Stop-Loss Order
Financial term in the Investing category
Definition
An order to sell a stock when it reaches a specific price, limiting potential losses. Becomes a market order when triggered, so execution price isn't guaranteed.
Related Terms
Market Order
An order to buy or sell a stock immediately at the best available current price. Guarantees execution but not price. Contrasts with limit orders that specify price.
Limit Order
An order to buy or sell a stock at a specific price or better. Provides price control but may not execute if the price isn't reached. Contrasts with market orders.
Frequently Asked Questions
What is Stop-Loss Order?
An order to sell a stock when it reaches a specific price, limiting potential losses. Becomes a market order when triggered, so execution price isn't guaranteed.
Why is Stop-Loss Order important in personal finance?
Stop-Loss Order is an important investing concept that helps individuals make better financial decisions. Understanding Stop-Loss Order can improve your financial planning and help you achieve your money goals.
How does Stop-Loss Order relate to Market Order?
Stop-Loss Order and Market Order are related financial concepts. An order to buy or sell a stock immediately at the best available current price. Guarantees execution but not price. Contrasts with limit orders that specify price.
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