Stop Loss

An order placed to sell a security when it reaches a certain price.

Detailed Definition

A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. It is designed to limit an investor's loss on a security position.

Related in General Trading

Dividend

A distribution of corporate profits to shareholders.

Market Maker

An entity providing liquidity by offering both buy and sell quotes.

Portfolio

A collection of financial investments.