Definition: Stop-Loss Order - Examples & Advice | Bolder Money

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Definition

An order to sell a security when it reaches a specific price, intended to limit potential losses.

What to consider

Set a stop-loss to automatically limit potential losses.
Choose a percentage that reflects your risk tolerance.
Review and adjust your stop-loss settings as market conditions change.

Real world scenarios

Fearing further losses, Laura set a stop-loss order on her investment so that her shares would automatically sell if the price dropped too low.

Related terms

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