses. This strategy helps investors remain disciplined, preventing emotional decisions during market volatility. Common types include fixed stop-loss, which sets a specific price, and trailing stop, which adjusts according to market movement to lock in profits. Stop-losses are particularly useful in rapidly changing markets where prices can change quickly. However, they do not guarantee execution at the exact price, especially during gaps. When used wisely, stop-loss strategies help investors manage risks and focus on long-term financial goals.