Stop-Loss Order
A stop-loss order is an order placed with a broker to buy or sell a security when it reaches a certain price. This type of order is designed to limit an investor’s loss on a security position. A stop-loss order is typically used to limit the amount of loss an investor is willing to accept on a security position. It is also used to protect profits on a security position.
History of Stop-Loss Order
The concept of a stop-loss order has been around since the early days of stock trading. It was first used by traders to limit their losses on a security position. The concept of a stop-loss order has evolved over the years and is now used by investors and traders alike to protect their investments. The use of stop-loss orders has become increasingly popular in recent years as investors have become more aware of the risks associated with investing.
Comparison Table
| Type of Order | Description |
|---|---|
| Stop-Loss Order | An order placed with a broker to buy or sell a security when it reaches a certain price. |
| Limit Order | An order placed with a broker to buy or sell a security at a specified price. |
| Market Order | An order placed with a broker to buy or sell a security at the current market price. |
Summary
A stop-loss order is an order placed with a broker to buy or sell a security when it reaches a certain price. This type of order is designed to limit an investor’s loss on a security position. It is also used to protect profits on a security position. For more information about stop-loss orders, investors can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Limit Order
- Market Order
- Stop-Limit Order
- Trailing Stop-Loss Order
- Time-in-Force
- Day Order
- Good-Till-Canceled Order
- Fill-or-Kill Order
- Immediate-or-Cancel Order
- All-or-None Order
