What is Stop Loss? | Investment Glossary

Conditional orders are useful and useful tools for traders trading in the stock market. Here is some useful information about Stop loss, which is one of them…

While the word stop loss is in English, its Turkish equivalent is ‘stop the loss’. The word that is settled in the language of investors is ‘take-loss’. In simple terms, a stop loss is an order transaction sent to the brokerage house to sell when the price of a security reaches a predetermined level. Often associated with long positions.

Investors who trade stocks in the stock market risk a certain loss. A stop loss is an automatic transaction that prevents this loss from happening any further. In this way, the investor avoids making more losses than they can afford.

Does it protect the investor?

Stop loss, which is useful to protect the investor, may not always protect the investor. Because, the order may not be executed at the given level. In sharp price movements or gap openings, no transactions may be made at the desired price. In this case, the stop loss cannot protect the investor.


labels


Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.

*The article has been translated based on the content of bigpara- GÜNDEM by bigpara.hurriyet.com.tr. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!