Risk & performance

Stop-loss

Also known as: stop, SL

A stop-loss is a predefined order that closes a position once price reaches a level, capping the loss on the trade.

It enforces discipline by defining risk before entry. Stops are often placed beyond a structural level or a multiple of ATR so normal noise doesn't trigger them. A position's stop, together with its size, determines how much you risk.

Related terms

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