scorecardresearchStop-loss order: An effective way to limit the loss by stock's price fall. Details here

Stop-loss order: An effective way to limit the loss by stock's price fall. Details here

Updated: 30 May 2022, 08:08 AM IST
TL;DR.
To prevent incurring huge losses during rapid fall in stock prices, investors tend to use a stop-loss option which executes a sale in case stock slides below a threshold. Let us understand what does it mean
Stop-loss is a tool to prevent unlimited loss wherein security is sold if its price slips below a pre-decided level.

Stop-loss is a tool to prevent unlimited loss wherein security is sold if its price slips below a pre-decided level.