Stop-loss
An order that closes your trade automatically at a price you chose in advance.
Place it where your trade idea is clearly wrong, then size the position from that distance. For a buy it sits below the entry, for a sell above it. It is not a guaranteed price, because in gaps and fast markets it can fill worse. Never move it further away.
Related terms
Explained in these lessons
- Why most retail traders lose money
- Free signal channels: what they don't show you
- Leverage in plain words
- 5 gold trading mistakes that drain accounts
- When gold moves: the trading sessions
- The 1% rule: how much to risk per trade
- Stop-loss: the order that keeps you in the game
- How to calculate your lot size
- Losing streaks are normal. Here is how to survive them