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.


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

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