A stop-loss is a pre-set exit that closes a trade once price reaches a level where the original idea is proven wrong — not an arbitrary percentage. It should be placed when the trade is opened and never moved against the position. Moving or deleting stops is one of the most expensive habits in trading.
This term belongs to Risk & statistics. See how it fits the bigger picture in The Money, part of the free DEGEN ACADEMY — or watch it play out on the live terminal.
Related terms
FAQ
What is Stop-loss?
A stop-loss is a pre-set exit that closes a trade once price reaches a level where the original idea is proven wrong — not an arbitrary percentage. It should be placed when the trade is opened and never moved against the position. Moving or deleting stops is one of the most expensive habits in trading.