Stop loss意思
"Stop loss" is a term used in the context of trading, particularly in the stock market, forex, and other financial markets. It refers to a pre-determined price level at which a trader will sell their investment in order to minimize potential losses.
In other words, a stop loss is a risk management strategy that helps traders limit their losses by automatically selling their position when the price of the asset falls to a certain level. This is done by placing a "stop loss order" with a broker, which is a type of order to sell the asset as soon as the price hits the specified stop loss price.
The purpose of using a stop loss is to prevent further losses if the market moves against the trader. By setting a stop loss, traders can control the maximum amount of loss they are willing to take on a particular trade, which can help them to manage their risk and protect their capital.
It's important to note that while stop losses can help to manage risk, they are not guaranteed and may be subject to "slippage" (where the price moves away from the stop loss price due to market volatility) or "market order fills" (where the trade is executed at a different price than the stop loss price due to market conditions). Therefore, it's important for traders to use stop losses as part of a broader risk management strategy.