๐Ÿ“Š What Is a Stop-Loss in Trading?

A stop-loss is an order designed to help limit potential losses if the market moves against your trade.

Before entering a position, traders often decide:

๐Ÿ”น Entry price
๐Ÿ”น Stop-loss level
๐Ÿ”น Take-profit target
๐Ÿ”น Maximum amount they are willing to risk

A stop-loss does not guarantee that losses will be avoided, especially during fast market movements or price gaps. Always use proper risk management and never trade with money you cannot afford to lose.

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