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What is a stop-loss order?

A stop-loss order is an instruction to automatically close a position when the market reaches a set price. It helps traders manage risk by limiting potential losses, although in fast-moving markets execution may occur at a different level.

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Articles in this section

  • What is liquidity?
  • What is volatility?
  • What are bid and ask prices?
  • What is a take-profit order?
  • What is a stop-loss order?
  • What is slippage?
  • What is a margin call?
  • What is a spread in trading?
  • What is a pip?
  • What is leverage?
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