#StopLossStrategies

A stop-loss order is a tool used in trading to limit potential losses on a trade. When you place a stop-loss order, you set a specific price at which your exchange will automatically sell your asset. This is designed to protect your investment if the price drops unexpectedly.

For example, if you buy a cryptocurrency at $1,000 and set a stop-loss at $950, your exchange will automatically sell your crypto if the price falls to $950. This limits your loss to $50 (excluding fees).

Stop-loss orders can be especially useful in volatile markets like crypto, where prices can change rapidly.