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Stop
Loss |
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An
order placed with your broker to sell or buy to cover your open
position at a particular price. |
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A stop loss is designed to limit
the amount of trading capital that can be lost from any one particular
trade or investment, or to lock in a profit. Most traders recommend using a stop loss whether it is mental (a price remembered by the traders) or physical (logged with a broker). Stop loss orders can be used to cover all or part of a position. |
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