Stop Loss

What this unit covers

Learn what a stop-loss order is and how to place one at the moment you enter a trade.

By the end you will be able to

• Explain what a stop-loss order is and why it replaces in-the-moment decisions.
• Identify where the stop-loss field appears on a trading order screen.
• Set a stop-loss at trade entry instead of treating it as a later step.

How it starts: The Moment the Price Turns

1. You buy shares at 500 rupees each and the price is steady.
2. By afternoon it has slid to 470 rupees and keeps drifting lower.
3. You never decided a selling price, so what do you do now?

Words you will meet

Stop-loss order

An instruction to exit a trade automatically once the price reaches a level you set in advance.

In this module: Risk Management

1. Stop Loss (this unit)
2. Position Sizing
3. Risk–Reward
4. Trade Management